How do co-owners of a house detemine a buyout price?

My mother recently passed away. My brother had a contract, carried by my mother to buy her house. During probate, my stepfather signed the house over to my brother and I equally. When we figure out the value at which he will buy me out, do we use the value of the house minus what he has paid off or the value of the contract he had?

Asked on July 29, 2014 under Real Estate Law, Washington

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

There is actually no legal rule or formula for this; since it would be voluntary for him to offer and you to accept, it must be a price that you both agree to. The two options you suggest are certainly resonable ways to determine value--you can use either, or come to something in the middle of the values they yield (i.e. a compromise value). Again, if you and your brother agree to it, that is all that matters.


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