we bought a home together last year and have been equally splitting the mortgage since then. however, i put down the majority of the down payment on the home. can someone help me figure out an equation by which to determine who owns what percentage of our home--as in if i wanted to buy it from him, or vice versa, how would we go about figuring out what that value/number would be?
thanks!
2007-09-12 04:47:41 · 9 answers · asked by home_tundrah 2 in Business & Finance ➔ Personal Finance
in the court law you both equally on the house if there arent any contingencies on the title...and you're both on it.
if you put the majority....then subtract what you put down from the top.
if you put 20 down...and he put 15k down....then 5k should go to your first...then you split the rest.
2007-09-12 04:53:44 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If two people buy a property, if there is nothing else agreed at the time of purchase, it is legally assumed the house is owned equally, 50-50. The amounts that people paid into it do not matter.
The two of you can come up with any different scenario you want to, 40-60, 20-80, but that would be a seperate agreement that both of you must agree to. Again, legally, it is 50-50, straight down the middle.
One that I would suggest would be an after down split. Take whatever the original down payment was and split that up according to what was paid, then split all other equity 50-50.
For instance, if your property was worth $200,000 when you bout, you put $15,000 down and your bf put up $5,000, - then for the first $20,000 you get $15,000 and bf gets $5,000 - or divided up 3-1. Once the $20,000 downpayment is repaid then the remainder is 50-50
So if you sell for $300,000, the equity is $100,000. You would get $55k ($15k from DP and 50% of the remaining $80k) and the bf $45k ($5k from DP and 50% of the remaining $80k)
Or again, any way that you both can agree on.
2007-09-12 05:07:05 · answer #2 · answered by rlloydevans 4 · 0⤊ 0⤋
Since you have done 50/50 on the mortgage payment that part is negligable in the equation I would take the the amount you paid of the down payment, divide it by the total downpayment, and then multiply it by 100 and that will give you what percentage is yours.
You will have to have the house assessed by a professional to get what it's current value is worth. If you have done any home improvements make sure that the person who did the home improvement gets credit for the amount that it increases the value of the house.
Take the assessed value of the house and subtract your percentage from it, and any home improvements that you are responsible for, then add the value of any home improvements that he is responsible for, and that is the amount that you owe him.
2007-09-12 04:55:34 · answer #3 · answered by Amanda I 5 · 0⤊ 0⤋
You are equal owners. If you want to change that, you have a couple of options:
1 - Ask him to pay you the amount that would make him a full 50% partner from the downpayment, and have a legal document prepared so you both have this for the future possible sale.
2 - See your attorney to see if there are other options that work in your state that would split the house differently.
Next time seek the advice of an attorney first, they could have worked that into the closing documents for you so it would not be a big deal.
Good Luck.
2007-09-16 04:02:45 · answer #4 · answered by Maggie Jeans 3 · 0⤊ 0⤋
The answer is complicated and it depends on intent and state law. Will the amount that you paid for the down payment in excess of 50% be considered a gift to your boyfriend or not? Absent an explicit agreement, this will depend on state law, but there are several possible outcomes.
One possibility is that you each own the house equally, and your boyfriend owes you the amount of you paid as an excess down payment. In other words, the house is owned 50/50, but you have a secured debt equal to your share of the down payment over 50% (with no interest)
Another possibility is that ownership tracks the amount of equity paid. In that case, your ownership is the total amount that you paid divided by the total amount that both of you paid towards principal. Amounts paid towards interest are irrelevant for purposes of ownership. It sounds like this scenario would give you a larger share.
Absent an agreement, it will depends on how your state treats unspecified joint ownership, which could involve other possibilities. You will probably need to consult an attorney assuming that you and your boyfriend can't agree to something. If you and your boyfriend do agree to something, I suggest you write it down and both sign it.
2007-09-12 05:09:46 · answer #5 · answered by ? 6 · 1⤊ 1⤋
If you are trying to plan for a possible break-up in the future, you may want to get a Property Agreement drawn up by a lawyer (or yourself).
If you have a bad breakup, in the eyes of the law since both of you are on the title, you both own half, regardless of who spent what.
2007-09-12 04:58:57 · answer #6 · answered by squirrely 6 · 0⤊ 1⤋
You each own half of the amount financed, and you each own the % of the amount you put down on the downpayment.
Therefore, if the house cost 120,000 and you put down 15,000 and he put down 5,000, then you own 75% of 16.67% (75% is the % of 15,000 on 20,000 and 16.67% is the % of the down payment) + 50% of 100,000. So you own 62.5% and he owns 37.5% in that scenario.
you can plug your own numbers in.
2007-09-12 04:55:39 · answer #7 · answered by patrick 6 · 1⤊ 1⤋
Since you did not have anything in writing, your ownership is 50/50.
2007-09-12 04:55:43 · answer #8 · answered by regerugged 7 · 1⤊ 0⤋
you both own haft no matter who put in the most down payment.
2007-09-12 05:29:57 · answer #9 · answered by willliam d 2 · 0⤊ 0⤋