Joint tenancy in common

[JennK2009]

What is the name of your state (only U.S. law)? Wisconsin

I have some land with my brother, Mack, and his best friend, Jack. It is deeded as such. Jack really needs some money right now (custody stuff) and wants to take a loan out against our property. This is fine with us. Do we need to provide anything and what’s our (me and Mack) risk?

We all own it outright. Thanks for your attention.

 

[latigo]

What is the name of your state (only U.S. law)? Wisconsin

I have some land with my brother, Mack, and his best friend, Jack. It is deeded as such. Jack really needs some money right now (custody stuff) and wants to take a loan out against our property. This is fine with us. Do we need to provide anything and what’s our (me and Mack) risk?

We all own it outright. Thanks for your attention.

What do you reckon are the risks? Aren't they rather obvious?

The only smart thing to do is to sell the property, divvy up the proceeds and get out from under this stupid “estate in cotenancy”!

Without question holding title to land in cotenancy - a/k/a as tenants in common - (which is what you three have unfortunately created) is without question the worst, most hazardous, precarious and potentially costly means of owning real property!

If you don’t do it now and before allowing a mortgage lien to be slapped on it, you will eventually wish you had. Guaranteed.

 

[JennK2009]

Ouch! Thank you for that wake up call, latigo. I had no idea. In our defense, we bought it together in our early 20’s. We all pitched in on it, and really never considered it since then. It was always considered off limits to any one person’s loans; it was our “safe house”. Twenty years (marriages, kids, etc) later, I’m certain you are right. Thanks again. I’m on it.

 

[anteater]

Lats has incontrovertible evidence that the Fall occurred because Adam and Eve owned the Garden as tenants in common.

(And Abel's problems began when he granted a power of attorney to Cain.)

 

[JennK2009]

Not quite sure why you are scoffing at this. Latigo was right – we have a mess on our hands. We each pitched in about a couple years’ salary at the time. It was and is family land. Mack’s allegiance to Jack stems from their time in the service together. I can’t argue with that. Thanks for your input.

 

[anteater]

Not quite sure why you are scoffing at this.

It wasn't scoffing. It was more of a friendly elbow to the ribs. Mention tenancy in common to Lats and the apocalyptic juices really begin flowing. As a matter of fact, the adjectives were rather restrained. I was waiting for evil... demonic... nefarious...

Not that Lats is wrong...