Legal Question in Real Estate Law in California
right of ownership
I own a 1/4 interest of 30 acres of property with my 3 sisters. My brother-in-law has a car parts and car collection on at least 5 acres of the property. If he sells any cars or car parts, am I legally entitled to 1/4 of the proceeds?
4 Answers from Attorneys
Re: right of ownership
No. Not unless you have an agreement with him that he pays you a portion of each sale.
Re: right of ownership
Probably not but you probably have the right to run a business there, too.
I say "probably" because some facts COULD exist in your situation which might change the analysis.
Re: right of ownership
Generally, no!. There might be some exceptions in unusual circumstances, such as mineral rights if oil is discovered under the property.
Re: right of ownership
The general rule with respect to co-owned property (whether by tenancy in common or joint tenancy) is that each co-owner may occupy and use the entire parcel without liability to the other owners for rent for the land used, nor for a share of the profits derived from operation of the business. So, in theory, your brother could spread his car collection over the entire thirty acres without owing anybody anything.
A corollary rule provides that if a co-owner derives profits from renting to a third party, he or she must share the net profits with the other owners. Another related rule says that exploitation of finite resources such as minerals would require sharing of the profits among all owners.
There may be an exception in the case of a co-owner who has been "ousted;" that is to say, excluded from his or her right to co-occupy the property by force or fear.
Unhappy cotenants have a right to sue for partition, which is judicial division of the property either by dividing it into smaller parcels or selling it and dividing the net proceeds according to what the court finds "fair" after taking exidence on the matter.
All of these rules can be modified by contract between the owners.
The rules originate in common law and as far as I know are not found in the codes in California. Further, the rules have been modified by statute in at least a half dozen states other than California, so LawGuru readers from other states should inquire locally.