I co own a house in Daly City, CA and the person wants to buy me out. There has been a proposal to buy me out and it included a brokers fee, transfer fees, and other fees. Why does this have to be part of the equation when we aren't selling the house? What else can I include in the equation to ensure that this is a fair buyout?
In a buyout situation, brokers fees are not a reasonable fee if no fee is being paid. As to transfer fees and escrow costs (if you use an escrow), those can and should be equally shared. And since it is real property, everything must be in writing to be enforceable.
a standard buyout agreement when I handle them is reduced to a written settlement agreement and would include perhaps some transfer and rerecording of deeds expenses at the county recorders office which the parties can negotiate who pays. Generally, there are not broker fees in a case like this since not being sold to 3rd party. You can and perhaps should do this through an escrow if you have concerns about this persons ability to pay. If there is money being paid over time you will need a promissory note secured with deeds against all property including this one.
How much are you selling the house for and is it all being paid up front?
You really need to spend some money and hire a reasonably priced lawyer to make sure everything is done properly
It depends if you are in a partnership relationship or this is part of a marital dissolution action. Different rules could apply.
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