My brother and I inherited my father's house when he died in 2009. The will states 50/50 and we're fine with this. I have lived in the home since dad's death, brother has not. House is paid for and valued at appx. $200K. Brother has to move his mother in (my step) to which I've agreed. He will be spending appx. $80K to finish the basement. He's calling this almost "buying me out" with a little left over which he will give me in cash.
This doesn't seem right somehow. He's buying me out but using "my money" to fix up the basement, I will still live here (rent free in perpetuity) but I end up with no ownership of the real property. Am I thinking of this correctly? We get along great and don't want to argue over this but I'm really confused and thinking somehow, I'm loosing on this deal. Please help.
1 Answer from Attorneys
By improving the basement he is improving his house. How does this benefit you? If he wishes to buy you out he should pay you 1/2 of the house's value. A deduction should be made for the value of your rent for the rest of your life. Get the free rent for lifer in writing, or it is unenforceable.