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  1. #1

    Default Who Pays Costs for Property Held as Tenants in Common

    My question involves real estate located in the State of: California

    Two people are gifted a property as tenants in common. No other direction or instruction within the text as to who pays what.
    In such a situation does the document default to existing california tenancy law re who pays what? I read on the internet that each party is responsible for taxes, insurance and major expenses up the the precentage interest they each have in the property. However, I cannot find the law or statute that clearly spells out financial responsibility tenants in common for California only references to it. Can anyone help?


    Thanks!

  2. #2
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    Default Re: Tenants in Common

    Well, in one aspect, the tenants in common are responsible for their share of the property taxes. In the other aspect, if the other owner doesn't pay the state will take action against the property and both will be screwed, so it behooves you to make sure the taxes are paid and then pursue the deadbeat co-owner.

    There's no statutory obligation for insurance, so it's not clear what you're talking about there.
    As for other maintenance expenses, that's something that should be split but again you're llikely going to need a civil action against the co-owner to collect.

  3. #3

    Default Re: Tenants in Common

    I was hoping somebody could direct me to the law, statute or whatever California might have governing tenants in common?

  4. #4
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    Default Re: Tenants in Common

    Quote Quoting condenado
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    I was hoping somebody could direct me to the law, statute or whatever California might have governing tenants in common?
    It is highly unlikely that such a law exists.

  5. #5
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    Default Re: Tenants in Common

    Who is in possession of the property? Are either or both of the joint tenants in possession?

  6. #6
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    Default Re: Tenants in Common

    Quote Quoting condenado
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    Two people are gifted a property as tenants in common. No other direction or instruction within the text as to who pays what.
    Within the text of what? If you're talking about a deed, deeds don't contain directions or instructions.


    Quote Quoting condenado
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    In such a situation does the document default to existing california tenancy law re who pays what?
    What document? Again, if you're talking about the deed, "who pays what" has nothing to do with the deed.


    Quote Quoting condenado
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    I read on the internet that each party is responsible for taxes, insurance and major expenses up the the precentage interest they each have in the property. However, I cannot find the law or statute that clearly spells out financial responsibility tenants in common for California only references to it. Can anyone help?
    The general rule, in the absence of a contract that says otherwise, is that each joint owner is liable to each other joint owner for contributing to the expenses of the property (e.g., property taxes, insurance, maintenance) in an amount based on each owner's percentage of ownership. For example, if Owner 1 pays the property taxes, Owner 2 is liable to Owner 1 for 50% of the taxes (assuming each of the two owners owns an undivided one-half interest). I have no idea if there's a statute that says this because it's a common law rule.

  7. #7

    Default Re: Tenants in Common

    The document I refer to is the gift deed granting the property as "tenants in common".

    What Im getting at is that in the absence of any contract or further instruction within the deed or any other document, who then decides who pays what? and how can that be enforced? Can a common law rule be enforced in court?

    I have read that under tenants in common (as opposed to joint tenants) that each party has the responsibility of expenses/major repairs up to the percentage of interest they own in that property.
    That neither party can deny access to the property to the other nor can either charge rent of the other party.
    That all this is california law however I cannot find that law. Yet I read this over and over on the internet.

  8. #8
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    Default Re: Tenants in Common

    Quote Quoting condenado
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    The document I refer to is the gift deed granting the property as "tenants in common".

    What Im getting at is that in the absence of any contract or further instruction within the deed or any other document, who then decides who pays what? and how can that be enforced? Can a common law rule be enforced in court?

    I have read that under tenants in common (as opposed to joint tenants) that each party has the responsibility of expenses/major repairs up to the percentage of interest they own in that property.
    That neither party can deny access to the property to the other nor can either charge rent of the other party.
    That all this is california law however I cannot find that law. Yet I read this over and over on the internet.
    All of that is common law...not CA specific law. As I said, I do not think that you are going to find a CA specific law that spells out what you are hoping to find spelled out. However, if anyone can help you find something it would be a real estate attorney. You probably want to get a consult with one in your area (or in the area where the property is located).

  9. #9
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    Default Re: Tenants in Common

    Quote Quoting condenado
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    What Im getting at is that in the absence of any contract or further instruction within the deed or any other document, who then decides who pays what?
    I answered that in my prior response.


    Quote Quoting condenado
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    and how can that be enforced?
    Litigation.


    Quote Quoting condenado
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    Can a common law rule be enforced in court?
    Yes.


    Quote Quoting condenado
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    I have read that under tenants in common (as opposed to joint tenants) that each party has the responsibility of expenses/major repairs up to the percentage of interest they own in that property.
    That neither party can deny access to the property to the other nor can either charge rent of the other party.
    That all this is california law however I cannot find that law. Yet I read this over and over on the internet.
    No one here can intelligently address something you "read . . . on the internet" unless you provide a citation or link. As I explained in my prior response, I'm not sure if this common law rule (which is equally applicable to tenancies in common and joint tenancies) has been codified in California.

    What situation are you dealing with that has lead you to make this inquiry?

  10. #10
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    Default Re: Who Pays Costs for Porperty Held as Tenants in Common

    You won't find a law that dictated how expenses are to be paid in the absence of an agreement. You may be able to find a basis to seek contribution toward necessary expenses, but any such obligation will depend upon the circumstances. For example, if one co-owner lives in the property and has full use and enjoyment of the property to the exclusion of the other, it would not be unusual for that person to pay much of the expenses associated with the property during that period of exclusive use. If one party is acting as landlord and is generating revenue from the property, it would be commonplace for the rent to be applied to expenses before any balance is divided between co-owners.

    If you and the co-owner cannot agree about payment of expenses, and neither of you are in residence, it may be time to sell, to buy out your co-owner, or to have your co-owner buy you out.

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