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What's the best plan for multi-ownership? - Fishboy - 03-20-2009
My siblings are recommending we enter a collective agreement to purchase property in two different states. I realize I should consult with a real estate attorney and I certainly will. Before I get in to this, though, I want to ask here for an opinion. What's the best way for four people to own a single family residence?
Aloha pumehana,
Brian and Mary
Lynnwood, WA\Discovery Harbour
RE: What's the best plan for multi-ownership? - Youser - 03-20-2009
I think it depends on your individual situations. If you own as 4 joint tenants you all own equal portions (25%) and if one of you should pass away the other 3 become equal owners (i.e. each own 33.33%) of the propery. No probate required. If you own as tenants in common you can each own a percentage and it doesn't have to be equal, e.g. 40% 30% 20% and 10% - but it can get a bit messy if one partner dies his/her share is probated and the other owners have to wait until that is all resolved. But you probably know all this.
They there are family trusts which I have heard about but don't know enough about to comment.
I guess it's a matter of trust too, if you are all joint tenants and you have your own dependents you have to trust the other joint owners to see your kids right if you pass away (by law they just take over whatever you put in the house). But now I'm getting in here wayyyyyyyy over my head, as I'm sure some of the more experienced folk on this forum will see. Perhaps they can offer more advice, but I guess in the end you should get some professional advice according to your individual needs and expectations.
Good luck!
RE: What's the best plan for multi-ownership? - John S. Rabi - 03-20-2009
Brian, go to my web site, I have the title options explained there. Though I don't know your individual situation, I can tell you all I ever saw about multi-ownerships was problems during my 15 years in real estate. One advice: if you ever get into multi-ownership situation make sure everything is in writing before you purchase the property. I mean everything!
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
RE: What's the best plan for multi-ownership? - JerryCarr - 03-20-2009
What happens if one or more parties want to sell, but the rest don't? I know of a case where this happened and things got messy. I suppose there are legal and/or contractual guidelines available for this situation, but they don't cover the emotional fallout of a deep family disagreement. Just one more thing to think about.
Cheers,
Jerry
RE: What's the best plan for multi-ownership? - John S. Rabi - 03-20-2009
Individual ownership interest can be sold but good luck finding someone who is willing to buy X% of a property! BTW, in cases like this usually the other owner(s) have the first right of refusal. As I said, have everything in writing, including things like the mentioned.
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
RE: What's the best plan for multi-ownership? - Bob Orts - 03-20-2009
And don't forget if you have multiple owners who are your beloved dear loving sibling, things can happen and you may end up being an owner with the blood sucking, gold digging, ex-wife of your loving sibling, or their whatever, like what if, shut-up, dippy child.
RE: What's the best plan for multi-ownership? - Rob Tucker - 03-20-2009
And old business rule of thumb to remember in this and all business situations:
Never get into business with someone with out determining how to get out of business with that someone.
RE: What's the best plan for multi-ownership? - Fishboy - 03-20-2009
Rob,
I like your missive, it's like one of those Will Rogers quotes.
John,
I went to your web site. Who's that guy on the left? I saw the information on tenancies, and I'm more confused than before I went there. Too many big words. The true situation is that my folks have put all us kids in their will to receive equal ownership in their homes in two states. They're snowbirds between Palm Springs and Anchorage. I need to find a joint-ownership option that will allow me to sell my portion to my siblings to avoid the inevitable family problems.
Is there a Limited Liability Partnership of some sort?
Aloha pumehana,
Brian and Mary
Lynnwood, WA\Discovery Harbour
RE: What's the best plan for multi-ownership? - John S. Rabi - 03-20-2009
Regardless of the will you still have to go through probate unless you guys take ownership before they pass away. After the probate the situation is easy, you simply prepare a quitclaim deed, give it to your siblings and record it.
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
RE: What's the best plan for multi-ownership? - hpp4me - 03-29-2009
I know several sibling sets who have done this. In one case it has worked out beautifully (so far) and involves three sisters. In the other cases we're talking about nightmare situations emerging and families being split apart. One involved several brothers suing another brother, charging fraud.
If you do the tenants in common approach you could find yourself owning with someone you don't know if a sibling sold out.