Things You Can Do When You Want to Give Up Joint Custody of a Property
When two or more people own a property together, it’s called joint custody. It can be a great way to share the responsibilities and costs of homeownership, but it can also cause problems if one person decides they no longer want to be involved. So if you’re in this situation, what are your options? Here are a few things you can do when you want to give up joint custody of a property.
Sell the property:
Selling the property is usually the simplest and most straightforward solution if you no longer want to be a joint owner. You can start by contacting a real estate agent to help you list the home and market it for sale. When selling a jointly owned property, both owners must agree on the terms of sale and sign off on any documents.
Buy out your co-owner:
If only one person wants to keep ownership of the property, they can buy out their co-owner’s share. This arrangement typically involves paying the other person their fair share of the equity in exchange for relinquishing their ownership rights. Just remember that you’ll need to have the cash available or secure a loan in order to do this.
If both parties agree, another option is to refinance the mortgage into one party’s name only. This can be a great solution if the person staying in the home has the income and credit score to qualify for a new loan.
Rent out the property:
If neither party wants to keep ownership of the property, renting it out is another option. Renting out the property will generate rental income for both parties, and the tenant will maintain the home and pay the mortgage. You can hire a property management company to handle all aspects of leasing and managing tenants.
File for partition:
Filing for partition is another option that can be used if the other joint owner refuses to cooperate. This process involves going to court and having a judge decide how to divide the property. Again, you’ll need a Partition Lawyer to help you navigate the process as well as any legal fees that may be involved.
Give up ownership:
If all else fails, you may need to consider giving up your joint ownership rights altogether. Depending on your situation, this could involve transferring the property title back to your co-owner or transferring it into an LLC owned by both parties. No matter what route you choose, it’s important that all parties involved are in agreement and sign any legally required documents.
Joint custody of a property can be great for sharing costs and responsibilities, but it doesn’t always last. If you no longer want to have ownership of a jointly owned property, there are several options available to you. Selling the home or buying out your co-owner are usually the simplest solutions, but it may also be possible to refinance, rent it out, or even file for partition. Talk to a lawyer and real estate professional to identify the best option in your situation.