Co-owners in disputes involving joint ownership disputes can sort out their differences through negotiation, mediation, co-ownership agreements, or, in a worst-case scenario, legal action, including filing partition lawsuits. The appropriate route will depend on the nature of the ownership, the rights of each party, and how cooperative everybody is.
A CoBuy report in 2025 found that 3 in 10 U.S. home sales also involved multiple buyers purchasing together.
With a rise in housing costs, shared ownership has become more popular among families, friends, and even investment partners. However, while the purchase together can open doors, disagreement often follows. When joint ownership goes bad, the results can be expensive and legally complex.
Knowing the legal choices is important for anyone who is contemplating or currently trying co-ownership. When disputes arise over the use of property or disputes over selling, co-owners need to understand their rights and the resolution process. Early investigation of dispute resolution avenues can protect assets and save relationships.
Read further to find out what most disputes are about and the legal options out there in case they turn sour.
Common Causes of Joint Ownership Disputes
Conflicts can arise very fast when the expectations clash or the responsibilities are undefined. Financial distress, communication issues, and differing long-term goals often come into play. Family or friendship dynamics can also make it even more difficult to straighten things out.
There are many possible scenarios from which co-ownership disputes can arise:
- Disputes over selling or retaining the property
- Unequal financial contributions and expenses
- Disputes about rent or occupancy
- Personality clashes or lifestyle differences
- Inheritance issues when more than one heir co-owns
Co-ownership disputes tend to become worse when the terms of ownership are not put in writing. When there are no agreements, the courts may have to fill the void.
The Role of Co-Ownership Agreements
One of the greatest tools to avoid disputes is a co-ownership agreement. The agreement details each homeowner’s rights and responsibilities, such as:
- Financial contributions and ownership percentages
- Rules for maintenance and expenses
- Sales of or transfers of ownership
- Conflict resolution methods
With a good working relationship in place, a written agreement provides a roadmap for future decisions. Well-crafted co-ownership agreements minimize uncertainty and litigation.
Types of Joint Ownership and Their Legal Implications
Joint ownership is not created equally. The legal framework impacts dispute outcomes:
Joint Tenancy With Right of Survivorship (JTWROS)
If one owner passes away, his or her share is automatically inherited by the surviving co-owner(s). While this setup streamlines transfers, it can also cause discord with heirs who assumed they would inherit. It requires that all the owners hold equal percentages and that they all buy the property at the same time.
Tenancy in Common (TIC)
TIC is a form of ownership in which owners have detached, transferable shares, which they may transfer to heirs. Shares may not be equal. However, this allows for more flexibility in investment.
It also raises the possibility of disputes should owners disagree on how to use and sell the property. Creditors may also go after a share belonging to an individual owner.
Tenancy by the Entirety
The benefit is available only to married couples, who receive survivorship rights and protection from certain creditors. It stops a spouse from selling or encumbering the property without the consent of the other. This type is typically regarded as one of the most effective defenses against third-party accusations.
Property Dispute Resolution Options
Property disputes require an understanding of informal as well as formal solutions. Some solutions demand collaboration, while others call for the intervention of the courts.
If problems develop, co-owners on a property can navigate several resolution options:
- Negotiation: Personal meetings to reconcile differences
- Mediation: A neutral third party assists co-owners in reaching a resolution
- Arbitration: A final ruling by an arbitrator, often quicker than a court
- Partition action: A legal action for partition is a court-ordered sale or physical division of a property
Legal Action for Co-Owners: Partition Lawsuits
When cooperation fails, co-owners can file a partition action. Courts can:
- Order the property to be sold and the proceeds divided among the owners
- Physically separate the property, if possible
Partition actions are a way to resolve disputes over inherited property where there are many heirs who disagree. Also, lawsuits can be both expensive and time-consuming.
Experienced attorneys, such as those at Underwood Law Firm, P.C., can advise co-owners on these rights and their legal options.
Joint Tenancy Issues: Survivorship Complications
Problems involving joint tenancy often surface after the death of a co-owner. Survivorship rights may override wills, and heirs can be left with nothing. Families may become emotionally and financially overburdened when their wishes differ from the results of a legal process.
A little bit of forethought and knowledge of the inheritance and survivorship laws in your state can go a long way toward preventing surprises.
Frequently Asked Questions
What Happens to a Jointly Owned Property if One Owner Goes Into Care?
If one co-owner goes into long-term care, the share of the property they own could be viewed as an asset for the purposes of Medicaid or other care funding. The amount of that share may determine whether a family is eligible for assistance.
Depending on the nature of the ownership, the government would be able to put a lien on the share or insist on a sale to recoup any costs. Tenancy by the entirety could offer more protection for married couples, while tenancies in common might be more vulnerable.
What Are the Three Types of Joint Ownership?
Families and partners can make informed decisions when they understand their options for ownership. Each has different legal and practical implications with regard to:
- Inheritance
- Liability
- Control
The three main types are:
- Joint Tenancy: Share equally with survivorship rights
- Tenancy in Common: An individual’s share need not be the same as the other and may pass to heirs
- Tenancy by the Entirety: Only for married couples, survivorship, and creditor protections
Navigating Disputes in Shared Property Ownership
If joint ownership fails, the legal responses vary, from negotiation to a partition ordered in court. Understanding the rights of co-owners and the types of ownership will determine the best course. Early preparation and legal counsel can save time, money, and relationships.
Explore our other guides and articles with helpful tips available on our website.
This article was prepared by an independent contributor and helps us continue to deliver quality news and information.
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