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Does the $ amount of renovations make a difference?

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  • #16
    Thanks for the advice Dad

    Unfortunately, he is proposing we either get a certified appraisal and I buy him out for 1/2 the appraised value or immediately put house up for sale, and there is no stipulation as to what happens after sale...I would expect the mortgage by paid out and we split the difference, but at this point I would also expect he assumes we split the difference before mortgage paid out and I am left with nothing.....the mortgage is only 72K at this point, but if we are able to sell house for 140k, then I would be left with only enough to pay off mortgage. This is why I feel I need to prove we were infact common-law even with only 18 months living together!
    Point of interest, the lawyer, at the time of doing up the Deed with his name on it, 2006, put on the Deed that The parties were spouses as defined in the Family Law Act and therefore no tax was payable. I understand the difference between CCRC requirements for common-law and the Family Act requirments, however if the lawyer is quoting Section 29 of the Family Act on the Deed, then perhaps it gives me a leg to stand on. We also hold the vehicle lease 2005 in both our names as well as the insurance on the vehicle. I believe all that points to the relationship as being a Permanent Relationship, and more than simply joint tenants.
    Then we look at the kids. My kids, however he did act as Parent in Loco. Signing school forms, attending Mental Health Meetings for my son with me, and being referred to by the kids as their step-father. Again, a permanent relationship, even though we were only living together 18 months, the other issues go back 4 years.
    Just some of the thoughts whirling through my brain at this point!

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    • #17
      Originally posted by Onceagain View Post
      Paris
      Thanks for your thoughts, your worst case scenario actually seems to me to be the best case scenario!!
      Dad
      I will look into that!! And you are right about requalifying, I quit a job just after the last renewal, went back to school and have a new job, but my income is lower than before, I'm just hoping that as I have good credit with the bank, and I have no other outstanding debt other than the house and the car, they will continue to want to do buisness with me!!
      As a person who has been in the mortgage business, since the stocks began to fall in Oct, there have been 13 lending institutions that have left Canada. The major lending institutions have made it more and more difficult for people to obtain credit. If you have never defaulted on your mortgage payments but on other creditor you may have had a late payment or two they look at that very seriously now. Your best bet is to go to a mortgage broker rather than a bank. Mortgage brokers have a number of lending institutions available to them. I will give you an example my brother in law to be just before the market falling in Oct was to renew his mortgage he too changed jobs and was making much less then before his wife still had the same job their income went from 80K to 50K huge difference. The bank would renew but at 5.75% and would not lower that rate even though the both of them had excellent credit scores in the high 700's and never late on any payments to any creditor. A mortgage broker got them their mortgage just before the banks changed their prime rate lending from prime minus to prime plus. They ended up with a mortgage of prime - .50% and a line of credit with prime +1%. so they are pay only about 2.5% on their mortgage and 3.5% on their line of credit. It pays to shop around with a mortgage broker. If you go it alone and go from one lending institution to another there will be a tracking on your credit file that will show where you have been looking for credit and the more your file is pulled that too will lower your credit score. Hope that helps you out.

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      • #18
        Originally posted by dadtotheend View Post
        Yes, the lawyer is playing hardball trying to intimidate you into settling. My ex left the house and she had her lawyer continue to send me letters for months and months requiring that the house be put on the market. She did this because the kids were still here and she wanted to uproot them from the only home they have ever known to strengthen her custody argument.

        There's a hardly any chance that a judge will order the sale when the kids live there. They are making baseless threats. It must anger and frustrate you that they would be so prickish as to do that. Stay calm and rational - don't fall into a trap and respond with emotion. Just say that the kids need the home and that you don't agree with the sale.

        Regarding him not being on the mortgage, I would be a little scared on that too, but I wouldn't worry. In the end you will be staying in that house and nothing is going to happen to it for as long as you want. You can wait him out for many years and not sell the house. Eventually you will settle and the fair outcome will prevail i.e. that the numbers will be calculated as if he was placed on the mortgage at the same time as he was placed on title.

        BTW, I don't understand why the bank consented to having him on title but not the mortgage.
        Regarding the mortgage end of it.... the lending institution holding the mortgage must be paid out regardless before anyone get any profit from the home. They have a lien on the property, in a nut shell they do not care what is going on between the two of you just that they get paid. They would have to sign release of the mortgage. Secondly if there is no equity on the home or much of one.... no one get anything and your out on the street so to speak with your children. I am sure the courts will not be overly impressed with that considering the relationship and how everything went to this point with him.

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        • #19
          The amount contributed for renovations only makes a difference if it increased the value of the home. The onus is on him to prove the increase. The chances of winning an unjust enrichment claim are slim. It will cost him more than the renovations did.
          Since his name is only on the title and has been there for the last 2 and a half years, he can only claim the increase in value for that time period.
          Good luck and don't worry. Piece of advice do as much advance homework as you can before you go to the lawyer. ie home appraisal or market evaluation for the time he moved in. A real estate agent could give you this info for free.

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