Selling a house with two owners is easy and hard, depending on what the owners make it to be. There are several types of ownership, and each one of them has different unique exposures. Here we will unpack what you need to know if you are looking to sell your house and there is another owner besides you.
When you became part owner of a property in Arizona you were asked to elect how to take title. Married couples often choose Community Property or Community Property with Right of Survivorship.
Tenancy in Common or tenants in common is used when parties want to share ownership and not give each other survivorship rights. This is commonly used where the owners may hold different percentages of interest in the property. One might have 70% and another 2 may have 15% each.
Sole & separate Property
This is a way to hold title if someone owned the property before marriage or take title when a family member gifts a property to you. Spouses must sign a disclaimer deed when their partner acquires a property under Sole & separate title.
Trust (with a trustee)
This type of title allows AZ property to be held in a corporation or individual behaving as the trustee in a trust.
Sell Your Shares
One way to sell the house or get your money from the property is by selling your shares. As long you can find a buyer, you can transfer your share and walk away. This is only possible under some of the ways to take title in our state. Check with your attorney before initiating a sale.
Negotiate With Co-Owners
There are other types of concurrent ownership where you cannot sell your share of property without the consent of the other. An example is Community Property with Right of Survivorship. In this case, both parties are owners of the property instead of simply sharing them. Thus, they cannot sell or transfer the property if there is no consent from the other. If it seems that you are "stuck" in an ownership position that you want out of you will need the help of an attorney if the other owner (s) are unwilling to come to an agreement with you or if you simply need help parting ways amicably.
What to Do When One Owner Refuses to Sell the Property
Sometimes, you are met with difficulty in selling the entire house when one of the owners refuses to do so. In times like this, the first course of action is to negotiate with the other party for a solution. If a solution isn’t found, you can bring a lawsuit to force the other owner to sell. In this case, you will need to help of a lawyer experienced in partition suits.
Partition suits are a suit for the property to be partitioned and force its sale. By calling for a partition suit, you are effectively going to court to ask the judge to settle the matter for you. If there is no possible resolution, the parties may request the judge to instead order for the sale of the property. This will cost time and money, but the best option if all other choices are exhausted.
If you find yourself between a rock and a hard place we can refer you to several real estate attorneys who work in this line of the law. Text or call John at (480) 442-3501. You can also email John at firstname.lastname@example.org.