Promissory note between friends for large sum of money

I have contributed money to maintain and upgrade a friends home which I also live in. My friends own the home and are tenants in common. We have all agreed that when the home is sold or if circumstances change (ie one of the friends passes away), I will receive 30% of the retail value or 30% of the sale of the home. Everyone agrees that documentation is required and all are willing to sign a document. What type of documentation would be best? A promissory note does not seem adequate but I do not want to pursue changing the title of the property.

Asked 20 days ago in , Ontario
Categories: Contracts

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Hamoody Hassan

Answer by Hamoody Hassan

VerifiedOntario lawyer

Such an arrnagement isa easy to secure and you should ensure you do so as if you or they become disabled or die, these will be unrealized and unsecured good intentions. You do not have to change title and could register a charge, or oitehr collateral. If you live there it is also your porincipal residence for tax purpoises. You need to see to this and consider a review of your will and power of attorney to ensure someone acting on your behalf knows what to do. I would recommend taking a 30% tenancy in common on title. Talk to your own lawyer and an accountant as there likely will be sooner or later estate and income or capital gains tax implications.  That likely would not happern if you beocme a tenant in common and live there but you would be responsible for sharing expenses for the home, absent a different wirtten agreement. Matters involving land are usually reuired to be in wriitng under the Satute of Frauds to avoid mischief. Good Luck, Hamoody Hassan, BA LLB, LSO 1979, Senior Counsel & Mediator,

Posted 20 days ago

This is general advice, not based upon any particular case, fact or law: seek individual legal advice. I can only answer generally and cannot offer an opinion about your case. If you want an objective opinion or to interview with a lawyer, check out many lawyers on the internet like our firm who offer free consultations on contingency files. You can also phone the Law Society Lawyer Referral Service directly at 1-855-947-5255 or 416-947-5255 (within the GTA), Monday - Friday, between 9 am - 5 pm. They will provide 3 names of lawyers who handle cases like yours. Good Luck! Hamoody Hassan, Senior Counsel,

Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation). Contact <a href="" target="_blank" rel="nofollow">Hamoody Hassan, Senior Counsel, </a><a href="" target="" rel=""></a><b><a href="" target="_blank" rel="nofollow"></a></b>, or search the <a href="" target="" rel="">Lawyer Directory</a>. <br>

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