Owning property with someone else sounds simple. You buy together, share the space and split expenses. But what happens when it’s time to make your own decisions? Can one co-owner sell without the other? What if one stops paying their share? Knowing your rights as a co-owner prevents legal trouble and financial loss.
Many co-owners don’t fully understand what they can and cannot do. This lack of clarity leads to disputes, costly court battles, or forced sales. In this article, we’re going to break it down and see where your rights stand.
Right to access and possession
Every co-owner has an equal right to use the property. It doesn’t matter if one paid more than the other.
But can one co-owner lock the other out? Usually, no. Unless there’s a legal agreement stating otherwise, both have full access. However, if one co-owner causes damage or creates unsafe conditions, a court may intervene.
There are exceptions. If a court grants exclusive possession to one co-owner, like in a divorce, the other may be legally removed. But this is rare in standard co-ownership cases.
Right to benefit from the property
If the property generates income, each co-owner is entitled to their fair share. This applies to rental income, business operations, or any other revenue from the property.
But if one co-owner does all the work, then? Say one manages tenants while the other does nothing. Can the active owner take a bigger share? Not without a written agreement. Courts usually divide profits based on ownership percentage, not effort.
Disputes often arise when one co-owner withholds earnings. In such cases, legal intervention might be necessary. If you find yourself in such a situation, consult property lawyers in Los Angeles. They will help resolve these conflicts before they escalate.
Right to transfer or sell ownership
Can a co-owner sell their share without asking the others? In most cases, yes. Unless the ownership agreement says otherwise, each co-owner can transfer their share freely.
However, selling an entire property without agreement is different. One co-owner cannot force others to sell unless they file a partition lawsuit.
If the remaining co-owners don’t want a stranger as a new co-owner, it’s their choice. Some agreements include a “right of first refusal.” This means existing owners get the first chance to buy before an outsider steps in.
Right to object to property modifications
Suppose one co-owner wants to renovate. The other disagrees. Who wins?
Major changes require consent from all co-owners. One person can’t remodel the kitchen, knock down walls, or build an extension without agreement.
But if a co-owner does it anyway, then the other can sue for damages or even demand the property be restored to its original state. It can turn into a costly legal fight.
Right to protect against financial liabilities
Shared ownership means shared responsibility. Property taxes, mortgage payments, and maintenance costs must be split. And in cases when one co-owner stops paying, the other must cover the shortfall. Otherwise, lenders can foreclose, even if only one person failed to pay.
Debt can also put ownership at risk. If a co-owner has unpaid debts, creditors might place a lien on the property. This can block refinancing or future sales. In extreme cases, creditors can force a sale to recover what’s owed.
Right to legal remedies in disputes
Co-owners often clash over money, responsibilities, or property use. When talks fail, legal action is the obvious next step.
One option is mediation. Taking help of a third party to resolve the conflict without court involvement. It’s faster and cheaper than a lawsuit.
If mediation doesn’t work, litigation is the second option. Courts have the power to force a sale, issue financial penalties, or even change the ownership structure. But lawsuits are expensive and time-consuming, so put them as the last option.
Conclusion
Co-owning property comes with legal rights and responsibilities. Understand these to prevent costly mistakes.
You have the right to use, benefit from, and sell your share. You also have protection against unauthorized changes and unfair financial burdens. If disputes arise, legal options exist to resolve them but always go for an easy option first, such as mediation.
Ownership disagreements are common, but they don’t have to lead to lawsuits. Clear agreements and open communication can make co-ownership work smoothly.
If you’re unsure about your rights, get a legal expert onboard . It’s better to clarify things now than fight in court later.