Wanted opinion on the scenario below. We already have an attorney in the state where this occured but curious to see what others think about how it will play out.
10 years ago, unmarried couple buys a house together where both are on the mortgage and the deed but deed is for joint tenancy
Few years after buying the house they have a joint venture agreement drawn up that states if there is a break up or death that after 1 year of split/death the property will be sold and profit split 50/50. During that 1 year both or estate of deceased is responsible for their portion of the mortgage. In order to pay for that they are both going to get a life insurance policy that will cover their half in the event of death
Within year of signing the JVA, one of the parties is diagnosed with cancer and had not gotten insurance and now can't because of diagnosis. However, they have plenty of money in bank to pay for their half of the mortgage well beyond 1 year of death as JVA states
Fast forward to 2019, the party without cancer no longer wants to be in relationship and take care of their partner so they essentially dissolve the relationship. Person with cancer is very near end of life and can no longer take care of themself and is forced to move in with one of their adult children
POA for the sick person is in conversation with the other party about what to do with the house. That party said they want to work through it and either buy the other person out or sell it. POA & other party agree on a decision date of 09/15/2019. That day comes and goes & POA does not hear from other party. On 09/18/2019, POA receives a letter from other party stating their is a JVA in place with terms listed above & that party expects POA to comply. First time POA was made aware of any agreement and person with cancer is too far gone to discuss it. POA hires an attorney and turns the letter & JVA over to the attorney
10/24/2019 person with cancer passes. Attorney for POA now the Estate notifies other party about the death. No response from other party. On 01/06/2020 attorney for other party contacts attorney for Estate and says JVA is not valid bc person with cancer didn't comply with terms of getting insurance and since deed is for joint tenancy his client is now 100% rightful owner & Estate has no claim. Attorney for Estate says JVA is in fact good because it is a legal document and there is plenty of money to cover 1 year of mortgage as JVA states that it should
Thoughts on this is likely to play out?
10 years ago, unmarried couple buys a house together where both are on the mortgage and the deed but deed is for joint tenancy
Few years after buying the house they have a joint venture agreement drawn up that states if there is a break up or death that after 1 year of split/death the property will be sold and profit split 50/50. During that 1 year both or estate of deceased is responsible for their portion of the mortgage. In order to pay for that they are both going to get a life insurance policy that will cover their half in the event of death
Within year of signing the JVA, one of the parties is diagnosed with cancer and had not gotten insurance and now can't because of diagnosis. However, they have plenty of money in bank to pay for their half of the mortgage well beyond 1 year of death as JVA states
Fast forward to 2019, the party without cancer no longer wants to be in relationship and take care of their partner so they essentially dissolve the relationship. Person with cancer is very near end of life and can no longer take care of themself and is forced to move in with one of their adult children
POA for the sick person is in conversation with the other party about what to do with the house. That party said they want to work through it and either buy the other person out or sell it. POA & other party agree on a decision date of 09/15/2019. That day comes and goes & POA does not hear from other party. On 09/18/2019, POA receives a letter from other party stating their is a JVA in place with terms listed above & that party expects POA to comply. First time POA was made aware of any agreement and person with cancer is too far gone to discuss it. POA hires an attorney and turns the letter & JVA over to the attorney
10/24/2019 person with cancer passes. Attorney for POA now the Estate notifies other party about the death. No response from other party. On 01/06/2020 attorney for other party contacts attorney for Estate and says JVA is not valid bc person with cancer didn't comply with terms of getting insurance and since deed is for joint tenancy his client is now 100% rightful owner & Estate has no claim. Attorney for Estate says JVA is in fact good because it is a legal document and there is plenty of money to cover 1 year of mortgage as JVA states that it should
Thoughts on this is likely to play out?
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