"Hi, H. I decided to get the sale of the property settled now, but as a buy out instead of a third party sale. Do you want to split an appraisal or each get our own and take the average?"
That's all you need to say.
Your agreement says that you split the proceeds. The proceeds are whatever is left after paying off the mortgage and any other debts. In this case, you ask the mortgage company for a pay off letter and just subtract that amount from the appraised value and subtract any other debts you are supposed to cover and pay him half of the result. He doesn't have to know how you are getting that money, that's none of his beeswax. All he has to know is the amount and the date he gets the check.
As far as I know, my H is the only one on these boards dastardly enough to force an LBS with kids to play the market to see if he can get a higher price.
If he says yes to the above, you can have your accountant's take on the capital gains issue and how to structure the buy out to make sure the cost basis is correct. You can also see if you can get a credit for half what a broker would have been paid, at least as a bargaining chip. Get the agreement signed as quickly as possible and say that he will be paid within ninety days of signature so you have time to get your DUCKS in a row. : )
Last edited by Gerda; 02/05/2104:32 PM.
I believe I will see the bounty of the Lord in the land of the living. Wait for the Lord with courage. Be stouthearted, and wait for the Lord.
