Profile picture for draymo54

Has anyone dissolved a tenants in common agreement?

A relationship has ended and we are tenants in common.  I have spoken to a realtor and we are upside down on the house.  Only lived there for 3 years and there's no equity.  I don't think either one of us would qualify on our own??? HELP
  • May 11 2010 - US
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Answers (2)

Profile picture for wetdawgs
At the moment you are in a very difficult situation because you both own the debt.   Therefore, your options are:

a.  One buys the other out, and you together share the $$ amount under water.

b.  Together you put it on the market to see if together you qualify for a short sale.   IF not, you are both equally responsible for the difference.

c.  The one who wants to leave continues to pay his/her share until the day comes when you together want to sell or that the remaining person is capable of buying out the other.

I would visit with a real estate attorney for a full evaluation of possibilities as dissolving tenancy in common is likely to be painful as money is involved.



  • May 11 2010
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What is gained from dissolving the tenancy in common? If you are both on the mortgage you are both still liable for the debt, irregardless of how title is being held.

One person could sign over the property to another using a quit claim deed, but that doesn't excuse the underlying debt. It merely transfers the property over to the other party. The quit claim deed would be used in conjunction with one party 'buying out' the share of the other party, but it doesn't sound like this is a viable option.

Talk to an attorney and Realtor to see what your options are regarding a short sale. And if a short sale becomes necessary, contact the lender. Don't leave them out of the decision.
  • May 11 2010
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