Real estate transactions must be taken very seriously. From real estate brokerage up to the preparation of closing documents, a lot of money and paperwork are involved. Get the legal services of a good local attorney who can ensure that the one selling real estate complies with relevant statutes, help you avoid real estate disputes, and deal with possible real estate litigation. Consult with a trusted Calabasas real estate lawyer who can give legal advice and answer queries on escrow, transfer tax, closings, title insurance, or other provisions of the real estate contract.
Note that provisions of real property law are in place for the best interests of both parties. However, there are other areas of law that factor in when entering negotiations concerning real estate. This article will focus on:
Most of the time, severing joint tenancy comes into the picture when estate planning documents are discussed. Take for example a property owner who, on the deed to certain real estate property, named only one of his or her children as a joint tenant. Even if he or she later creates a will stating otherwise (all of the children should have an equal share) the deed would be followed. It will override the will and the child earlier named as a joint tenant would get the entire interest in the property. That is unless the joint tenancy is severed.
In contrast to the above, joint tenancy may be severed specifically so that only one individual will own the entire interest in the property.
In cases where joint tenants agree to severe the tenancy, one of them may simply opt to file a new deed with the county recorder. The deed ‘gifts’ or transfers the property to the other joint tenant, with no one else having a right of survivorship. This is generally a smooth process, except for the fact that the property will likely be treated as a taxable gift under federal transfer tax law. An individual receiving a gift worth $15,000 and above is required to file a gift tax return.
Why This Should Be Taken Into Account in Home Buying and Selling
Whether it is a commercial real estate business or transactions in the residential real estate market, home buyers and sellers must take into account relevant real estate law. Both when buying or selling property, one must exercise utmost caution and diligence to ensure that things will go as planned. Keep in mind that joint tenancy could lead to very complicated proceedings, especially if the property will be part of a real estate transaction. Here, a reliable Calabasas real estate attorney can help make things clearer.
Many real estate attorneys get a lot of inquiries from real estate buyers or sellers. Home purchase and sale is not something that should be taken lightly, and one must look into various aspects of the property for sale by the owner. A common example of a complicated circumstance is negotiating with an individual selling real estate that is part of a joint tenancy. If things weren’t ironed out, proceeding with such a negotiation could come with challenges and certain difficulties.
When It’s Best to Severe Joint Tenancy
Generally, joint tenancy should be severed if the individual in question is undergoing a divorce, or if a spouse in a second marriage wants to leave his or her joint tenancy interest in the married couple’s home (specifically to the children from the first marriage instead of to the spouse). The same is true if one joint tenant wants to sell the property but the other joint owner is refusing to sell, or if a joint tenant has a change of mind about who should receive that joint tenant’s property interest when he or she passes away. In any of the above, it might be best to sever the joint tenancy.
Take for instance a divorcing couple who continued to own property as joint tenants. When they pass away, the deceased spouse’s interest in the property goes neither to the children nor a new spouse, but to the ex-spouse. This is why one should be extra careful when buying or selling property. All details, even those that may seem trivial, should be carefully examined. Purchase of real estate must be done with caution and with the help of experts.
The Need for Calabasas Real Estate Lawyers from Trusted Law Offices
Licensed real estate agents and brokers play a crucial role if you are buying and selling a home. A real estate broker or real estate agent will have access to homes that are in the local multiple listing service, can guide you when selling a home, and can help you jumpstart a real estate purchase. However, they will likely not be as knowledgeable about real estate laws.
At Moschetti Law Group, our practice serves the needs of Founders by providing real estate law and real estate syndication attorney services to Founders. Whether you are the Founder of a real estate empire or building a business and need assistance with purchase and sales, real estate transactions, or real estate litigation, we serve Los Angeles County, eastern Ventura County, and North Orange County from our office in Calabasas. We also have a primary focus on helping Real Estate Syndication Founders throughout the United States with forming their syndication, understanding crowdfunding, private placement memorandums, and operating agreements.