Dividing proceeds after a sale
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Dividing proceeds after a sale
There are 3 owners of a 2-family apartment. Currently, 1 of the owners lives in 1 of the apartments and only pays half of the value that could be gotten if rented. Is he entitled to a full third of the proceeds after a sale?
Asked on September 30, 2017 under Real Estate Law, Rhode Island
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Yes, as a 1/3 owner, he is entitled to 1/3 of the proceeds unless there had been a pre-existing written agreement with him that, in exchange for below-market-rate rent, he would receive less if/when the property was sold. Otherwise, the other owners agreed to let him pay less rent without requiring anything in return; they therefore cannot use that after the fact or retroactively to reduce his share of the proceeds.
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