‘I spent money renovating it, but she thinks she's correct’: Arizona man buys out sister’s $220K share of their $440K inheritance, sells it for $750K after years of upgrades, and she suddenly demands half the profit

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  • Who is correct in this scenario?

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  • Here's the question.... My sister and I inherited property from our uncle (in Arizona), he was childless, and basically was like a 2nd dad to both of us.
  • He left us his house, and a little bit of cash, and my sister decided she did not want anything to do with the house, so I used some of the cash + my own personal $$ to buy her out.
  • Basically it was a $440K house, so I gave her $220K and I took full ownership.
  • Fast forward to today...my wife and I have done some significant upgrades to the house, and property in that area have increased in value quite significantly.
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  • I sold the house a few months ago for about $750K, and my sister thinks I pulled a fast one on her, so she thinks I owe her an additional $155K, which would be half the selling price.
  • Since I paid her half of the home's value when our uncle died, and she signed over her ownership to me, which was all done with attorneys, I told her she took what the house was worth at the time, and that my wife and I spent our money renovating it, but she thinks she's correct in wanting half of the sale price.
  • If any of y'all have ever dealt with something similar, I'd appreciate some feedback. Note: My sister and I aren't close.
  • We get along, but we're not particularly close, so I'm not really worried about this affecting our relationship.
  • It's respectful, but also not a lot of warmth from either side.
  • ?
  • Grouchy-Display-457 Tell her to consult an attorney if she doesn't believe you.
  • OP DateInteresting3762 I told her to, and I also referred her to the contract that she and I agreed to, which stated that she has zero ownership, or entitlement to any proceeds from the house. This was done in the presence of two real estate attorneys, one representing me, one representing her, because | wanted to make sure both sides came out of it with what they wanted the house for me, and the cash for her.
  • Popcornobserver She's crazy
  • OP DateInteresting3762 My wife feels the same way, and I do too.
  • Pristine_Job_7677 so you own a piece of her medical practice
  • OP DateInteresting3762 That actually is something I never thought of countering her with, but now I will if she brings it up.
  • Pristine_Job_7677 How can someone bright enough to go to med school be so stupid? Youve been paying taxes, upkeep and made renovations. She had zero responsibility for the property. But now she wants a share of profit? Insane
  • OP DateInteresting3762 Not all doctors are common sense smart.
  • karrynme What did she do with her $220k? If she had invested in Nvidia and it was worth millions would you be entitled to that increase in her inheritance? You bought the house and took a gamble, it certainly could have gone down in value (and still might). There is no moral, ethical or legal ambiguity here- you owe her nothing and should not even discuss the matter with her anymore.
  • OP DateInteresting3762 She used it to pay off her med school loans, at least a portion of it.
  • eastbaypluviophile All you need to do to find out the selling price is check Redfin or Zillow. Can't really hide it anymore.
  • OP DateInteresting3762 Yep, that too.
  • cobra443 Personally I would t have told her how much I sold it for since you aren't close. She is being childish for wanting the difference and you don't owe her anything.
  • OP Datelnteresting3762 The only reason she knew about it is because when we were together with my parents, and some other extended family, they made some offhanded comment on how I should have waited until it was worth a million bucks.
  • Bargle-Nawdle-Zouss * Was the title transferred solely to you on the deed, removing her as co-owner on the County's tax records? * How was the $440,000 value of the home at the time determined? Was this stated in the trust or the will? Were one or more local real estate agents consulted, or was a formal appraisal prepared? Assuming you've represented everything accurately and not left any details out, you are correct and she is wrong. You purchased it fair and Square, and any reasonable judge wi
  • OP DateInteresting3762 Yes, once the property was appriased, by three different appraisers, we agreed on a sale and to do the sale and title through real estate attorneys because I don't live in Arizona and wanted to make sure anything we did was done by the laws of Arizona. The three appraises were recommended by her and my separate real estate attorneys, and I gave her half of the highest appraisal. Upon me buying out her half, the title was transferred to me and my wife as the sole owners, an
  • ChelseaMan31 Sister sold her interest for 50% of fair market value. Now, years later there has been a significant increase in value after inflation and the money OP sunk into the property. No problem. OP should ask the sister if she would have stepped up to give money back if value of property had dropped by $150k?
  • OP Datelnteresting3762 Haha, I already know her answer to that. But anyways, I think based on what I am seeing, I'm 100% correct, which helps. In my family, they are siding with me, but also appearing neutral at family events, so that they can still see the grandkids etc. My parents attitude is "you two figure it out," but then my dad will say "you're right and don't give her a dime."
  • Formal-Research4531 Question: Who told her about the sale? Why did the OP told her the gross amount? Why didn't the OP tell her 'after subtracting our investment for renovations and repairs, we only made 10,000 net."
  • OP Datelnteresting3762 We were all together as a family during the summer and someone made an off hand remark about how I should have held onto the house because it probably would be worth a million bucks soon.

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