Terminating Joint Tenancy For Real Estate Transactions
By: Tilden Moschetti
Terminating joint tenancy is often associated with estate planning documents. If a property owner, for instance, named only one of his or her children as a joint tenant (on the deed to a certain real estate property) but later creates a will stating that all of the children should have an equal share, the deed would override the will. This means that the child would have no legal obligations to follow the terms of the will and the entire interest in the property would be passed to that one child who was listed as a joint tenant on the will. This can lead to very complicated proceedings and negotiations. Such is especially true if the property in question will be part of a real estate transaction.
The twists and turns of the residential real estate market in California can be quite difficult to understand. Whether it is residential real estate or commercial real estate business, both home buyers and sellers must take into account relevant real estate law and exercise diligence and caution to make sure that things will go as planned. 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 those related to a home purchase and sale. A number of these are on a property for sale by the owner, or when an individual has plans of selling real estate but is facing various complications. An example of such a complicated circumstance is negotiating, buying, or selling property that is part of a joint tenancy. One should be aware that there are local challenges and certain difficulties that may arise when proceeding with such a negotiation.
Dealing with a real estate broker or agent
Licensed real estate agents and brokers play a crucial role in the purchase of real estate, both when 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. They can guide you when selling a home and can help you jumpstart a real estate purchase.
He or she can also help you get the services of a real estate professional that you will need for different purposes. A home inspector, for instance, is necessary for the inspection contingency in the real estate sales contract, while a home buyer would need a qualified appraiser for the required appraisal. He or she may even give leads for good mortgage loan lenders, especially since lenders will play a vital role in your would-be real estate investment.
When a joint tenancy is undesirable
An individual should seriously consider terminating joint tenancy if he or she 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. All these will influence future transactions involving real estate property in such a joint tenancy.
In any of the above, or similar instances when joint tenants cannot agree on certain matters of management and upkeep of specific properties, terminating the joint tenancy might be the best option. The actual outcome of JTWROS will likely be contrary to the joint tenants’ current wishes or plans. 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 would pass to the ex-spouse (and not to the children or a new spouse). All these should be taken into account whenever buying or selling property.
The need for experienced Calabasas real estate lawyers
A good local attorney can help with paperwork involving real estate contract provisions. Aside from giving legal advice, they can help ensure that the one selling real estate complies with relevant statutes and can answer your questions on escrow, transfer tax, closings, or real estate title insurance. Reliable legal services are also crucial if you want to avoid real estate disputes and possibly real estate litigation.
Note that provisions of real property law are in place for the best interests of both parties. When faced with legal questions concerning real estate, reach out to reliable law offices covering these areas of law.
For inquiries related to real estate information or for other real estate needs, contact our law firm. Call our Calabasas real estate attorney at Moschetti Law Group for legal representation and advice.
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.