Good evening Pokepick,
There are no sources to quote or laws to mention.
Both of you are at fault by not having an agreement in writing before the property is purchased. Put this as one of the most stupid things you both did in your life.
Personal opinion does not exist when there is a business arrangement. No laws were violated.
Option #1: You move in and get rid of the rent paying person.
Option #2: Leave the rent paying person in and whoever is receiving the rent (your brother) keeps it. Let them pay for the maintenance and utilities also.
Option #3: Let your brother buy out your share now that he has rent coming in. I bet the payments will just about equal the payment that you want to receive. Call us in 30 years and we will use the funds to buy you another property that you can call your own.
Option #4: You buy out the brother and you get the property. Have your brother call me and we will get him a property all his own. Get a loan if you need to.
Option #5: Depending upon the vesting (how the title is recorded, wait for him to die and you may receive the entire property. It could be vested (recorded) in a way that his portion of the property will be distributed by his will. That may make your new "business" partner(s) another person or group of people that you do not know but you will come to love and cherish them through the dealings of the property.
Option #5: Be prepared to pay the upkeep including taxes and insurance for the property and expect nothing in return.
Option #7: You will need both brothers to agree on this one, set up a trust with the rent income going into the trust. When the trust is set up, instructions will be filed with the trust as to who gets what from the trust. Seek out a great trust attorney for this Asset Protection issue.
If this question was from your brother, I would provide the same advice:
If you cannot agree on the ownership of the property, seek an attorney to help you both agree and fix the ownership issue. Get it in writing and place it with your wills.
My daddy always told me to never, ever, do business with your friends or relatives. You will lose them both.
Please contact me immediately if you know a person that cannot make their mortgage payments. I will work with them to avoid foreclosure or bankruptcy at no charge or fees to them.
The Brodkin Group
Steven Goldman, CRS
Certified Distressed Property Expert (CDPE)
Certified Default Advocate (CDAT)
Certified Short Sale Professional (CSP)
Certified Probate Real Estate Specialist (CPRES)
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