Ownership Flashcards
Does one co-tenant owe rent to the other co-tent that is not in possession of their share of the property?
Absent an agreement to the contrary, a co-tenant is generally not required to pay rent to the other co-tenants for the value of her own use of the property, even when the other co-tenants do not make use of the property.
Can a co-tenant in sole possession of the property collect contribution from another co-tenant?
A co-tenant can collect contribution from the other co-tenants for paying more than his portion of necessary or beneficially spent operating expenses (e.g., taxes or mortgage interest). However, a co-tenant in sole possession can collect only for the amount that exceeds the rental value of the property.
Can a co-tenant be reimbursed by other co-tenant for repairs made?
Co-tenants do not have the right to be reimbursed by other co-tenants for repairs made to the property, even when those repairs are necessary.
Can a mortgagee enforce a mortgage against joint interests upon default of one co-tenant?
When the holder of a property interest executes a mortgage with respect to that interest, the mortgagee generally may enforce the mortgage against that interest. When all joint tenants of real property execute a mortgage, the mortgagee may enforce the mortgage against all joint interests upon default.
Does lien theory protect the interest of the joint tenant who executed a mortgage with a co-tenant but is not responsible for the default?
Lien theory is only relevant if less than all joint tenants execute a mortgage on the jointly held property. In such a case, under the lien theory, the joint tenancy is not severed until there is a default and foreclosure sale.
Does ownership by joint tenancy prevent enforcement of a mortgage on the property?
Ownership of real property in a joint tenancy with the right of survivorship does not prevent the enforcement of a mortgage on the property. However, the mortgagee can enforce the mortgage only against the property interests of the joint tenants who enter into the mortgage.
What are the financial duties of a life tenant?
In the absence of a contrary direction in the document creating the life estate, it is the duty of the life tenant to pay all general property taxes and mortgage interest that accrue during the continuance of the life estate. The only limitation on this duty is that the life tenant has no duty to expend more than the income that can be generated from the land. When the fair rental value of the property is substantial, this limitation does not apply. If the remainderman does pay any property taxes due during the life tenancy, he or she is entitled to a judgment against the life tenant for reimbursement.
“because I want each of my boys to pass his share of the land to their children upon his death, I want them to hold this land as joint tenants.”
A tenancy in common is the type of tenancy that is created by default when neither a joint tenancy nor a tenancy by the entirety exists. When the father failed to create a joint tenancy in the will because he indicated that he did not intend to create a right of survivorship by saying that each should be able to pass his interest at his death, a tenancy in common was created; a joint tenancy requires a survivorship interest.
