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Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 37386
Experience:  16 years real estate, Realtor. Landlord 26 years
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If house title is Joint Tenants, owned yrs and then one

Customer Question

If house title is Joint Tenants, owned for 2 yrs and then one tenant decides to pay off entire loan and to change from Joint Tenants to Tenants in Common, what percentage of house would each own and must one factor in the increase in home value during 2 yrs jointly owned to figure out percentage of ownership? Details: Original Purchase price of home: $315,000. Each paid 1/2 of down payment. Each has been making equal house payments, including insurance and Co taxes. Loan amount was $240,000 after down payments. Balance remaining for payoff after 2 yrs: $232,258.
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Barrister replied 2 years ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
The change from joint tenants to tenants in common wouldn't change the ownership percentage at all. Both parties still own an undivided 50% interest in the property.
The fact that one party voluntarily paid off the mortgage wouldn't change the ownership percentages either.
However, if the house was sold, then the owner who paid off the mortgage would have the right to recover the amount paid off the top of any sales proceeds with the remainder being divided equally between the owners.