My friend and her husband bought a home with another friend. The friend contributed a small amount for the down payment and has been paying rent but is listed as an equal co-owner on the deed. The friend and husband got a mortgage (in their names only) and are paying that. When they go to sell the house, is the friend entitled to a third of the sale price, or just what’s left over after the mortgage has been repaid.
If everyone is an equal co-owner of the house, they are all entitled to an equal share of the sale proceeds, unless they have some other agreement/contract in place.
The friend and husband got a mortgage (in their names only)
So they took on some debt, using (hopefully only their portion of) the house as collateral. This has nothing to do with who owns the house.
is the friend entitled to a third of the sale price, or just what's left over after the mortgage has been repaid?
This is a bit backwards - your friend and her husband have an obligation to pay the mortgage, and are responsible for coming up with whatever may still be owed beyond what can be paid off with their share of the sale proceeds (as opposed to selling the house and using all the proceeds, including the other friend's portion, to pay of their debt and dividing up what is left).