When two or more co-owners want to end their ownership rights in a piece of
property, this type of transfer of title can take place by means of a Quitclaim
deed. The co-owner will sign over his rights and title in the Quitclaim deed,
and the deed should then be recorded in the County Recorder's office. An
exchange of money may or may not take place. A Quitclaim deed gives no
warranties as to the condition of title at the time of the transfer.
Quitclaim deeds are often used between husband and wife or between
relatives. Quitclaim deeds are also often used to cure technical defects in a
title and to eliminate any potential claims against the property from persons
with an uncertain or potential interest in the property. You can ask an escrow
office or attorney to prepare the Quitclaim deed, or you may do it yourself.
What happens when one co-owner doesn't agree to end a co-ownership? It may
arise that one co-owner holding title with another owner under a tenancy in
common, or a joint tenancy or a partnership may want to sell the property but
the other co-owner does not agree. Does the owner wishing to sell have any
remedies to this problem? All joint tenants have what is called the right of
partition. This means that if one of the parties wants to end the tenancy, he
or she can go to court and force it to be dissolved and the assets distributed
to the various tenants. Partition is available for tenants in common, owners
as joint tenants with the right of survivorship, conservatorship, life tenants,
corporations, and property owned by trusts.
Because partition actions are often time-consuming and costly, this method
of dissolving a co-ownership should be used only when the co-owners cannot come
to an agreement. Partition actions often require the services of an attorney
. A husband and wife cannot seek partition of property that is owned by them
as tenants by the entirety. But once the parties are divorced, they can then
seek an involuntary judicial partition of the property that they owned
previously, unless specifically prohibited from using a partition action in
their divorce or separation agreement.
When it is possible to divide the property and to establish a valuation of
the property, local statutes often require three disinterested referees or
commissioners be appointed by the court to determine value. If it is possible
to divide the property but not possible to establish the value evenly between
the co-owners, the difference is called owelty and the co-owner who gets the
better half of the property must compensate the other co-owner for this
privilege. If two or more partners in a parternship arrangement want to end a
co-ownership, they must dissolve their partnership, as partition is not
available to them in this case.
A mutual agreement between the joint tenants in a co-ownership is by far
the simplest and most economical way to end an ownership among several
co-owners. The right of partition exists, but really should be used as a last
resort.
| This information is designed to provide accurate and authoritative
information in regard to the subject matter covered. It is given with the
understanding that the author is not engaged in rendering legal service. If
legal advice or other expert assistance is required, the services of a
competent professional person should be sought. |
More Title & Escorw Topics:
Proration of Rents in Escrow
Resolving Boundary Disputes
Dealing With Clouds On Your Title
Closing Escrow When You Are Out of Town
Published: August 13, 1999
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