Legal Question in Real Estate Law in California
Selling property held as Joint Tenants with siblings
Rather than leaving property in trust for myself and two brothers my father signed us on as joint tenants prior to his death. he has since passed away and communication between the three of us has completely broken down. One of the brothers and I have occupied the property for 20 years and now the third brother (who has always agreed to our having posession) is threatening to take us to court and have a judge order the property sold. Is this possible?
4 Answers from Attorneys
Re: Selling property held as Joint Tenants with siblings
Yes it is possible. You should probably try to buy his portion, as I am sure that all he really wants is his share in the form of cash.
Re: Selling property held as Joint Tenants with siblings
Yes, it is called a partition action. The court may not order the property sold, instead they may order a buyout. You may contact me.
Re: Selling property held as Joint Tenants with siblings
Yes, it is called a partition action.
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Re: Selling property held as Joint Tenants with siblings
Yes, it is possible.
The general rule of law is that any co-owner may bring an action (lawsuit) against the others for what is called "partition." The name goes back to early times when real property could, usually, just be split into pieces.
Nowadays, with small lots, high-value improvements, and laws restricting subdivision, courts will more often order the co-owned property sold and the net proceeds divided fairly.
The sale is usually done under indirect court supervision through the normal listing process, rather that a courthouse-steps auction, and in fact the co-owners frequently settle out of court before the partition lawsuit proceeds to final judgment.
Partition is a co-owner's absolute right, but the right can be waived or forfeited under certain circumstances, and these circumstances can sometimes be raised as a defense to a partition suit. One frequent form of waiver is an express written agreement between the co-owners, e.g. an agreement to keep the ranch in the family, or an agreement giving one owner a right of first refusal, and so on.
Every co-owner has the right to co-occupy the house without paying rent. However, net rent received from a non-owner must be shared, and an owner who pays expenses or makes repairs or improvements is usually entitled to reimbursement from non-contributing owners.
You should probably consult a real estate lawyer to see if you can head off the suit by negotiations. Sounds like a buy-out should be offered to the non-occupant brother. A lawyer could go through the financial and legal history of your co-ownership and advise you of how you might come out in a partition, i.e. net proceeds to you after selling costs, lien pay-offs, and adjustments for expenses paid, etc.