I plan to purchase a house with 2 other individuals.  The 3 of us will pool money together to make the down payment and each mortgage payment. I plan to opt out of the join mortgage several years later.  I will need the other 2 individuals to refinance the mortgage to pay me back my share of equity. My questions: 1) If the other 2 individuals refuse to refinance the mortgage, but I want my share of equity back, what is my recourse against the refusal? - note that the 2 of them combined for a 67% stake in the house and can vote down my request to refinance. 2) If they do agree to refinance, how do I prove that I have indeed contributed 1/3 of the downpayment and 1/3 of each mortgage payment? Thanks. Helen

pool money together to make the down payment and each mortgage payment. I plan to opt out of the join mortgage several years later.  I will need the other 2 individuals to refinance the mortgage to pay me back my share of equity. My questions: 1) If the other 2 individuals refuse to refinance the mortgage, but I want my share of equity back, what is my recourse against the refusal? - note that the 2 of them combined for a 67% stake in the house and can vote down my request to refinance. 2) If they do agree to refinance, how do I prove that I have indeed contributed 1/3 of the downpayment and 1/3 of each mortgage payment? In one sense, you're behaving prudently: before entering into a business arrangement you're considering future contingencies, including the dissolution of the arrangement. In another sense, you're behaving foolishly: you're not discussing these issues with your prospective partners and reaching an agreement. That is what you need to do: talk it over with them now, reach an agreement on the important points, and then have a lawyer put the agreement in writing. It should specify who pays what shares and the circumstances on which one party can withdraw OR be forced out by the other two. In this way, all know their rights and their obligations, and there's no occasion for hurt feelings later. Since hurt feelings in money matters lead to lawsuits, you want to avoid them. Substantial money is involved here: you'd be crazy to get into something like this without a written agreement among the three of you, drawn up by a lawyer familiar with your local laws. (Reading between the lines, it also sounds like you're already planning to back out at your convenience and you expect to force the other two to rearrange their finances to suit you. If that's the case, it's even more important to have a binding agreement in advance, or you'll find yourself in some very expensive litigation down the road.)

2) If they do agree to refinance, how do I prove that I have indeed contributed 1/3 of the downpayment and 1/3 of each mortgage payment? Equity distribution should be agreed to now and made part of the separate agreement. My experience tells me that you have a 90% shot at being VERY sorry for doing this. Good luck. -paul ianal

I plan to purchase a house with 2 other individuals.   (Goes on to describe potential problems) The key word here is plan. While you are planning, go to a lawyer and make sure that you have a partnership agreement signed by the other two parties that covers all of your issues.  This will be the best money spent.  If you do not have a signed agreement, you will be back here in several years learning about the expensive ways to answer the questions that you can deal cheaply in a contract. JH

While you are planning, go to a lawyer and make sure that you have a partnership agreement signed by the other two parties that covers all of your issues.  This will be the best money spent.  If you do not have a signed agreement, you will be back here in several years learning about the expensive ways to answer the questions that you can deal cheaply in a contract. All this advice is good, but the poster should also talk things over with a bank or other lender before getting too involved and spending on legal advice. I cannot imagine that any lending institution would give a mortgage to these three people unless there is a big down payment, enough so that the lender would be protected in default, not to speak of perfect credit history. The impossibility of a suitable down payment is suggested by the fact that three people have to pool their money to make the purchase in the first place.