My question involves real estate located in the State of: Wisconsin
Hoping for candid opinions on a real estate dispute between family members. Below are the facts:
Person A and Person B agree to share a piece of real estate, splitting all expenses (taxes, insurance, association fees and utilities) and rental proceeds 50 / 50. 9 months after sale, Person B says “screw it” and stops paying their half of expenses which Person A is forced to assume. Over several years, Person A’s extra expenses (paid on behalf of Person A) accumulate to exceed the cost basis of Person B’s half of the property (with property value consistent to the sale price). Further, Person A, out of good faith, continued to pay 50% of rental proceeds to Person B the whole time.
In the present, Person B is demanding a payout from Person A for 50% of the property value. Person A refuses, saying that the amount of extra payments which they assumed on Person B’s behalf, now exceed Person B’s basis in the property (with no significant value appreciation). Does Person A owe person B anything?
None of the above was ever formalized in writing. Person A and Person B each had a "basis" in the property of 35,000 with a verbal agreement to share all costs and proceeds. I understand that per the "statute of frauds" that none of this agreement could be enforced legally... However just looking for inputs as to whether Person A's position (and logic for it) is valid.
Hoping for candid opinions on a real estate dispute between family members. Below are the facts:
Person A and Person B agree to share a piece of real estate, splitting all expenses (taxes, insurance, association fees and utilities) and rental proceeds 50 / 50. 9 months after sale, Person B says “screw it” and stops paying their half of expenses which Person A is forced to assume. Over several years, Person A’s extra expenses (paid on behalf of Person A) accumulate to exceed the cost basis of Person B’s half of the property (with property value consistent to the sale price). Further, Person A, out of good faith, continued to pay 50% of rental proceeds to Person B the whole time.
In the present, Person B is demanding a payout from Person A for 50% of the property value. Person A refuses, saying that the amount of extra payments which they assumed on Person B’s behalf, now exceed Person B’s basis in the property (with no significant value appreciation). Does Person A owe person B anything?
None of the above was ever formalized in writing. Person A and Person B each had a "basis" in the property of 35,000 with a verbal agreement to share all costs and proceeds. I understand that per the "statute of frauds" that none of this agreement could be enforced legally... However just looking for inputs as to whether Person A's position (and logic for it) is valid.
Co-Ownership: Do You Get Credit for Paying Expenses When Buying Out a Real Estate Co-Owner
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