I Own 50 Percent Of a Property. What Are My Rights?

About the Property Deed

The deed can be described as the legal document that conveys the title. The deed transfers or conveys title rights to the possessions in or to a different person or entity. The deed must be a physically legal document. The USA Property Code specifies the conditions for a legal conveyance of title.

A legal document known as a property deed highlights the rights and responsibilities of all parties in property ownership. Suppose you are a co-owner of a property with a 50 percent stake.

In that case, the deed should state your co-ownership rights, including the ability to access and use the property. Take part in decision-making about the property, and receive a part of any profits the property generates.

 

Property Tax Responsibilities

As a property co-owner, you must pay half of any due property taxes. The payment details for property taxes should highlight in the deed. If the deed doesn’t specify which party pays a certain part of the taxes. All parties involved should agree to ensure the taxes are complete.

 

Making Decisions about the Property

If I Own 50 Percent Of a Property. What Are My Rights? As a co-owner of the property, you have the right to make decisions regarding it. Typically, all co-owners must reach an agreement before making any modifications to the property, such as:

• Renovations,
• Repairs,
• Or other alterations.

 

The Sale of Co-Owned Property

To complete the sale of co-owned property, all co-owners must reach an agreement beforehand. So, if one of the co-owners wishes to sell the property, the approval of the other co-owners is required. If they cannot agree, the property may divide, and each co-owner can sell their respective part of it.

 

Leasing the Property

To rent out their share of the property, a co-owner must receive approval from the other co-owners. They need to discuss the tenant, the lease terms, and rental fees, and all co-owners must agree on terms before signing the lease.

 

Disputes between Co-Owners

Co-owners may disagree about several matters, such as property decisions, tax payments, and fee payments. All co-owners should collaborate to find a friendly resolution when a dispute arises. They may have to consider seeking legal counsel if they fail to agree.

 

Many People Own Property Together.

When many people own a property together, it can become a complicated legal process. As a co-owner, it is crucial to comprehend your rights and responsibilities and those of the other co-owners.

 

 

Additionally, a comprehensive agreement specifying the expectations and obligations of all parties involved in property ownership is crucial.

 

Rights as a Joint Owner of Property.

I Own 50 Percent Of a Property. What Are My Rights? One significant difference between rights is that joint tenants have the right of survivorship. This means upon the death of one joint tenant, the remaining joint tenant(s) inherit their interest in the property. In this way, many married couples choose to have their property held through joint tenancy, meaning that if one spouse dies, the other is the property owner.

Consequently, many married couples opt for joint tenancy when owning property, ensuring that if one spouse passes away, the other becomes the sole owner.

Under joint tenancy, each joint tenant qualifies to have an undivided interest, with each owning an equal share. Selling the property requires mutual agreement among the joint tenants, who must divide the sale proceeds equally.

If one joint tenant transfers their interest in the property to a new one, the joint tenancy ends, and the new owner obtains a tenancy in common.

In the event of a tenant in common’s death, their interest becomes a part of their estate and transfers according to their will, if they have one, or in the state where the property resides.

 

The Greatest Degree of Flexibility.

Tenancy in common provides CO-owners with the greatest degree of flexibility. They may hold unequal shares in the property, but each has the right to occupy and use it. Every co-owner in a tenancy in common can freely transfer their interest in the property.

Possession of co-owned real estate is one of the most significant rights granted to co-owners. It encompasses the ability to enter and use the entire property. However, a co-owner may use the entire property. The right to possession does not entitle a co-owner to occupy a specific part of the property to exclude other co-owners.

One must note that a co-owner who possesses a property does not harm the interests of another co-owner who does not have it. So, a co-owner’s property use generally does not create an adverse possession claim against those who do not use it.

If a co-owner excludes other co-owners from using the property. The co-owner in sole possession owes rent to that not in possession. It is worth noting that tenancy, in its entirety, is a property owner that only married couples can have in some states.

Some state statutes use “husband and wife,” which may exclude same-sex couples. At the same time, other states allow domestic partners to own property as tenants.

The spouses who are tenants by the entirety cannot sell or put a lien on their share of the property without the other spouse’s consent and in some states. If one spouse sues for a debt, creditors cannot use the property to settle the debt. Upon the partner’s death, the surviving becomes the only property owner, and the tenancy terminates.

 

Becoming a Property Trustee

If someone leaves or gifts you a property in their will, you must register it with the Land Registry in the usual way. Additionally, you may ask to serve as a property trustee. This involves certain rights and responsibilities related to managing the property.

Suppose the person who created the trust appoints you as a trustee. In that case, you are responsible for managing the property on behalf of the beneficiary.

Typically, the beneficiary is too young to manage their affairs, an older person needing long-term care. Or someone who lacks the physical and mental capacity to handle their affairs.

As a trustee, your rights about the property are enough to act in the beneficiary’s best interests. And these rights will highlight in the trust agreement. You cannot personally benefit, financially or otherwise, from the trust unless explicitly allowed in the trust agreement.

 

When Both of You Agree To Sell the Property

If both of you agree to sell the property, you can sell it regularly and divide the profits based on the proportion of the property you each own. However, if one of you wants to sell but the other doesn’t, the situation can be more complicated. Depending on your circumstances and whether the non-selling owner can afford to buy out the other.

If you and your co-owners hold a separate share of the property, you can apply for an order to sell the property. But, if you are a joint tenant, you will first need to convert the joint tenancy to tenants in common before applying for an order for sale, which is called ‘severance of joint tenancy.’

In any case, seeking legal advice is essential before proceeding with the sale. Especially if you plan to sell the property during a divorce and need to consider child welfare and custody arrangements.

If one of the owners needs more mental capacity to sell the property, you must apply to the Court of Protection to proceed with the sale if there is no Power of Attorney.

Remember to inform your mortgage lender and consult a broker to determine the optimal course of action if you and your co-owner have a joint mortgage.

Depending on the purchase date, there may be early repayment penalties. And the broker can also offer insight into mortgage alternatives if one owner intends to buy out the other.

 

Can a Co-owner Rent Without the Other’s Permission?

I Own 50 Percent Of a Property. What Are My Rights? A co-owner of a co-owned property cannot prevent another co-owner from accessing any part of the property. Therefore, a joint tenant or tenant in common may rent out their share to another person, but the tenant would not be entitled to occupy any part of the property exclusively.

It may be challenging to conceive of a situation where someone would want to rent a share of residential property without the right to occupy a specific area. However, if all co-owners agree, a portion of the property rent out for the exclusive use of a tenant.

In addition, a co-owner’s share of a co-owned property could be leased out for purposes other than a habitation, such as farming for economic gain. In such cases, the co-owner who leases out their share must compensate the other co-owner for their proportionate interest in the property or their portion of the lease proceeds.

Leasing a co-owned property can be complicated. And it is advisable to consult a lawyer and other co-owners before getting into a lease agreement.

 

Alternative Options for Parents to Get Their Children onto the Property without Purchasing It Together

Alternative solutions are available if you wish to assist your children in getting onto the property ladder but intend to avoid buying the property with them as co-owners.

Give a lump sum gift to help with the deposit and moving costs. If you want to assist your children in buying their dream home and cut inheritance tax in the future, a smart move would be to give them money now to contribute towards the purchase.

This way, you can provide them with financial support when they need it the most. However, it’s crucial to plan and consider this in advance to ensure that you can do it tax-free since there’s an annual tax-free gifting limit that you need to be aware of.

 

A loan –

Similarly to a lump sum gift, your children must consider the repayments when calculating their mortgage affordability. Establishing a formal loan agreement ensures all parties share the same expectations.

 

An offset mortgage –

I Own 50 Percent Of a Property. What Are My Rights? If you own a property with equity but don’t have available cash, you can borrow money against it. However, clarifying expectations with everyone involved is important.

 

Buying the estate on their behalf –

If your child cannot qualify for a mortgage. Even with financial aid, paying them a nominal rent to cover expenses may be a better alternative for parents. It is crucial to note that this would count as a second home, resulting in extra expenses during the purchase.

If you get the property with a mortgage, you must apply for a buy-to-let mortgage and pay a substantial deposit.

Understanding your rights and responsibilities as a co-owner of a property is crucial. You should familiarize yourself with your rights and ensure that you comprehend the obligations of the other co-owners.

 

Joint Real Property Ownership Disputes

If I Own 50 Percent Of a Property. To avoid disputes, it’s advisable for individuals contemplating co-ownership of property to consider various factors, such as decision-making procedures, dispute resolution methods, rights of first refusal, and provisions for covering unpaid expenses.

Once these factors have been evaluated, they can create a binding contract that outlines the agreed-upon terms. Consulting a real property lawyer who can identify potential issues and provide sensible solutions is also recommended.

If no written agreement is available and a dispute arises, co-owners may agree for one of them to buy out the others or sell the property and divide the proceeds as per the law. If co-owners can’t agree, they may resort to a court proceeding known as a partition action. In which the court divides the property or the proceeds from its sale.

The two possible types of the division include physically splitting the property among co-owners or ordering its sale and dividing the proceeds. In the case of married and divorced co-owners, property issues decide in the family law courts.

 

Bottom Line.

An experienced property lawyer can provide valuable assistance while purchasing a property. They can tell buyers whether common ownership is appropriate and, if so, which form would most suit their needs.

Additionally, they can assist in creating a co-ownership agreement that could prevent future problems between co-owners. A lawyer can help resolve disputes between co-owners and provide options for moving forward.

Co-ownership can be particularly complex, especially between individuals who are not married, and seeking advice from a real estate lawyer is highly recommended. A qualified lawyer can address issues such as:

• Formation,
• Termination,
• Co-tenants’ obligations towards each other,
• And disputes among co-owners may arise.