Joint Ownership Of Property One Wants To Sell
Joint Ownership Of Property One Wants To Sell
In a joint tenancy, all owners have an equal stake in the property, and if one owner dies, their share automatically goes to the surviving owners.
If one co-owner wants to sell the property and the other does not, the owner who wants to sell can sell their interest to the other owner. If the other owner does not want to buy the share, the owner who wants to sell can initiate a legal process known as a partition action. In a partition action, the court can force the sale of the property and divide the proceeds among the co-owners.
The process of a partition action typically involves the appointment of a referee who oversees the sale of the property. The costs associated with the partition action, such as attorney’s fees, referee expenses, title report costs, and other disbursements or expenses, may be recovered from the sale proceeds as determined by the court
It’s important to note that the laws governing joint ownership and the process of selling a jointly owned property can vary by state. For instance, in California, a partition action can be initiated by any co-owner, regardless of their share in the property.
In Michigan, a single tenant can sell their interest in the property, or all of the tenants could agree to sever the joint tenancy, making it a tenancy in common
In Indiana, a tenant in common can sell, mortgage, transfer, or assign their share of the property without the consent of the other owners
Can A Jointly Owned Property Be Sold By One Owner?
Yes, a jointly owned property can potentially be sold by one of the owners, but there are some important caveats to keep in mind:
- The type of joint ownership matters. If the property is owned as joint tenants with right of survivorship, one owner cannot unilaterally sell the property without the consent of the other owners. However, if the property is owned as tenants in common, each owner has an undivided interest and can sell their share without consent.
- Local laws may restrict an owner’s ability to sell. Some states require all owners to consent to a sale, even if the property is held as tenants in common. Additionally, if the property is subject to a mortgage or lien, the lender’s consent may be required as well.
- Practical issues come into play. Even if one owner legally can sell without consent, it may be difficult to actually do so. Most buyers will want clear title and for all owners to sign sale documents. And co-owners could sue to block a sale or force a partition if they do not agree.
- Proceeds must be distributed equitably. If one co-owner does sell their interest, they must fairly compensate the other owners for their shares based on actual property value.
Can A Joint Tenant Sell Their Share Of The Property Without The Consent Of The Other Owners?
In a joint tenancy, each co-owner shares an equal percentage interest in the property. A joint tenant can sell their share of the property without the consent of the other co-owners. However, the sale of a joint tenant’s share to a third party would sever the joint tenancy and turn it into a tenancy in common.
This means that the new owner would become a tenant in common with the remaining joint tenants. It’s important to note that while legally a joint tenant can sell their share without the consent of the other co-owners, it may be practically difficult to find a buyer interested in purchasing that interest.
This is because few people may be interested in buying a partial interest in real estate that they would effectively co-own with strangers. If a joint tenant wants to sell their share but the other owners do not agree to the sale, the joint tenant can file a partition action in court.
This is a legal action to divide the property or force its sale. The court can order the property to be sold and the proceeds divided among the owners. However, this process can be complex and lengthy, especially if the property cannot be practically divided, such as a house.
