A Guide to Tenants-in-Common in California (Civ. Code § 682)
Co-owning residential or commercial property as occupants 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 an unique set of possible problems that are not present in the other forms of joint ownership acknowledged by the state. (see California Civil Code, § 682.)
Different ownership interest portions between co-owners can impact one's obligations for typical costs and levels of dispensation on a sale. A fiduciary relationship between joint owners can interfere with a co-owner's capability to acquire an encumbrance. Payments for enhancements to the residential or commercial property might not be recoverable in an accounting action if considered "unneeded." These are simply some of the problems we will try to deal with in this post about the financials of tenancies in common.
Developing Co-Owned Residential Or Commercial Property
At the beginning, it is essential to keep in mind the key functions for holding title as renters in typical. A "occupancy in common merely requires, for development, equivalent right of belongings or unity of belongings." (S.L. Rey (1993) 17 Cal.App.4 th 234, 242.) In essence, "all tenants in common can share equally in the belongings of the whole residential or commercial property." (Kapner v. Meadowlark Ranch Assn. (2004) 116 Cal.App.4 th 1182, 1189.) But since equal ownership is the only requirement, this implies that occupants in common can hold title in various ownership portions. (see Donnelly v. Wetzel (1918) 37 Cal.App.741 [occupants in typical held a one-third and two-thirds proportion of ownership, respectively])
For an extensive discussion on the distinctions between occupancies in common and joint tenancies, please see our prior post on the topic.
Co-owning residential or commercial property as occupants 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 an unique set of possible problems that are not present in the other forms of joint ownership acknowledged by the state. (see California Civil Code, § 682.)
Different ownership interest portions between co-owners can impact one's obligations for typical costs and levels of dispensation on a sale. A fiduciary relationship between joint owners can interfere with a co-owner's capability to acquire an encumbrance. Payments for enhancements to the residential or commercial property might not be recoverable in an accounting action if considered "unneeded." These are simply some of the problems we will try to deal with in this post about the financials of tenancies in common.
Developing Co-Owned Residential Or Commercial Property
At the beginning, it is essential to keep in mind the key functions for holding title as renters in typical. A "occupancy in common merely requires, for development, equivalent right of belongings or unity of belongings." (S.L. Rey (1993) 17 Cal.App.4 th 234, 242.) In essence, "all tenants in common can share equally in the belongings of the whole residential or commercial property." (Kapner v. Meadowlark Ranch Assn. (2004) 116 Cal.App.4 th 1182, 1189.) But since equal ownership is the only requirement, this implies that occupants in common can hold title in various ownership portions. (see Donnelly v. Wetzel (1918) 37 Cal.App.741 [occupants in typical held a one-third and two-thirds proportion of ownership, respectively])
For an extensive discussion on the distinctions between occupancies in common and joint tenancies, please see our prior post on the topic.