I borrowed $100,000 from my sister to buy a house at $300,000 in my name only 20 years ago. I paid property tax all by myself in 20 years. The house is now worthy of $800,000 and I want to sell it. My sister claims she owns 33% of the house and she is entitled to 33% of the sale income.
It's been 20 years and you never paid her back? Wow!
You're lucky she's only asking for a third.
The prevailing simple interest rate in 1996 was approximately 8.75% (give or take). After 20 years, you would owe your sister $275,000 based in the prevailing interest rate.
One third of $800,000 = $266,666,67.
I'd say you're getting off cheap!
And that was only SIMPLE interest. If the interest was compounded, you'd owe more than $535,000.
Of course, she has no OWNERSHIP interest in the property, so she cannot disgorge you of $266,666.67.
But she CAN sue you.
I would add that if you don't do right by your sister, it will make for a very uncomfortable Thanksgiving Day table.
This reply is made in response to a question posted on a public message board. This response is for general information only. This response does not create an attorney-client relationship. You have not hired the responding attorney and the responding attorney has not agreed to represent you.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline