Joint ownership of a property comes with a number of pitfalls. For one, since both individuals own the property, one cannot take action to sell it without the full consent of the other. If you have decided that you want to dissolve joint ownership of property you'll have to negotiate with the other party and hire a lawyer to assist you with the process along the way.
Consult with the other joint property owner. Discuss the terms of dissolution. To completely dissolve the ownership of both parties in the property you must sell it. Draw up an agreement that outlines your terms in writing to avoid disagreements in the future and ask a lawyer to review the contract.
Advertise the property for sale. Set a price along with the other owner. When you find a buyer you both have to agree on whether to accept the offer and proceed with the sale.
Sign the deed or title transfer paperwork at the closing day for the property sale. If there is a lien holder such as a mortgage lender, that lien holder receives its portion of the proceeds first, then the owners split the remaining amount. Both parties must be present and must sign the paperwork. Once the sale is closed, neither party is legally tied to the property any longer.
Remove One Owner
Get verification from the other owner that he is willing to relinquish his claim to the property. Get this agreement from the other party in writing.
Fill out a quitclaim deed at the local property records office with the other owner. The quitclaim deed allows one owner to sign over his claim to the piece of property so that the other owner can take on full ownership. A real estate lawyer or title agency can help you with this process --- the exact process varies by state and county.
File the quitclaim deed with your local courts or property records office. The records department updates the title to account for just the new single owner.
- Ask a real estate lawyer to review all contracts. If the other owner is unwilling to comply, you may have to use this lawyer's services to sue regarding the matter in court and force a dissolution of the property.
- You should have a co-ownership agreement with the other person before purchasing the property so that you know exactly how you both will handle this type of situation.