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treyball3 · Jun 11, 2007, 07:40 AM

I had a house I co-owned with a friend. I bought his half and the house is now in my name only and my wife and I are living there. My friend and I had agreed that we would get an appraisal and I would then pay him an amount equal to half the equity. He would then sign a quit claim deed, signing the ownership to just myself. We also had agreed that he would move out the first weekend in May and he said he would pay me rent for whatever part of May he lived there. Unfortunately, I didn't get this in writing. Also, I knew that once the house was officially in my name, I could have him removed, but only if he hadn't paid rent. But I didn't mention that at all to him.

On April 25th, I refinanced the loan into my name only. The appraised value wasn't quite as much as we were hoping, so I didn't have quite enough money to pay him all of what I was supposed to. But we were also getting a refund from the mortgage company from our escrow account (about $900). The check was in both of our names, and I agreed to sign that over to him when I got it (also, not in writing). On April 30th, he got his money (except the escrow check) and signed the quit claim deed. I was told that if I wanted to kick him out that I needed to wait until the quit claim deed was recorded with the county and would take about a week. I was fine with that as he was supposed to move out in a week anyway.

Well, the first weekend in May passed and he was still there. He was shopping for a house of his own but didn't want to close until the end of the month because he would have to pay interest for each day in the month. I definitely did NOT want him living there until the end of the month because I was getting married May 26th. Then I found out there were problems with the quit claim deed and that went back and forth for a long time and ended up not getting recorded until the 18th, so I couldn't have him removed. After finding out that there were paperwork problems, I told him that IF he could find a house and close around the 15th or 17th I wouldn't charge him rent and then he would have money to pay for the interest. Well, he found a house, but didn't end up closing until the 25th - the day before my wedding. It was a big mess trying to work that all out.

So, he lived there for 25 of the 31 days in May, and was still half owner for 18 of those days. He refuses to pay me any rent saying that I told him he could live there rent free (I only said if he found a house by the 15th he could live free for that half of the month). And I'm refusing to sign the check over to him until he pays me the $350 in rent he owes me (that's rounded down quite a ways too). Am I entitled to any money in this situation? He was never a tenant, and there was no lease, obviously, as he was a part owner. Am I entitled to hold that escrow check until he pays me rent? $350 is a lot of money to me right now, otherwise I might just let it go...

I'm sorry that was so long, but I figured the whole story needed to be told...

Thanks!

Lowtax4eva · Jun 11, 2007, 07:46 AM

Well, you told him he could stay rent free until (at the lastest) the 17th and he left the 25th, it's 7 days. Are you really going to try and charge him $350.00 for living at your place for 7 days more? I mean you said he was a friend...

It's up to you, if you tried to take him to small claims court it would look bad, first you agreed that if he wasn't out May 1 that he had to pay rent, then this got moved to May 15 or 17, a judge would see that you were very flexible and wonder why your making a big deal out of another week. Plus if you don't have this in writing, him agreeing to $350.00 to stay there a week, any judge would just assume you created this figure when money became tight.

treyball3 · Jun 11, 2007, 08:06 AM

Well, I told him if he could close by the 15th or 17th, it would be rent-free, as an incentive for him to leave sooner. But he didn't leave by the 17th, so as far as I'm concerned that offer was off the table. And yes, we WERE friends. Ugh... I don't know, should I just give up and give him the check? I feel like if I do that, he wins yet again. He already got the way better deal with the house situation.

Lowtax4eva · Jun 11, 2007, 08:16 AM

I don't know, I'm just trying to look at it from a neutral standing. It won't be hard for him to tell the judge you were leniant on the move out date and without something signed agreeing to any kind of rent he most likely would win if it went to trial.

See if he will agree to pay something, try to negotiate a lower figure maybe?

ScottGem · Jun 11, 2007, 08:17 AM

In the absence of anything in writing, if he sues you he might win. I would just hand over the check and wash my hands of it.

treyball3 · Jun 11, 2007, 08:22 AM

OK, sounds like I should give up on the rent thing. One other question then... The escrow check is in both of our names, and there was nothing in writing stating that I was signing it over to him. So, if he were to sue me for it, would the judge rule that we need to split it? Of course, I'm posting proof on here I guess. Haha.

LisaB4657 · Jun 11, 2007, 08:28 AM

To answer your first question, you would have a very difficult time proving to a judge that he ever agreed to enter into a tenancy agreement with you. If anything, once he signed the deed he became a guest and you were not entitled to receive rent without some kind of agreement from him. So if I were you I'd give up on the rent issue.

As for the escrow, since it was in both your names it is presumed that it is equally divided between the two of you. If you were to give him half of it then he would have a very difficult time proving to a judge that you agreed to sign over all of it to him. So if I were you I'd give him $450 and tell him to have a nice life.

BTW, congratulations on your marriage and finally getting rid of your ex-friend!

treyball3 · Jun 11, 2007, 08:59 AM

Thanks Lisa! So, I'll give up on the rent. But, another follow-up then... Since the check is in both of our names, I need his signature and/or he needs mine in order to cash it. So, I can't just "give him $450". Is there really any way short of suing each other that I'm going to be able to get this check cashed?

LisaB4657 · Jun 11, 2007, 09:03 AM

There are 3 choices:

1. He can go to the bank with you to cash it together and split it right there;

2. He can give you $450 in cash and you will sign the check and hand it to him; or

3. He can sign the check over to you and you will hand him $450 in cash.

treyball3 · Jun 11, 2007, 09:11 AM

I'll email him and see if he's willing to do any of those, but from how its gone already, I'm going to be surprised if he'll do any of the three. Thanks again Lisa! I appreciate all your help in this matter.

LisaB4657 · Jun 11, 2007, 09:14 AM

If he argues, tell him that those are the only choices and if he doesn't pick one then the check doesn't get cashed. He can get either $450 or nothing at all.

treyball3 · Jun 11, 2007, 09:26 AM

So, I guess I'm an idiot. I've emailed him before about it. And I'm sure I said something about it being in both our names and that he can't prove I'm supposed to give it to him. And I was about to just send another one with that same kind of verbage. Guess I gave him the proof he needed! All he would have to do is print out the email huh? Maybe I'll just sign the stupid thing over and be done with it. Oops...