I am a co-owner of a house (in Pa) that doesn’t live in the house, what are my rights

**jms108** · 11-03-2011, 10:52 AM

I am looking for some advice before I go to see a real estate attorney about my current situation where I am a co-owner of a property. I am “now” aware that I should have done some sort of a contract before entering this real estate deal so please spare me the lectures lol.

I purchased a house in September of 2009 with my then girl friend (mother of my child). I am the primary borrower on the loan and she is the secondary borrower. I put $1,000.00 (pre-move in) of my own money into the house and we received a gift from one of her relatives for approximately $9,000.00 to cover the closing costs. Shortly (3-4 weeks) after we moved into the house she notified me of her wish to be single and then shortly after that I found out she had started some sort of a relationship with another guy. Over a 18 month period after the home purchase she made the living environment at the house so unhealthy for me and my little girl I was more or less forced to move out. I moved out in April of 2011 with a promise from her that she would take over 100% of the bills including the mortgage and pay everything on time. Not wanting/being able to pay 100% of the house bills and mortgage I decided it was for the best for her to stay and me to go. For the approximately 18 months I lived in the house I paid 45% of all the bills including the mortgage. In May of 2011 I learned that there was a male roommate/her new boyfriend that is more or less living in the house with her. Everything is out of my name now but the mortgage, which is being paid in full and on time so I can’t complain there.

I didn’t buy the house with her just as an investment but that is an added plus of owning a home. My long term plan was to rent the house out years down the road when we upgraded. I feel as though a financial investment has been pulled out from under me. I am not looking to get even but rather maintain the status of home owner with at least some of the perks. She has not been able to, from what I know, get a mortgage solely in her name so I am still on it. I am not even sure I would “want” to sign it over to her even if she offered me money. So my questions are as followed…

1. What can/should I do to make out from this bad situation?
2. Can I collect some sort of rent since someone else is living there with her?
3. From what I know I can not declare the house of my taxes since I am not paying on it even though it is my SSN that is listed with the IRS.

Any help would be greatly appreciated. And as I stated I have moved on from the relationship but not being a homeowner in some way shape or form is the real pain. I am also aware that the timing of her wanting to be single is very very shady.

Thanks in advance

**CC Lifestyle Realty** · 11-03-2011, 11:31 AM

WOW. That is one tough situation. Before I continue I am not an attorney and nothing I write can be held against me. Take it "as-is", and worth a total of zero cents.

Based on what I read you both are on the mortgage with you as Primary and she as Secondary. I am assuming only your name is on the Deed.

Since she is also on the note she has legal interest to that property. You cannot kick her out or force her to pay rent. I am not sure if PA is a Palimony state or not so you will need to check with an attorney to determine what rights you have in that regard.

To obtain the remaining interest from her you will probably require a court judgement or an agreement from her in writting. I would make an offer to buy her out. If only your money was spent on the home and that you have paid all mortgage to date then a court may side with you and transfer her interest at a fraction the value of her ownership stake.

Good luck but getting an attorney is the right course of action I believe.

**jms108** · 11-03-2011, 05:25 PM

Originally Posted by CC Lifestyle Realty

WOW. That is one tough situation. Before I continue I am not an attorney and nothing I write can be held against me. Take it "as-is", and worth a total of zero cents.

Based on what I read you both are on the mortgage with you as Primary and she as Secondary. I am assuming only your name is on the Deed.

Since she is also on the note she has legal interest to that property. You cannot kick her out or force her to pay rent. I am not sure if PA is a Palimony state or not so you will need to check with an attorney to determine what rights you have in that regard.

To obtain the remaining interest from her you will probably require a court judgement or an agreement from her in writting. I would make an offer to buy her out. If only your money was spent on the home and that you have paid all mortgage to date then a court may side with you and transfer her interest at a fraction the value of her ownership stake.

Good luck but getting an attorney is the right course of action I believe.

I know it is and thanks.

We are both on the deed.

I guess I should have explained the "rent" thing better. What I mean is do I get half of his share of "rent" payments in the form of equity and tax deductions (i.e. 25% to declare on taxes for the house and 25% of equity at closing)?

Pa is a palimony state.

At this point I think I would let her buy me out rather than the other way around. So if that did happen a judge could order me to sign the house over to her like a partition since she has been paying all the bills for around 7 months now? If that was done would they require her to buy me out as a stipulation?

**CC Lifestyle Realty** · 11-04-2011, 07:12 AM

If anyone is paying you rent and you are not physically living in the home then all of that money is reported as income to the IRS. The IRS outlines the specifics there. You obviously can deduct qualifying costs you incurred. Any rent you receive is not considered a paydown toward equity unless already agreed and put in writing by all parties.

As for who has a full right to the home that is debateable. Similar in a divorce. Either party has a right to the home even if one is not currently living there. With that said the judge would probably look at intent by all parties in making that decision. Guessing how this will turn out is really just that, a guess. What would most likely happen is you will go into mediation before a final hearing and try to work something out. If you can't come to some agreement there a judge will ultimately decide.

My family has been around or involved in legal business for many many years and the best advice is to NOT give a judge a chance to make any decision. He has the ability to do almost anything. Decide what you want, make a proposal to the other party, and try to work something out. If you are unable to communicate effectively then get an attorney and hash it out in mediation.

**jms108** · 11-04-2011, 09:50 PM

Originally Posted by CC Lifestyle Realty

If anyone is paying you rent and you are not physically living in the home then all of that money is reported as income to the IRS. The IRS outlines the specifics there. You obviously can deduct qualifying costs you incurred. Any rent you receive is not considered a paydown toward equity unless already agreed and put in writing by all parties.

As for who has a full right to the home that is debateable. Similar in a divorce. Either party has a right to the home even if one is not currently living there. With that said the judge would probably look at intent by all parties in making that decision. Guessing how this will turn out is really just that, a guess. What would most likely happen is you will go into mediation before a final hearing and try to work something out. If you can't come to some agreement there a judge will ultimately decide.

My family has been around or involved in legal business for many many years and the best advice is to NOT give a judge a chance to make any decision. He has the ability to do almost anything. Decide what you want, make a proposal to the other party, and try to work something out. If you are unable to communicate effectively then get an attorney and hash it out in mediation.

I am not personally receiving any rent. However I am very sure she is recieving rent from her bf.

The problem is that she is not rational.

**CC Lifestyle Realty** · 11-08-2011, 08:53 AM

You do have a right to a portion of that rent if she is charging anyone. Only way to get that will most likely be taking legal action if she is not rational.

**jms108** · 11-08-2011, 09:07 AM

Originally Posted by CC Lifestyle Realty

You do have a right to a portion of that rent if she is charging anyone. Only way to get that will most likely be taking legal action if she is not rational.

My accountant mentioned a forensic account would be needed to prove that he is paying her. Explain to me your angle.

**Greg** · 11-09-2011, 05:35 AM

1. You pay for a forensic audit.

2. You pay an attorney to sue her for half of the money she is getting minus the utility expenses, etc.

3. You pay your attorney wayyyyyy more than any money you will receive from the lawsuit.

4. She stops depositing the rent money into her bank account thus hiding it and you get no more money in the future.

5. You lose.

If you want out you need to force her to sell the house.

**jms108** · 11-09-2011, 05:54 AM

Originally Posted by Greg

1. You pay for a forensic audit.

2. You pay an attorney to sue her for half of the money she is getting minus the utility expenses, etc.

3. You pay your attorney wayyyyyy more than any money you will receive from the lawsuit.

4. She stops depositing the rent money into her bank account thus hiding it and you get no more money in the future.

5. You lose.

If you want out you need to force her to sell the house.

For some reason I am to nice. I have leverage against her since I found out I am eligible to receive $370 a month in child support. I would hate to play that card but some times things must be done.

A partition/forcing her to sell the house would have to happen in the future since we put minimal money down and the down market. Even if that were to happen how much do you think a partition would cost or I guess all the fees included.

My concern is my loss of future returns from the property. I will not be getting another home in my name for at least 5 years so in the mean time I lose added equity though monthly payments, appreciation, and tax breaks. Some people would say I am nuts but that money adds up. I would estimate it to be around $10,000 not even including possible appreciation.

**CC Lifestyle Realty** · 11-09-2011, 06:50 AM

My personal opinion would be to not do forensic accounting. Cost too much and for your scenario unrealistic. I would use discovery during litigation to access everything she owns or has financially. Your attorney will request through the courts for them to present and file all financial information.

Your situation is highly complicated and you really need to speak with someone that has experience litigating this type of matter. Interview many attorneys until you find the right one for your situation. Determine their rates and go after her. You can do this in a nice manner and still give her every opportunity to do the right thing. Just because you start the process doesn't mean you can't drop the suit at any time. Hopefully she will wise up before final hearing. If she doesn't have money to pay for an attorney then you have leverage. Child support however may not matter in your case, only an attorney can let you know for certain.

Most likely you will get to mediation and work something out before ever seeing the judge. The cost would probably be around $3000-$5000 depending on the attorney's rates, the length of time involved, and if mediation occurs. If you are actually under $10,000 then you still come out ahead and she will probably sell you her half of the house at a discount.