Full question:
We have purchased a home with our son and daughter-in-law. He would like to put a loan on it to buy another home. At our age we don't want to be responsible for the loan. Do we need to deed our ownership over to him and if so how do we do that? We have only owned the home for six months.
- Category: Real Property
- Subcategory: Joint Tenants
- Date:
- State: California
Answer:
In the terms of joint tenancy the owners own all the property and their interests are not subject to division. There are certain conditions and rules that apply with this kind. First, they must be able to make decisions jointly in connection with the property such as about to sell it. Any other issues about the property must be jointly decided. For example, taking out a second mortgage would have to be jointly decided on and applied for under joint tenancy.
Tenancy in common is slightly different from joint tenancy. Under tenancy in common individuals may own pieces or shares of the property. The shares may or may not be equal. When it comes to the subject of selling property one person can decide to sell their part of the property, take out a second mortgage, or do whatever they want with their share. It is owned as a separate entity in many respects from the other person's portion. Tenants in common can separately get a loan and if the property secures the loan, the creditor may only collect out of the ownership share of the debtor. However, the property may be forced to be sold with the proceeds divided among the creditor and remaining owners.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
