# So relationship with my brother went sour



## Optimus (Apr 15, 2012)

Good morning dear CMFer,

I am new to this forum and would require your assistance on a, I guess, pretty common situation.

First of all, english wasn't my first language, it might be a bit hard for you guys to understand me :hopelessness:.

I bought a condo in the montreal area with my brother 2 years ago. We took a conventional (no-CMHC) mortgage. At first, I thought everything would turn out great as I have pretty much spent all my life with him. However, like you have already guessed, our relationship didn't work out that well for the past few months... him owing me money, unequal chores, etc...

Now that I had enough of that situation, we decided to part out. 

I wanted your opinion on what would be the less financial solution at this point.

1. Should I ask him to "donate" me his half of the condo in exchange of money? 
2. Should I simply sell the condo with the $6000 penalty?
3. Should I just leave him on the deed and the mortgage and work things up at the end of our mortgage term (3 years remaining)?

Thank you for your opinion!


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## Cal (Jun 17, 2009)

Has yor brother indicated which of those he would prefer? Is he aware that you want out of the condo situation?


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## Optimus (Apr 15, 2012)

Cal said:


> Has yor brother indicated which of those he would prefer? Is he aware that you want out of the condo situation?


Yes, he's aware that I want him out, but I also want to keep the condo.


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## kcowan (Jul 1, 2010)

Your brother remains a cosigner on the mortgage. It is your PR. When he moves out, I would get him to sign over any interest in the property pending remortgaging it. I assume you want to remain there and can afford it.


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## OhGreatGuru (May 24, 2009)

Optimus said:


> ....
> 
> I wanted your opinion on what would be the less financial solution at this point.
> 
> ...


1. There should be no question of "donating" anything. You would be buying out his share of the equity, and assuming the mortgage. You woudl have to work out how much equity you joinlty have in the condo. It might not be much after you subtract the mortgage.
3. Since your living and lending arrangments are not working, I would try to find some solution that does not leave him on title.


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## Optimus (Apr 15, 2012)

Thank you for you answers!

If I buy my brother's half off the condo, what kind of fees am i supposed to expect?

Except paying his part, I believe I am going to be taxed on any capital gain made after a FMV has been done, correct?

To summarize... lawyer/notary fee + tax on capital gain + whatever the amount that I have agreed to buy my brother's half...

Am I wrong?


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## caricole (Mar 12, 2012)

If your both living in that condo, it is considered «PRINCIPAL RESIDENCE» for both

No capital gain or loss on a principal residence, motgage interest and maintenance cost NOT DEDUCTIBLE

How much équity of each in the condo

The mortgage outstanding 50-50 ?

Will the lender accept you as the only owner for the mortgage

How much is your brother willing tp accept to sign the condo over to you

50% of the equity that is paid...minus the money he owns you ?????

So one NEW DEED OF SALE with you the only owner

One new mortgage transfer at the same running conditions as to term and interest rate

Maybe «TAXE DE BIENVENUE» 0,5% of the value transferred from your brother

Next time...choose a BETTER BROTHER......:hopelessness:


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