Perils on an unrecorded quit claim
Q. I hope you can solve a dilemma for me. Before my dad died, he signed a quit claim deed to my younger sister and me to his summer cottage in Michigan. He gave my older sister some land. My dad had no will. Since 2002, I have opened and closed the cottage, paid all bills waiting for her reimbursement, handled all repairs and did all indoor cleaning and outdoor yard maintenance. I did all the work while she spent her two-week vacation there.
Last year, she told me she was not going to pay her share of the bills anymore (real estate tax, homeowner's insurance, phone, electric, open and closing costs and repair and maintenance, etc.) and to buy her out (she has mental issues). I cannot financially do that, nor can I pay the $3,000 per year in bills. Is there any legal course I can take? Since no will was signed, is the cottage legally all three of ours? Can I "buy" the cottage from the two-third majority of my older sister and me for next to nothing, claim title to the house and lock my sister out? She has not responded to my many e-mails or phone messages, so discussing this with her is not an option. Thank you for your advice.
A. As the property is in Michigan, my comments must be subject to review by a Michigan real estate attorney. I will, however, attempt to assist you.
You indicate your dad signed a quit claim deed, conveying the property to you and your sister. Was the deed recorded? If so, you and your sister own the property, unless some defect exists with the deed or the deed is challenged in some way. If the deed is in your possession but has not been recorded, I would suggest recording it.
Why? Because if the property simply passes per the intestacy statute of the state of Michigan (intestacy means there was no will), presuming your mother is either not alive or was not married to your father at the time of his death, the property would probably pass to you and your two sisters. If your mom was married to your dad at the time of his death, she would most likely also have an interest in the property. By recording the quit claim deed, the property vests in you and your one sister.
Let's presume either the deed was recorded or you have it recorded. Your next problem is your sister refusing to accept her share of the expenses associated with the property. If you could afford to maintain the property on your own, I might suggest simply to cover the expenses, keep an accurate log of all your payments and when the property is eventually sold, you could settle up then. You indicate, however, this is not an option.
If your sister refuses to pay her share and you cannot maintain the property on your own, your only options are to sell the property or find someone to purchase your sister's interest. If you believe you could locate someone interested in purchasing your sister's interest, you would want to have the property appraised to determine the value of her interest and to give the prospective purchaser an idea of the sale price. This third party would then need to enter into a contract with your sister to purchase her share. Be careful here, as you don't want to end up in the same situation you are in now.
If finding someone to purchase your sister's interest is not an option, then you will probably need to sell the property. Unfortunately, you will need your sister's cooperation to accomplish this, as she will most likely be required, as half owner, to execute a sales contract and the closing documents. If she will not cooperate with the sale, you would probably be required to file a partition lawsuit in the county where the property is located, requesting the court to resolve your situation.