Legal Question in Real Estate Law in California

Re: Real Estate Law

Presuming that a bank would agree to finace just one owner (rare, but possible), just one owner could encumber his 1/2 interest in the property. The other owner's interest cannot be legally affected. The joint tenancy would be severed and the parties would hold the property as tenants in common.

There are several important exceptions to this, however. For example, if the parties have a parnership agreement or marriage the other partner may be able to obtain a court order preventing the encumbrance based upon a breach of agreement or breach of fiduciary duty theory. You would need to have a consult with an attorney to get an accurate answer.