Disputes Between Owners Of Real Estate

In many situations, more than one person owns a piece of real estate.  For instance, when leaving property in a will, real estate is often left to multiple heirs.  In addition, business partners, relatives, and others may wish to purchase property together and become concurrent owners of the property.  Disputes between owners of real estate do arise, and parties to such a dispute should keep a few things in mind before considering litigation to resolve the matter.

Types of Concurrent Ownership

Depending on the jurisdiction, there are usually a few different ways that more than one party can own real estate.  Tenants in common typically own property in a way that makes it easier for each of the tenants to sever their share of the property.  Joint tenants own the property in a way that is more difficult to sever the interest in the property, and usually when one of the joint tenants dies, the other tenant(s) receive that persons share of the real estate.  Sometimes, married couples are considered tenants in the entirety, which is an advantageous form of concurrent ownership that for instance makes it difficult for creditors to assert claims against the real estate.  If parties have the option to choose which tenancies they wish to use when concurrently owning property, they should speak to an experienced lawyer to ensure that their concerns are satisfied.

Common Disputes Between Tenants

Disputes between owners of real estate often arise because of a few situations.  For instance, concurrent tenants are usually not allowed to oust (kick out) one another and then deprive the ousted tenant of their share of income that is gained from the real estate.  In addition, if there has not been an ouster, then each of the concurrent tenants are usually responsible for their respective share for all maintenance and other costs needed to repair the property.  Moreover, tenants that are not ousted are also responsible for taxes on the property.  Concurrent tenants are normally able to agree among themselves how they wish to change these default rules, and if parties agree among themselves how they wish to share a property, it is best to put such an agreement in writing so there is no ambiguity if a dispute arises.

Contribution

Contribution is one of the most important causes of action that can be asserted against a party when dealing with disputes between owners of real estate.  Some jurisdictions have statutes that grant a concurrent owner of property to recover his or her just portion of the share of income generated from a property, and other jurisdictions allow such claims as a long-standing practice courts allow.  In any event, a party making a claim for contribution usually needs to show that they were ousted from the property and that the cotenant against whom a claim is made is in exclusive possession of the property.  Next, a party needs to demonstrate that, notwithstanding expenses owed on the real estate, that they are entitled to money.  Parties should be organized and be prepared to produce records and calculations that show how that party is entitled to money.

Partition

Splitting up the property, also called a partition, is one way of resolving disputes between owners of real estate.  In many jurisdictions, courts have the power to order that a property be severed and partitioned if the situation between concurrent tenants has broken down so much that the property cannot be used in its current situation.  Normally, courts will not order a partition for minor disputes between co-owners, since a partition is somewhat of a drastic remedy that can have a massive impact on the rights and responsibilities of the concurrent owners.  As such, a party seeking to have a court partition property needs to prove how the conflict between concurrent owners makes circumstances unmanageable without a court resolving the dispute.

Accounting

An accounting is another important cause of action when resolving disputes between owners of real estate.  It is oftentimes difficult for parties to ascertain all of the expenses and income that is being generated from real estate.  This is especially true if one or more of the concurrent owners of the property have been ousted from the premises and cannot access the real estate.  An accounting is an action in which the court commands that a party account for the income and expenses associated with property.  Normally, the party will have to produce financial records such as spreadsheets, ledgers, receipts, and other documents as a result of an accounting claim.  In some instances, the accounting cause of action can also provide a court with the jurisdiction to disgorge a concurrent owner of money to which they are not entitled and to convey this money to other concurrent owners.  An accounting cause of action is often complex, so it is important to work with an experienced lawyer who knows the records that must be sought, and who has connections with accountants and other professionals who can assist with this process.

The Rothman Law Firm is experienced in disputes between owners of real estate and we can help concurrent owners of property resolve their dispute through litigation or before a lawsuit is filed.  If you are looking for an experienced New York and New Jersey real estate lawyer to handle your property dispute or other legal issue, please feel free to contact The Rothman Law Firm to request a free legal consultation.