Legal Question in Business Law in California
If a co-owner of a rental property (arranged in a TIC) chooses to spend money of his/her own to have a single family dwelling inspected by the City for habitability, and issues are found requiring repair, is it the responsibility of all owners to fund these repairs or just the one who called for the inspector?
San Joaquin County, CA
2 Answers from Attorneys
I really don't know the answer to this question, but I'd guess it goes something like this: If the repairs are optional--for example, only "necessary" if the property is to be used as a rental -- no party is obliged to pay for the repairs, and they may go un-made and the property will go un-rented. In this case, any owner wanting to rent will be stuck, during the period of co-ownership, with no remedy by which to oblige the other owner to pay. If, however, the repairs are necessary as a matter of law, ordinance or local CC&Rs;, then all owners are liable for the cost of repairs, or payment of fines if the repairs are not made, in proportion to their interest as between themselves. In addition, I suppose the agency imposing the fine or penalty could pursue payment of the fine against the co-owners jointly and severally.
Another approach would be to find that a rental business partnership exists, and divide the expense in the same proportion that profits and losses are to be divided. However, not all co-ownerships of income property amount to partnerships.
Situations like this show exactly why co-ownership deals should be covered by written agreements.
A cotenant to a tenancy in common who pays for repairs is entitled to contribution from the other cotenants for the cost of repairs. If the cotenant makes improvemenst on the common property, he cannot, however, as a rule, assert a lien for contribution on the share of the other cotenants, unless the latter assented to the improvements.
Related Questions & Answers
-
What is the statute of limitation in California on reimbursment for court cost Asked 2/12/11, 8:04 pm in United States California Business Law
-
A sole proprietor business for sale with more debt than value, will new owner be... Asked 2/12/11, 11:21 am in United States California Business Law
-
The beauty product company, Dermalogica wants to cancel my account as a customer... Asked 2/11/11, 11:41 pm in United States California Business Law
-
When a company is purchased by a new owner, is the new owner responsible for... Asked 2/10/11, 5:40 pm in United States California Business Law