How do we get out of a property with partners (family)?

Question

I am going to try and make a long story short, so if you have questions or need clarification please let me know.

My wife before we were married inherited 25% of one side of a duplex. The other 75% belonged to her brother and her 2 cousins. My wife's parents bought out the 2 cousins so that no one would have to deal with them and they would just go away. Now the current ownership is 25% my brother in law, 25% mother in law, 25% father in law and my wife has the remaining 25%. On a side note, my mother and father in law own the other side of the duplex 100%.

We want out but her parents are interested in buying us out and neither is her brother; so we are basically being held hostage in the deal. It is rented and cash flows to us about 1250-2000 per year.

Is there a way for us to force one or all of them to buy us out or to require the property to be sold. Since this is family there is nothing in writing other than everyone's name on the successor trust deed.

Thoughts? Suggestions?

Thank you for you time in advance!

Mathew

Rick H. · Answer

I'm going to restate this for clarity purposes so tell us if I've got it wrong;

A - owns 25%

B - owns 25%

C - owns 25%

D - owns 25%

You are married to D. Your wife (not you) inherited this interest and are receiving some benefit now. Questions:

How are you being held "hostage"?

If you have fee title, recorded (deeded) interests, you can transfer these, meaning they can be sold, traded or encumbered.

Now, as to why anyone would want to trade into your situation, or what the market value of a quarter of a half-house, that's another thing.

From a practical standpoint, this is your wife's family and anything you do to prematurely push the sale will surely cause conflict. This will probably result in you sleeping on the couch for an indefinite period of time, maybe causing back problems or who knows what? Are you willing to sacrifice your health and personal life for this property?

ROTIMI OLUWO · Answer

JG Wenworth can help you out lol

Bob E. · Answer

Dewy AZ? How much is this 25% even worth? Did your wife invest in it or inherit it?

Her parents probably think they are doing her a favor, since it will go to her or her brother one day......

If she didn't put cash in look at it as a long deferred gift and let it go.

Brian P. · Answer

There is a principle here, your in-laws are just interested in keeping you under their thumb. Partition suits are expensive but just the threat of one and the fact they are almost always granted and the court usually requires the property to be sold, so Daddy and Mommy will have new owners next door. and be out more money then they would like and the next thing they will threaten is to cut you out of their will. Any one who will dance because of the famous will carrot deserves what they get.

I have been involved in 4 of these situations and in three of them the other parties caved in quickly when they finally realized what was likely to happen. The fourth was an in-law situation where a sister was trying to end up with the whole tamale, nothing for anyone else, well not anything we could end up with some crumbs if we kissed her rear and fawned over her enough. She forgot what I really did for a living and was more then ready to met the lion and her third rate legal adviser in the arena to protect my wives interests.

.

Will Porter · Answer

The traditional rule is that anyone can sell their interest in the property. You can sell it to someone else, someone random, you don't have to sell it to the other owners. (Obviously your state may have modified this so you should ask a local lawyer).

Also if you have a contract, then the terms of the contract will win out over this default situation.

Edit: Ok I see you're talking about a trust now. You need to find out who actually owns the property, of record, at the courthouse. Does your wife actually own 25%, or does a trust own 25% for her benefit? Or someone else? It will complicate things if she doesn't own her share free-and-clear. Talk to a lawyer.

Hasan Hamdan · Answer

I do not know if your state is different with this, but to my knowledge you should be able to sell your rights to anyone, not just the other part-owners.

Steven Hamilton II · Answer

I'd recommend talking to your wife and seeing what she wants to do. If she doesn't ant to change it as it may cause conflict. I'd recommend that you let it be.

Steven Hamilton II · Answer

First mistake is nothing in writing. You are held hostage in it as a joint tenancy. I'd recommend that you sit them down and talk to them. What is the reason you want out of it for?

Andy Collins · Answer

If neither of the other parties want to buy you out, your just going to have to hold it, and the way its structured, I doubt they will buy you out. Family involvement always complicates things.

The few times I have bought something 50-50 I put a clause in that if one party wants to name a price,, the other party can decide if they want to sell their half of buy the other out at that price..

Mathew Deines · Answer

@Rick Harmon - You're correct, not a duplex. We are being held hostage because they do not want to buy us out or sell the property. They are also telling us that the title is held as a successor trust deed so that if something happens to anyone on the deed their interest just gets split between the remaining people. Great for my mother & father in law, however my wife and her brother are both married now and their spouses, me included, would loose out on what was our spouses property.

Her parents could be looking at this as though I am in it for the money but really we want to separate from the family and invest in another property that will a) not be managed by my mother in law and b) will be in a better market than Dewey Arizona.

How do we get out of a property with partners (family)?

How do we get out of a property with partners (family)?

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