Dear Quentin, My in-laws helped my wife and me purchase a home that we all live in, including my teenager. They provided $300,000, and we bought the home for just over $500,000. All four of us — my wife and I and my in-laws — are on the deed and the loan. I am currently paying the mortgage. We live in an equitable-distribution state.
My in-laws now want me and my wife to sign a document stating that, should we sell the house at any time, now or in the future, whether they are alive or dead, we will give a fixed amount of $125,000 of the initial proceeds to their adult granddaughter — our niece — who lives in another state. This will reduce their investment in the home to $175,000. I said we could not sign this because it effectively constitutes a legal claim, a lien on the property, similar to that of a lender. Such a claim can be filed with the county and can harm attempts at refinancing or obtaining a home-equity line of credit that might be needed for improvements and repairs. I said we could maybe work out a percentage, after costs, etc., to disburse if we sell, but no fi …
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My in-laws now want me and my wife to sign a document stating that, should we sell the house at any time, now or in the future, whether they are alive or dead, we will give a fixed amount of $125,000 of the initial proceeds to their adult granddaughter — our niece — who lives in another state. This will reduce their investment in the home to $175,000. I said we could not sign this because it effectively constitutes a legal claim, a lien on the property, similar to that of a lender. Such a claim can be filed with the county and can harm attempts at refinancing or obtaining a home-equity line of credit that might be needed for improvements and repairs. I said we could maybe work out a percentage, after costs, etc., to disburse if we sell, but no fi …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]