If I co-own a house with a friend and he/she was sued for an accident, had a lien for doctor bills or credit cards, etc., would that affect my share of the property also? If so, what type of agreement can be written up to prevent this?
Thanks
3 Comment(s)
depends on the vesting in the homes title. Tenants in common no your half is protected. JTWROS then no you are not protected. Any liens must be paid if selling or even refinancing in the future. So if the friend does not pay them then you too would have to sue her in all of this since if selling the agents get commissions and that comes out of the sales price. She must pay the liens in any event since they gain interest as well
depends on the vesting in the homes title. Tenants in common no your half is protected. JTWROS then no you are not protected. Any liens must be paid if selling or even refinancing in the future. So if the friend does not pay them then you too would have to sue her in all of this since if selling the agents get commissions and that comes out of the sales price. She must pay the liens in any event since they gain interest as well
golferwhoworks | Jul 24, 2009 | Reply
In most states if you are tenants in common on the deed, they generally can’t touch your interests.
Talk to a real estate lawyer; odds are you only need a correctly recorded and prepared deed.
wizjp | Jul 25, 2009 | Reply
It will complicate the matter if in the future you try either sell or refinance the place, since the lien is valid on his/her interest in the property
goz1111 | Jul 26, 2009 | Reply