I had to spend $11k for an attorney to fix up one of these some years ago. I bought a half interest in a house that just had “joint tenants” on the deed. The other tenant/owner had died. No title insurer would insure title to my buyer.
Thats when I learned that anytime you deal with partials, do whatever the title insurer says to do. They couldnt determine “in common” or “right of survivorship”.
Ended up finding the heirs and paying them off $15k, paying $11k for my attorneys fees. I still made $20k when all was said and done but I was hot about that.
too many frivolous suits I guess…title insurers are trying to minimize losses.
Had a lady call me today about a house that was owned by her and her sister. Sister dies and lady wants to sell. I asked if the dead sister had a will and she replied no. I asked if the dead sister had any kids and she said yes 1. I asked if the heir was interested in selling and she said she didn’t want the heir to know the house will be sold. I told her that i don’t buy 1/2 houses and would need to have the heir sign a deed. Said she’d rather not but for me to come take a look. Is this a lead to drop? Drop it like it’s hot…
Are you sure the sisters didn’t hold title as joint tenants? If joint tenants then the surviving sister owns the property. If you’re not sure–look at the deed.
Posted by Joe Kaiser on March 15, 2006 at 22:13:15:
Dude, go buy half the house.
Partial interest profits are like our bread and butter. Half interests are
sold at huge discounts. I’d snap that up and in the mean time, I’d hunt
down Junior and buy him out at an equally deep discount before
anyone else gets to him.
Or, drop it like a hot potato after you email me the address. Your
choice.
How cheap is dirt cheap? I can’t imagine buying anything like this for more than 50 cents on the dollar. You never know when you’re going to get out of it … or you’ll have to pay retail to the other 1/2 if they are completely uptight about it. So 50% and 100% averages out to 75% of FMV, which is getting tight.
No—there’s joint tenancy and there’s tenancy in common–they’re seperate estates. It’s not necessary to say joint tenants with the right of survivorship–survivorship is a distinct characteristic of joint tenancy.
joint tenants in common
joint tenants with right of survivorship…
two or more people who arent married create these ownership situations.
here in NC its required to document on the deed which one you are creating unless you’re husband and wife.
Most if not all title insurers require this distinction to be noted on the deed.
If two people on the deed just say “joint tenants” but actually mean “joint tenants with right of survivorship” the heirs of the decedent will (and have done) make claims to the “big equity” real estate.
I’m just thinking, what if they don’t want out of it right now? Maybe they don’t need the money and see it as an investment or something. And I don’t know how marketable 1/2 of a house is. Seems like the worst that would happen to cash out the deal would be buying the other 1/2 at a little over 100%. Since the owner wouldn’t get more than that right now anyhow. What’s your strategy getting into one of these?
Are you saying that the language- right of survivorship- must be included to avoid treating the estate as a tenancy in common? What if all the requirements necessary to create a joint tenancy are met and the language in the deed is: To x and y, as joint tenants and not as tenants in common?
If you’re right that NC requires this then I was wrong to say otherwise. Maybe others familiar with this can chime-in.
Re title: determine who is currently on title to establish whether the property is solely in the name of the decedent, or with someone else, too. Also, it’s possible that title could be in both names as joint tenants, implying that there’s a right of survivorship of title going to the joint owner.
If the property is only in the name of the decedent, then your best, simple play is going to be focused on the probate estate. Then, determine who is/are the heirs.
However, if the house is also in the name of the living sister, point out to sister that all she has is half a house which is worth a lot less than 50% of the total value.
(My Dad and two friends once bought an extra horse and used to joke about who has to feed it, who has to clean up after it, and who gets to ride it…some split).
Kaiser is absolutely right. Big bargains in partial interests. If you don’t want to (or know how to) work this kind of a deal, pass it along to someone who does and make a little money in the meantime. Then focus on good 'ol, straightforward R.E. purchases.