You might own your home with someone else as joint tenants with rights of survivorship or tenants in common. If you own your home as tenants in common and you want to sell, there are a few things you need to know first.
Each tenant in common is responsible for their own mortgage payments, taxes, and upkeep of the property. So, if one owner stops paying the mortgage or lets the property fall into disrepair, the other owners can’t be held liable.
Tenancy in common is an ownership arrangement where two or more people hold an undivided interest in property. This means that each person owns a share of the property and has the right to use and occupy the whole property. However, unlike joint tenancy, each tenant in common can leave their share of the property to whoever they choose in their will. That means that each owner can leave their interest to whomever they choose in their will—unlike joint tenancy with rights of survivorship, where the interest automatically goes to the surviving owner or owners.
It’s also important to note that each tenant in common can sell their interest in the property without the approval of the other owners. However, if more than 50% of the ownership wants to sell, then all owners must agree to sell. And if one owner wants to keep the property, they can buy out the other owner or owners.
If you own your home as tenants in common and you sell, you’ll need to sign a written agreement with the other owners outlining how the proceeds from the sale will be distributed. Once you find a buyer and negotiate a sales price, make sure that all owners sign off on the sale so it’s official. After that, it’s just a matter of waiting for the sale to go through and pocketing your share of the profits.
Tenants in common can sell their interest in a property at any time and without the approval of the other owners. However, if more than 50% of the ownership wants to sell, then all owners must agree to sell. And if one owner wants to keep the property, they can buy out the other owner or owners.
1. One tenant can force a sale.
If one tenant wants to sell the property, they can force a sale—even if the other tenant doesn’t want to sell. This can be a major problem if you’re not financially ready to sell or if you have sentimental attachments to the property. The solution? Make sure you have a buy-sell agreement in place that outlines what will happen if one tenant wants to sell. This way, both parties will be on the same page from the start and there will be no surprises down the road.
2. Different tenants can have different rights.
Depending on how your tenancy is structured, different tenants can have different rights when it comes to the property. For example, one tenant may have the right to live there while the other tenant only has the right to use it for investment purposes. This can obviously lead to some serious conflict down the road, so it’s important that everyone is on the same page from the start. Again, a well-drafted buy-sell agreement can help avoid these types of problems.
3. You could end up owing money to the other tenant.
If one tenant stops paying their share of the mortgage or property taxes, the other tenant could be on the hook for those expenses—and they may even end up owing money to the other tenant as a result. This is yet another reason why it’s so important to have a buy-sell agreement in place from day one. That way, if one tenant stops paying their share, the other tenant isn’t left high and dry.
If one of the tenants in common dies, their interest in the property will be inherited by their heirs according to the terms of their will. If there is no will, then their interest will be inherited by their next of kin according to state law. The other tenants in common will not have any claim to the deceased tenant’s interest in the property
Yes, a tenant in common can sell their interest in the property without the consent of the other owners. However, if more than 50% of the ownership wants to sell, then all owners must agree to sell. And if one owner wants to keep the property, they can buy out the other owner or owners.
All tenants must agree to sell the property before any sale can take place. It’s also important to consult with an experienced real estate attorney to ensure that everything is done correctly and that everyone’s interests are protected.
When you sell your share of a property that you own as tenants in common, the proceeds from the sale will be paid to you directly. However, there are some exceptions to this rule. For instance, if there is a mortgage on the property, the lender may require that the proceeds from the sale be used to pay off the outstanding balance on the loan. Another exception to this rule occurs when there are liens on the property. In this case, any proceeds from the sale will first go towards paying off the liens before being distributed to the owners.
It’s also important to note that even though you may be selling your share of the property, you may still be responsible for paying your portion of any ongoing costs associated with ownership—such as mortgage payments, insurance premiums, and repairs or renovations. This is something you’ll need to discuss with the other owners before proceeding with a sale.
Selling your property as tenants in common is a bit different than selling it as joint tenants with rights of survivorship. Make sure you understand the ownership arrangement and each person’s responsibility for the mortgage, taxes, and upkeep of the property before moving forward with a sale. If you’re ready to sell your house fast, we can help. Balsamo Homes is here to make you an offer on your property so you can move on with your life.
If you’re looking to sell your rental property quickly, you may want to consider working with a cash buyer. A cash buyer is someone who buys properties in as-is condition and can close on the deal quickly. This is a great option if you need to sell fast and don’t have the time or money to make repairs. Balsamo Homes can help you get rid of your property quickly and without any hassle. Contact us today to learn more about how we can help you!
