California has a joint property ownership system. This is where two or more people jointly own the property. Each joint owner has an equal share of the property. This stake comes with both rights as well as responsibilities. Even if the joint owners are related, joint property ownership can lead to disputes. California joint property ownership disputes are very common and can become quite emotional.
California allows co-ownership between any number of entities, individuals or non-profit organizations. The shares of co-owners might not be equal. Based on their investment, each co-owner has a financial interest.
California property that is owned jointly by married couples will be divided in divorce proceedings. This is not the case for other joint property owners.
Common Types of Joint Property Disputes
California courts are most likely to hear about joint property disputes in a division action. These can arise when one owner wants the other to sell, or when one of the joint owners doesn’t want the financial responsibility to the other. These disputes can be settled by requiring all joint owners sell their property and then dividing the proceeds.
There are many other types of disputes that may be resolved without the need to go to court. These are:
- Disputes about how to split or invest the profits from the property (e.g. rents earned)
- Disputes about how the property should be used, such as farming or leasing.
- Disagreements about who the joint owners are responsible to pay what expenses and improvements to land
- Joint owners can’t do activities that prevent another owner from using the property as peacefully as they should.
Joint Property Owners have legal rights
Joint property disputes are often caused by joint owners not being aware of their rights. These rights can often provide the solution to a dispute over joint property ownership. These disputes can be resolved quickly and without the need to go to court by a division attorney in California.
The right to survivorship is the most important right in jointly-owned property. A joint owner can name a beneficiary who will inherit the property after they die. If no beneficiary is named, the interest will be divided between the surviving joint owners.
Most joint property owners don’t know about the right to possess the joint property. Every joint owner is entitled to use and occupy all parts of the property. If it is not agreed upon in advance, no joint owner can exclude another joint owner from accessing an area. All agreements must be in writing
Other rights that are common to joint property owners include equal income, equal divisions of expenses and improvements, and an equal share in the proceeds if the property sells.
How to resolve disputes regarding joint property ownership
California judges rarely have to hear about joint property ownership disputes. A mediator can help you resolve most disputes. A mediator can help joint owners settle disputes such as expense sharing, right to possession, and profit sharing. The agreements will be drafted in a joint property ownership contract that will be legally binding and avoid future disputes.
Splitting or selling property is the only way to resolve other joint ownership disputes. With the assistance of an experienced California real-estate attorney, these cases can be resolved outside of court. If the parties are unable to agree on the sale or division of the property, the courts must file a partition motion. Individuals should not file a petition action without representation as an error in your claim may result in a negative outcome.
Summarized from an article by Stone & Sallus LLP.
