Legal Question in Real Estate Law in California
!/3 party of ownership defaulted
My husband and I bought a home 10 yrs. ago with a 3rd
party. Each holds 1/3 title. After only 1 1/2 yrs. of
the purchase,the other third party met someone,and
moved in with them. After 6 months they decided
they could not pay for two residents. From this point,
this party has not paid a single dime to towards
mortgage, or property taxes. Now my husband and I must
refi. We wanted to settle with the other party by
reimbursing them their downpayment, plus a bit extra.
After all of these years, this party demands 1/3 of
what the home is valued at as of this date. There has
been a high appreciation. Very significant equity.
After several yrs. of their default, can they demand
what 1/3 of the homes value as of this date? He left
the home and obligations completely by his own
choices. Due to financial obligations that could
jepordize our home, we need desperately to refi., but
do not feel that we should have to pay this party 1/3
of the current value. They will not sighn off their
name on the mortgage unless we agree to this. Does
this party have the right in d
1 Answer from Attorneys
Re: !/3 party of ownership defaulted
You should contact a real estate attorney right away to obtain assistance in preparing a demand that accurately reflects your rights. If your demands are not met, you should sue for appropriate relief.
You appear to be tenants in common. Absent an agreement to the contrary, tenants in common are entitled to joint possession of the entire premises and are liable (among the co-tenants) for a proportionate share of expenses such as taxes and maintenance. Liability on the mortgage may depend upon its exact wording; however, as between the three of you, each of you is probably responsible for a third.
A co-tenant who moves out voluntarily and does not exercise his right of possession is not entitled to 'rent' or any reduction in expenses from the co-tenants who remain in possession, nor is the non-resident co-tenant liable for costs or losses from businesses (such as farming) conducted by the residents.
The third party co-tenant here can effectively prevent re-financing on reasonable terms by being uncooperative.
A judge, jury or mediator would probably find the third party entitled to a third of the appreciation but subject to deduction of unpaid expenses, with legal interest.
If I were you. I'd assert my rights immediately and with professional assistance.
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