My boyfriend owns a home with his ex girlfriend. It was bought as a tax sale. He has been the only one putting money into the home for remodel and repairs all with his own money. He works all day then goes to the house and works on it until 8pm. He is paying all utilities and taxes.
He has the house almost ready to go up for sale. Now after not doing a single improvement on the home the ex wants half of the sale amount.
There was no agreement in place when the house was purchased as to what would happen when it would be sold.
It is up to your boyfriend and his ex. One option is to take the cost of the renos and all of the other expenses off the top of the sale price and give that money to whoever paid for it. Then split what is left evenly between the two of them. They should have had an agreement when they started.
Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
3y
Hey Donna, (This isn't legal advice, I recommend you contact an attorney)
Thats an unfortunate situation, I would assume that the ex would be owed half of the funds from the sale if her name is on the deed. Especially if there's nothing in writing stating otherwise.
There may be an argument since your boyfriend is the only one putting money into the remodel. But depending on the net proceeds from the sale, the cost of litigation may not be worth the fight.
It is up to your boyfriend and his ex. One option is to take the cost of the renos and all of the other expenses off the top of the sale price and give that money to whoever paid for it. Then split what is left evenly between the two of them. They should have had an agreement when they started.
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
3y
@Donna Dwyer, I would put it all down on paper and then come to a written agreement with her prior to even listing the property.
For example: Rehab costs: $15k, Labor reimbersement to bf $5k, holding cost reimbersement (taxes, utils, etc), $5k. Then its clear what is paid from the sale BEFORE they split what's left. She is entitles to 50% of the profit, not 50% of the proceeds from the sale.
I would tell her that she will get LESS money if they have to fight about it in court. Itemize everything out in detail and bring copies of receipts/bills to show her anything she wants to see.
BTW, I'm in your market if you want to hmu and discuss further.
Real Estate Broker · Jacksonville FL & Middletown CT · Member since 2008 · 1k+ posts · 632 votes
3y
Assuming they are joint owners, legally they both own half the property. Without a written agreement stating otherwise, the ex will be entitled to half the proceeds of the property.
Assuming they are joint owners, legally they both own half the property. Without a written agreement stating otherwise, the ex will be entitled to half the proceeds of the property.
@Minna Reid, however the ex could then be liable to reimburse him for the rehab even without a written agreement. There is a legal concept called "unjust enrichment" whereby she would owe him.
I had a friend who used a landscaping company to install a lawn and trim some bushes. A year later when they were out of town they came back and did work on their property without being asked. Then they sued to be paid! The landscaper claimed he had them on a list to come back from a year prior when they was never requested.
The judge ruled it didn't matter because the property owner had been unjustly enriched. So, they had to pay.
There are probably other legal concepts by which the ex would have to pay. The difficulty is that after closing and proceeds have been distributed its hard to collect. So, knowing the ex owes the money the key is probably to make sure everything is settled up at closing.
Real Estate Broker · Jacksonville FL & Middletown CT · Member since 2008 · 1k+ posts · 632 votes
3y
@Kevin Sobilo I think there is a long shot chance he could try to sue after, but I think it would be time consuming and expensive to pursue, and the chance of winning slim.
The landscaper incident does not involve two joint owners of property, but a contractor doing work on a property (whether authorized or not).
If these two had a written agreement in place about sharing the costs of improvements that's another story, but he volunteered to fix up his own home with his own money. I don't think he has a leg to stand on here. Live and learn.
@Kevin Sobilo I think there is a long shot chance he could try to sue after, but I think it would be time consuming and expensive to pursue, and the chance of winning slim.
The landscaper incident does not involve two joint owners of property, but a contractor doing work on a property (whether authorized or not).
If these two had a written agreement in place about sharing the costs of improvements that's another story, but he volunteered to fix up his own home with his own money. I don't think he has a leg to stand on here. Live and learn.
@Minna Reid, keep a couple things in mind. They almost certainly had an agreement. They bought a distressed property. Their intent to rehab and resell it was likely the plan all along. Does not have to be in writing.
Who said they were joint tenants! They very well could be tenants in common, but I'm not sure that would make a difference.
The whole concept of unjust enrichment would not be affected by joint ownership of a property anyways. If you follow the link above and read. The chance of success is very good I think.
Both of them never lived in the property. It was supposed to be a flip. When the broke up she basically had nothing to do with it for the past few years. It just sat empty.
I have told him keep track of all money put into it. He was wondering if he could deduct for his labor. She bought three cans of paint and put them on the porch and left. After driving an hour to get there. To me it's the point. I cant stand laziness. I have multiple rentals due to the fact that i work my rear end off and dont expect anything to come without hard work.
Then they spilt it 50/50. I know it doesn't seem "fair" that the ex will profit from this, but it's her investment too. Your boyfriend should have had an agreement with her prior to doing all the work.
Then they spilt it 50/50. I know it doesn't seem "fair" that the ex will profit from this, but it's her investment too. Your boyfriend should have had an agreement with her prior to doing all the work.
Sorry Janet I posted the quote by mistake. I don't have a problem with her getting a profit from it but the whole I'm not doing anything but want my money really chaps my a**. It's a life long behavior with her.
Sorry Janet I posted the quote by mistake. I don't have a problem with her getting a profit from it but the whole I'm not doing anything but want my money really chaps my a**. It's a life long behavior with her.
Isn't this whole issue really your boyfriend and his ex-girlfriend's problem? I'm confused how it involves you other than maybe you feel bad for him. You sound emotionally invested in a business deal that was formed before you and in which, as best as I can tell, you have no vested interest. Yes, maybe she's a lazy bum, but it's really nothing to you. If you and the boyfriend break up, are you still going to care about this issue?
I have a vested interest in my boyfriend who is working every night after already working a ten hour day. He's a wonderful man who is being taken advantage of. I would care for him and defend him whether or not we were together. He's one in a million. I was just looking for information.