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- July 29, 2011 at 8:24 am #357337
I bought a multifamily house with a girlfriend in 2005. We purchased the house for $ 480,000; I put down $ 70,000 and she put down $ 7,000. We have a partnership agreement which stipulates equal ownership–we split profits and losses 50/50 after return of capital investments. She and I have since broken up but still own the house together. I have a wife and a new baby and want to get out of this partnership but she refuses to put the house on the market. If I force a sale, it will go to court and the house goes to auction. This means that it could sell for much less than we owe on it and we could both lose a lot of money.
We rent it out but she lives in one of the units. The rental income plus the money she contributes (which is equal to a fair market value in rent) covers the mortgage. She is trying to claim that because she has been paying down the mortgage she is entitled to a greater percentage of the house’s value. This is ridiculous considering that I could be renting the unit to a tenant if she were not occupying it. The house is in a very desirable neighborhood where apartments are easy to rent. Also, she could never have owned this house without my down payment.
What can I do to dissolve this partnership? Is there some way to get her to move off the premises or to force her to sell the house without going to court and risk losing money auctioning off the property?
Thank you so much for your help with this question.
Thank you for your answers so far. Very helpful and thorough. I live in the US. I have a lawyer but all he can do is write letters stating what my rights are according to the law. I have thought about buying her out but she is irrational and wants her investment back plus what she has put in to the mortgage (through monthly payments–equal to rent) plus equity, which in this market seems unfair. I have offered to let her buy me out but she could not secure a loan (or says she couldn’t) because she doesn’t have money to put down. Why should she try when she has an interest free loan from me for 70 grand?
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