WHO MUST PAY EXPENSES OF A JOINTLY OWNED HOUSE?

DEAR BOB: Three siblings are tenant-in-common co-owners of our family property. One sibling put in a large amount of personal money to improve the property. Two siblings don't want the property. One wants to keep the property. She is negotiating to buy out the two-thirds shares. How should the buyer be compensated for her personal expenses for the improvements? Who pays to cure the problems found during the pest inspection and professional inspection of the whole house? --Mr. C.G.

DEAR MR. C.G.: Real estate co-owners are obligated to pay in proportion to their ownership shares for ordinary and necessary property expenses such as mortgage payments, property taxes and necessary repairs. That means all three co-owners are obligated to pay for the pest control repairs and the professional inspection.

If the property improvements made by one co-owner weren't necessary or agreed to by the other co-owners, that individual might not be entitled to reimbursement. However, if the improvements added to the property value, it is the right thing to do for the other two owners to pay their one-third shares. This can all be worked out in the buy-sell agreement. For full details, please consult a local real estate attorney.

The new Robert Bruss special report, "Five Easy Ways to Buy Your Home and Investment Property for Nothing Down," is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this column are welcome at either address.

(For more information on Bob Bruss publications, visit his
Real Estate Center).

Copyright 2006 Inman News