"My brother and I inherited our mother's home, and my brother and his wife moved in. We had a gentleman's agreement that at some undetermined future time when my brother moves out, we'd sell the house, the cost of any home improvements made by my brother would be divided by half, and my potential rental income would be halved, too and settled upon the home sale."
"Start by building a spreadsheet that clearly lays out all the expenditures. There are four chunks of information you need: What the market rent would have been over the past five years; how much everyone has paid for items like property taxes, insurance, major repairs, utilities; what improvements have been made, and at what cost; and, what is the current market value for the property?"
A jointly inherited home is occupied by one sibling under a gentleman's agreement to sell later and split improvements and rental income. The occupant now claims entitlement to half the sale proceeds without accounting for prior contributions. The correct first step is to assemble precise financial data rather than rely on feelings. Create a spreadsheet listing market rent for the occupancy period, all payments for taxes, insurance, utilities, and major repairs, documented improvements with costs, and current market value. Present the spreadsheet to the occupant to negotiate an equitable settlement and consider mediation or legal counsel only if necessary.
Read at Slate Magazine
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