Question by Joanna:
My brother and I have inherited a legal 3-family house. My brother would like to be the landlord and rent the apartments but cannot afford to buy me out. I do not need the money but would like to retain my share of the house as an asset. Is it possible for me to keep it as an asset without making my brother pay me, and yet make him solely responsible for taxes, insurance and so on? I do not want the responsibility of ownership of this property as I have my own house but would like to help my brother.
Answer By William Bronchick:
Each co-owner has a right to occupy the property, so it would be perfectly ok to allow him to live rent-free. It will be just as proper to insist that all three units be rented and for him to pay rent. In lieu of that, you can agree that he live in one unit for free and manage the property, so long as he pays the taxes and insurance.
It would be a good idea for you to put such an agreement in writing.
Disclaimer: The foregoing is not intended to be given as legal, financial or tax advice, but intended for instructional use only. If you require legal, financial or tax advice you should seek the assistance of a qualified professional.
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