Legal Question in Intellectual Property in New York

if 2 brothers and 1 sister inherit there mothers house, and the sister wants to leave the house and get her 1/3 of her share but the 2 brothers do not have good cedit at all

Asked on 1/10/13, 11:28 am

1 Answer from Attorneys

Your question is actually tailored for a Real Property attorney instead of an Intellectual Property attorney. Please understand that my advice below is just general advice that could apply in common situations. By speaking with an attorney you may receive specialized advice taylored exactly to your needs.

1) Typically, the type of Deed passed to the siblings will determine what steps to take. If you were giving a "Tenancy in Common" then each of you own a 1/3 share with no "right of survivorship". This means that if one sibling dies, he may pass on his 1/3 share to his kids who will then own a share with their uncles. It also means that the sibling that wishes to sell may sell her share to anyone she wishes and will not be limited to selling just to the brothers - you must inform the purchaser that they are only buying 1/3 of the house though. It may even be possible to get a "reverse mortgage" for the sister's 1/3 share where she would receive money from a bank and the bank would join the brothers as a 1/3 shareholder. If the Deed is more complicated then this may not apply.

2) Is there any debt/mortgage remaining on the property? This includes Tax Leins, Construction Leins, Appliance Leins, etc. If so, the two brothers must refinance each debt and remove the sister as a third party to those debts. Then, and only after the debts are refinanced in the brother's names, the sister can sign a "Quit Claim" deed to her share of the property and the two brothers will each own a 1/2 share. It does not sound like this is possible since the brothers may not be able to refinance with poor credit ratings.

3) Is the sister willing to take other assets in place of money for her share? If so, she may take any payment that they all agree to and sign a "Quit Claim" deed to release her share. There are legal requirements to ensure the deed is honored, but remember that debts travel with the person's name not the deed to the property. It is in all parties best interests to satisfy all financial obligations between each other and any debt holder first, then sign & record deeds second.

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Answered on 1/10/13, 12:13 pm

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