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Real Estate Help - Multi-family Land "Fair Use"

Discussion in 'Bad Dog Cafe' started by gusfinley, Dec 1, 2020.

  1. Blues Twanger

    Blues Twanger Tele-Meister

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    Lawyer and LLC if she want to stay in.

    Otherwise cash out with the other siblings.

    Inheriting a shared portion of a shared portion of half an acre is more trouble than it's worth.
     
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  2. gusfinley

    gusfinley Tele-Afflicted

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    Half Acre

    There is shed with a toilet in it, a pavillion and a few Camping trailers. The Shed with a toilet was built 30 years ago. Most people bring tents to the property who don't already have a trailer there.

    Yes, a large family usually rents it for one week for about $1000.

    No.

    It doesn't get used much. My parents go about twice a year. One sibling lives out of state, so he doesn't use it. One sibling (non-owner) and his family use it and trade labor (yard maintenance) for a free stay.

    about $1000 per year per owner.

    Of owners: probably, only my Mom. But nobody is thinking about the future. Two of the siblings don't have kids. One does but nobody lives within 300 miles of the lake. One non-owner sibling would like to buy in and uses the property and wants to make improvements, but his wife won't let him buy in.
     
  3. Edgar Allan Presley

    Edgar Allan Presley Friend of Leo's

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    I litigate real estate cases, and litigating these issues is super fun for me. It's also way more expensive than getting a lawyer at the front end and putting sensible and enforceable restrictive covenants in place that bind all the owners.

    I have two pieces of advice, and they're contradictory: (1) get a lawyer--it's cheaper than having to litigate it later, and (2) in a matter of real estate law, don't follow anyone's advice on a telecaster forum. Do-it-yourself agreements among family members is why I can afford nice guitars, so thanks to those who've recommended it. If you go that route, it will make several litigators very happy.
     
  4. ronzhd

    ronzhd Tele-Holic Ad Free Member

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    Exactly, well stated sir. It aint ever pretty......
     
  5. beanluc

    beanluc Tele-Holic

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    My MIL has been going through the exact same thing.

    What she's doing is, having a lawyer draft an agreement for the other 2 co-owners to sign, which absolves her of any responsibility for taxes, maintenance, or anything else that requires her time or expense, and also vaives her right to any time visiting the property unless she wants to do it through Air B&B like any other schmuck.

    But she retains her ownership, can will it to my wife and sistern in law or whoever she wants to, and if and when that property EVER gets sold, whoever owns this 1/3 share at that time will get half the proceeds of the 1/3 share.

    So she and her heirs are 100% free of all the headaches and bickering forever, and still will get something from any eventual sale.

    This is an oceanfront property on Puget Sound. Been in the family 90 years.

    It beats trying to force the other owners to buy her 1/3 share out.
     
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  6. gusfinley

    gusfinley Tele-Afflicted

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    Thank you, for your comment. It made me laugh.

    I know the fallacies of seeking legal advice on a guitar forum.

    My interest in this is:

    1) To ease the pressure on my mother from her siblings to join an LLC.

    2) To ensure that my family is given fair use of the property as long as my mother is an owner.

    3) To fix this mess up front, so that I don't have to deal with having 6 people inherit 1/4 of a property when my parents are gone.
     
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  7. Edgar Allan Presley

    Edgar Allan Presley Friend of Leo's

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    Very wise. Better to get understanding up front. On the LLC issue, a lawyer could tell you if it's a big deal or not, depending on premises liability laws in the state where the property is and other relevant factors. It may be something easy your mom can give in on later in exchange for a good agreement ensuring she gets a fair share of the use and everyone shares the maintenance, etc., in a practical and fair way. Or the LLC operating agreement itself could be a vehicle for protecting your mother's interests. It's better to deal with it proactively now before any major dispute happens.
     
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  8. gusfinley

    gusfinley Tele-Afflicted

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    The LLC idea came from one of the owners at the advice of his lawyer friend. I don't think it necessarily in the best interest of the owners, but certainly for my uncle's lawyer friend. Since my uncle is the youngest sibling chances are that this lawyer friend will get to help with litigation also.
     
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