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oopser_2000 · Joined: 12 Jan 2010 Posts: 1 1.47 Dollars($)

Hi and thank you ahead of time for your responses.

My wife and I, and my father-in-law (a single man) bought a chalet together (2nd home) in washington state. I looked at the paperwork and couldn't find a specific type of joint tenancy listed, just our names (my wife and I, and father-in-law...a single man). We both put equal amounts as down payments with the understanding of each owning 50%. (probably a mistake but......) The mortgage on the place is only in my name and my wife's name, however my father-in-law does pay half of the payment by sending me a check each month. He also claims half the interest on his tax return.

He has since remarried.

I have several questions and appreciate any answers.
1. What would happen to my father-in-law's ownership if he passes away (assuming no will has been done). My concern is that his new wife get's his portion and we are 100% financially responsible. If we sell the place, does she get half, and we still have to pay off the loan with only our half?
2. Is "tenants in common" assumed in this situation (I read that somewhere), or did I miss it defined in the deed/documents somewhere? Maybe default is joint tenancy with right of survivorship.....I don't know but would love to.
3. What can I do to mitigage this risk/concern and avoid the situation in my first question?
4. If we want to sell the place and part ways, where am I at risk and what can I do to mitigate my risk?

Thank you so much for the help.

Best Regards.....

jameshogg · Posted: Tue Jan 12, 2010 9:05 pm Post subject:

Hi oopser,

As your father-in-law's name is mentioned in the property deed, then his new wife will be able to claim his share of the property after his death. If she claims the heirship of the property, then she can claim her share from the property sale. As there is nothing specified in your property deed, I think the ownership of the property will be considered as tenants in common. The three of you can record a new property deed wherein the ownership will be mentioned as joint tenancy with right to survivorship. If you want to sell the property and part ways, you'll have to clear off the mortgage. As your father-in-law's name is not on the mortgage, the lender will not come after him to get the deficient amount. You can refinance the loan and include his name in the mortgage docs.

Thanks

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What type of joint tenancy and more?