A Guide to Tenants-in-Common in California (Civ. Code § 682)
Co-owning residential or commercial property as tenants in typical is the favored type of joint ownership in California. (Wilson v. S.L. Rey, Inc. (1993) 17 Cal.App.4 th 234, 242 (S.L. Rey).) Yet, residential or commercial property kept in tenancy in common brings with it a distinct set of potential problems that are not present in the other kinds of joint ownership acknowledged by the state. (see California Civil Code, § 682.)
Different ownership interest percentages in between co-owners can impact one's duties for common expenditures and levels of disbursement on a sale. A fiduciary relationship in between joint owners can interrupt a co-owner's ability to acquire an encumbrance. Payments for improvements to the residential or commercial property may not be recoverable in an accounting action if deemed "unneeded." These are simply some of the problems we will try to attend to in this post about the financials of tenancies in common.
Developing Co-Owned Residential Or Commercial Property
At the beginning, it is very important to note the essential functions for holding title as tenants in typical. A "tenancy in typical simply needs, for production, equivalent right of possession or unity of belongings." (S.L. Rey (1993) 17 Cal.App.4 th 234, 242.) In essence, "all renters in common can share equally in the possession of the entire residential or commercial property." (Kapner v. Meadowlark Ranch Assn. (2004) 116 Cal.App.4 th 1182, 1189.) But since equal belongings is the only requirement, this indicates that tenants in common can hold title in different ownership percentages. (see Donnelly v. Wetzel (1918) 37 Cal.App.741 [renters in common held a one-third and two-thirds percentage of ownership, respectively])
For an in-depth discussion on the differences between tenancies in typical and joint occupancies, please see our previous post on the subject.
Co-owning residential or commercial property as tenants in typical is the favored type of joint ownership in California. (Wilson v. S.L. Rey, Inc. (1993) 17 Cal.App.4 th 234, 242 (S.L. Rey).) Yet, residential or commercial property kept in tenancy in common brings with it a distinct set of potential problems that are not present in the other kinds of joint ownership acknowledged by the state. (see California Civil Code, § 682.)
Different ownership interest percentages in between co-owners can impact one's duties for common expenditures and levels of disbursement on a sale. A fiduciary relationship in between joint owners can interrupt a co-owner's ability to acquire an encumbrance. Payments for improvements to the residential or commercial property may not be recoverable in an accounting action if deemed "unneeded." These are simply some of the problems we will try to attend to in this post about the financials of tenancies in common.
Developing Co-Owned Residential Or Commercial Property
At the beginning, it is very important to note the essential functions for holding title as tenants in typical. A "tenancy in typical simply needs, for production, equivalent right of possession or unity of belongings." (S.L. Rey (1993) 17 Cal.App.4 th 234, 242.) In essence, "all renters in common can share equally in the possession of the entire residential or commercial property." (Kapner v. Meadowlark Ranch Assn. (2004) 116 Cal.App.4 th 1182, 1189.) But since equal belongings is the only requirement, this indicates that tenants in common can hold title in different ownership percentages. (see Donnelly v. Wetzel (1918) 37 Cal.App.741 [renters in common held a one-third and two-thirds percentage of ownership, respectively])
For an in-depth discussion on the differences between tenancies in typical and joint occupancies, please see our previous post on the subject.