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My parents and I each own 1/3 as Joint Tenants (with right of survivorship) as stated on the conveyance of the title deed in a principal residence that we all share.

The old house on the land was paid off and just owned by my parents before this. Then, three years ago, they gifted me 1/3 of interest in the property as a JTWROS. In exchange, I have taken out a substantial mortgage (with my Mom and Dad as co-signers on the mortgage), and only I have been paying the mortgage payments in order to tear down and rebuild a new home on the existing land. The intention was to make sure the house passes to me when they pass.

There is still a mortgage outstanding right now on the home, and they have expressed the desire to sell our house.

They want to split the sale proceeds 1/3 to me, and to take out the outstanding mortgage from my share only.

I say no, because the entire mortgage proceeds was paid to the builder (I put in all my time, my wife did, too, and I have the building contract, check stubs, payment records to prove it). From my building of the brand new house, the property value has risen to an extra 1/3 on the market (or possibly more, as new houses are highly desirable now).

What I want is, to have the net sale proceeds (after deduction of the outstanding mortgage, commission fees, legal fees...etc. there are no other liens on the property from the title search). Divide the net sale proceeds by 1/3 to give to me for my portion. This is my legal entitlement, as they have gifted me 1/3 of their house, and I have taken on a mortgage (with them as cosigners) against the ENTIRE HOUSE (banks do not loan to just 1/3 interest of the house ,they loan to the entire house), and have been making all mortgage payments, to increase the value of the house by at least 1/3 of value on the market.

Can I just have the lawyer to give me 1/3 of the net sale proceeds at closing? I feel they are trying to screw me over (as always, they always have been screwing over my finances).

How can I go about getting my 1/3 after mortgage payout?

Thank you.

We are in Canada.

  • This is more of a legal question than a personal finance question. I think you'll need to talk to a lawyer (your own lawyer, not your parents' lawyer) about your options. – Ben Miller Aug 13 '15 at 23:00
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    You really should have talked to a lawyer and made all this explicit much earlier. Since you didn't do it then, you need to do it now, under pressure... Remember that unless there is consensus on what's fair, insisting on one particular interpretation can be a good way to ruin a friendship; you might want to consider conceding a bit to keep the peace... or talking to someone who specializes in family counseling to help you reach agreement. There is no automatic correct answer, only the one you and your family agree to. – keshlam Aug 13 '15 at 23:13

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