equity ownership in property
as joint tennants, unmarried, can the equity built up in a home be based on monthly contributions to mortgage if one party moves out of the home and fails to or chooses not to fulfill the original contract of a 50/50 split on mortgage payments? A suit to quiet title or partition will result in sale of home and i woudl rather leverage other ideas to solve this problem in which one party wants excessive amount of money in a buy out. Do i have any alternatives to keep my home when one party leaves and fails to maintain the property equally whiel demanding 50/50 equity division upon sale. How coudl i contract for deed or can the ownership be changed to tennants in common without the lenders permission?
Re: equity ownership in property
When non-married persons own real property together, but no longer agree on either owning the property, the value of their respective interests, or on how to dispose of the property, then partition is the appropriate remedy. In a partition action, the court typically determines (1) the value of each parties’ interest in the property (if it is something other than 50/50); and (2) how each party will realize that interest, i.e., either through a sale or buyout.
Therefore, contrary to your question, a suit for partition would not necessarily result in sale of the home; it could result in your ability to buy the other party out after each party’s interests in the property are determined. In addition, your assertion that the other party’s interest in the property is less than 50/50 would have to be established in the same action. Note, an express contract between the parties regarding the value of their interests and disposition of the property may control. You should consult an experienced real estate attorney before making any decisions regarding the property or this dipute.
Joel Hilgendorf
Hellmuth & Johnson, PLLC
10400 Viking Drive, #500
Eden Prairie, MN 55344