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I bought a 2 family home with friend. I moving out, and she cant buy me out, so we selling. I spent $11,000 on some necessary remodel, where she did not have any to do. How does that work when we sell? Do I lose all that and split the profit 50/50?

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    Country please as this is dependent on prevalent laws in the country !!
    – DumbCoder
    Jul 19 '16 at 11:40
  • Was there anything in writing? Are you both on the deed?
    – Pete B.
    Jul 19 '16 at 14:06
  • Nothing in writing. She wants me to sell to her for little money so she can get morg. I will not do that
    – Carol
    Jul 19 '16 at 16:21
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The answer to this question is whatever agreement you and your friend make.

It seems reasonable to me that if the two of you agreed that the remodel was necessary and you paid for it, you should be reimbursed from the proceeds of the home before the rest of the profit is split. But that's just my opinion.

Jointly-owned homes are a difficult situation for this very reason. Hopefully, the two of you are still friendly and can work it out.

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If you do not have any agreement. And you can not settle. It is within the jurisdiction of a state court (in the U.S.) to decide the issue as a matter of equity under common law.

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  • Thank u. So i need a lawyer?
    – Carol
    Jul 19 '16 at 20:29
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    @Carol: Not necessarily. If it were me, I would first attempt to negotiate a settlement. I would propose a split of the net proceeds of the sale after all expenses are paid including the $11k you spent. That seems reasonable to me, personally, and apparently to the other answerer. If you can't agree without outside help, then you can try to mediate and/or arbitrate a settlement. (Post another question if you want help understanding what that is.) Then, only if you can't settle, would I sue. And if I sued, I would hire an attorney. (Unless the net proceeds qualify as a small claim.)
    – Mowzer
    Jul 19 '16 at 21:07
  • Thankyou. I just wanted to make sure that i was not asking for too much with asking for money i spent on unit.
    – Carol
    Jul 20 '16 at 11:16

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