Dividing Property Outside of Divorce

A partition action is a legal proceeding to divide property amongst unmarried individuals that cannot agree what to do with the property. This may arise in a situation where two parties who were never married purchased a home together. It may also arise if real property is not properly dealt with at the time of the divorce action and the now divorced parties are still co-owners. Pennsylvania partition actions are governed by Rules 1551 – 1574 of the Rules of Civil Procedure. There are two options in a partition action. One option involves physically splitting the property, if possible. The alternative option, and more likely occurrence, involves the home being sold with the proceeds divided. As far as procedure, a complaint for partition should be brought in the county where the property is located and must include all co-tenants as parties.

The complaint must also include a description of the property along with each co-tenant’s interest in the property. Following the filing of the complaint and a court order on the partition, a court officer called a “master” is usually appointed to oversee the action. This usually includes an appraisal of the property to obtain an accurate value and setting up the sale of the property, be it private or public. The parties to the partition action are responsible for splitting all fees incurred during the partition proceeding as well as compensating the master. The parties can resolve at any time settle the matter amicably amongst themselves. Married couples should be sure to deal with real property issues at the time of divorce to avoid the potential for this additional proceeding down the road.

Click here to read more about real estate issues.

by

Partition of Real Property

A partition action is a legal proceeding to divide property amongst unmarried individuals that cannot agree what to do with the property. Pennsylvania partition actions are governed by Rules 1551 – 1574 of the Rules of Civil Procedure. There are generally only two options in a partition action. The parties can physically split the property, if possible. This is rarely a feasible option, particularly in the case of property with a structure on it, such as a home. Alternatively, the property is sold and the proceeds are divided. As far as procedure, a complaint for partition should be brought in the county where the property is located and must include all co-tenants as parties. The complaint must include a description of the property along with each co-tenant’s interest in the property.

Following the filing of the complaint and a court order on the partition, a master is appointed to the case. The master will set up an appraisal of the property to obtain an accurate value. Subsequently, the master will arrange for the sale of the property, be it private or public. The parties to the partition action are responsible for splitting all fees incurred during the partition proceeding including compensating the master. The parties do have the opportunity to resolve the partition action at any time and settle the matter amicably amongst themselves.

Click here to read more about real estate ownership.

by

Securing an Interest in Real Property

It is a good idea to record your interest in any real property with the Recorder of Deeds as soon as possible. In a divorce matter, if one party is keeping the home, a new deed may need to be drawn up to indicate the sole ownership of the property. Transfers of real property incident to a divorce are exempt from the standard realty transfer taxes. On the other hand, you may need to put a lien on real property to protect your interest in the home’s value or as leverage for other sums due to you. In Philadelphia, an Affidavit of Interest in Real Property should be completed and submitted to the Recorder of Deeds. A copy of the current deed for the home is necessary to refer to the legal description of the property.

In Bucks County, parties can file a lis pendens. A lis pendens serves the same purpose in that it will pop up if a party tries to dispose of the property. A lien might also be put against a home for other unsecured debts. Often, at the time of settlement on a home, many of the debts would need to be paid off first. These unsecured debts are in addition to debts secured by the property such as mortgages or equity lines of credit. Failure to document your interest in real property could result in the home being transferred or sold without notice to you potentially eliminating your ability to recoup your share.

Click here to read more about real estate.

by

Real estate ownership

In Pennsylvania, there are several ways that real property (i.e. houses) may be titled. When two or more people own property together, they should be aware of the manner in which the property is owned:

Tenants in Common – When property is owned as tenants in common, each owner owns a certain percentage of the property. Usually, this ownership is equally divided, but can be altered on the deed itself. If you own real estate in this manner, you can do as you please with your share. For example, you can sell your interest in the property, or you can leave it to a friend or family member in your will. When you pass away, your share is distributed though the probate process, and not necessarily to the owners who survive you. Even though all owners own a percentage of the property, they all have the right to enjoyment and possession of the property.

Joint Tenants with Right of Survivorship – When property is owned this way, all owners have the right to enjoyment and possession of the property. However the property passes directly to the survivor(s) upon the death of one of the owners. The owners may not sell or gift their portion of the property without consent of the other owners.

Tenants by the Entirety – This is the similar to Joint Tenants, except that the owners must be married to each other. This form of ownership may be dissolved upon death or divorce of either spouse. If it is due to divorce, the ownership reverts to Tenants in Common.

by

Short Sale Basics

A short sale is an alternative to foreclosure. The lender allows the home to be sold for less than what is owed on the mortgage. It is usually less of a loss for the lender to allow a short sale than to let the home go into foreclosure. Once a home goes into foreclosure the lender loses even more money on a monthly basis providing for the upkeep of the home and paying the taxes. Additionally, it is less of a hit on the credit of the seller to go through with a short sale over a foreclosure. A seller should try to negotiate with the lender to minimize damage to their credit rating as part of the sale agreement. To be eligible for a short sale, the seller must be behind on payments due to financial hardship. Proof of this hardship must be established by supplying tax returns, pay stubs, bank statements and list of monthly expenses. A short sale is not likely to occur if the seller is already in bankruptcy as a short sale is considered a prohibited collection activity.

The short sale process moves most quickly if it is pre-approved by the lender for a certain amount although this is not usually the case. It is a good idea to work with a real estate agent or attorney to help negotiate the short sale process between the lender and potential buyer and ensure a timely sale. The short sale process becomes more complicated if there is more than one lender. Second mortgages or home equity lines can muddy the short sale process especially since secondary lenders stand to take the biggest loss on a short sale and all the lenders need to be in agreement with the terms for sale. Buyers stand to gain the property at a discount through a short sale but should exercise caution and do thorough research on the prospective property. All parties should be prepared to be patient with the short sale process and seek guidance/representation by an expert in the area.

Click here to read more about Real Estate Law.

by

Splitting Real Estate Outside of a Divorce

A Partition Action is the type of legal proceeding needed to divide property amongst unmarried individuals that cannot agree what to do with the property. There are two options in a partition action. One option involves physically splitting the property, if possible. The alternative option, and more likely occurrence, involves the home being sold with the proceeds divided. As far as procedure, a complaint for partition should be brought in the county where the property is located and must include all co-tenants as parties. The complaint must also include a description of the property along with each co-tenant’s interest in the property.

Following the filing of the complaint and a court order on the partition, a court officer called a “master” is usually appointed to oversee the action. This usually includes an appraisal of the property to obtain an accurate value and setting up the sale of the property, be it private or public. The parties to the partition action are responsible for splitting all fees incurred during the partition proceeding as well as compensating the master. The parties can resolve at any time to settle the matter amicably amongst themselves.

Click here to read about division of marital property.

by