Posted by John Merchant on December 23, 2008 at 10:52:07:
You’re right to be concerned and to work it out now before you get into any RE deal with your friend.
It might work perfectly smoothly but could go askew if he or any dependent relative were to later claim he was legally incapacitated and you took advantage of the poor old guy.
If the “additional expense” is all that’s holding you back I’d pay that yourself for the layer of protection.
Another little safety I’ve used is to have a legally neutral 3d party, like a notary public, witness anything and everything he signs and you hire that notary and prep him/her to have some conversation with your older friend so the NP can later testify he knew exactly what he was doing, was absolutely not incapacitated in any way when he signed, etc.
I’ve seen and partici;ated in some really ugly trials where this was an issue so I"m extremely conscious of the possible derailment by claim of incap. that could later arise.
Joint Deed and Disability of one party - Posted by Joe Coscarelly
Posted by Joe Coscarelly on December 18, 2008 at 22:52:13:
Hi, I was searching the web and came across your website. My name is Joe Coscarelly, I live in Marshall, MI USA. I am considering buying a foreclosure property to fix up and sell (“flip”) with a friend. He is 77 years old and has a lot of construction skills to help me fix up the house. We are going to get a joint deed (Joint Tenancy With Full Rights of Survivorship). I just wondered what would happen if one of us became mentally disabled long-term. Would the other one on the deed have the right to sell the home in such a situation without the disabled parties consent? I talked to a local lawyer where I live and he suggested a Durable Power of Attorney but my friend is resisting this, saying it is an unnecessary expense. Just wondered if you could shed any light on this. Thank you. - Joe Coscarelly joecos@cablespeed.com