Title on home owners insurance when 4 siblings own the house.

[Reseeker]

check with your personal lawyer...I am NOT of the understanding it requires agreement among owners. to rent it out ...btw sitting empty for years will take forever to make up economic loss ...not to mention uninsurability risk of empty place ...and as a distant problem, the paper loss deductibility for income tax purposes may be up for debate with IRS if it's not in service Somebody rates an F at Economics....yes, I've held property waiting for an upturn in market ...but in hindsight my conservative stock market picks did better and cash out of real state would have been better ...

Hello HRZ, Thanks for your response. The Grant Deed is Tenants in Common. I think that means we all have equal access to the property; so from that base, we need agreement. I can’t restrict any other owners access & so we would all have to agree.

 

[HRZ]

You are assuming answers wo checking with real estate lawyer of your choice

 

[Reseeker]

Hi HRZ, you are saying I could change the locks & rent the house out. But tenants in common says that we all have equal access. What is to prevent other owners from changing the locks again to gain acces? Tenants in common property says equal access by all owners. Can you provide more information why my decision to rent would outweigh the other owners right to access? The economic loss: yes, I figure I am down tens of thousands in lost rent. But the property was appraised at the time we inherited it at more that what it is currently worth today (it has not totally recovered from the 07-08 real estate crash), so I was thinking that if we did sell it now, we would have a loss for that reason. But I don’t think I could claim a loss for rent that was never received. Please, more info. Thankyou HRZ

 

[Reseeker]

You are assuming answers wo checking with real estate lawyer of your choice

OK, Thankyou for the information!

 

[HRZ]

There is no tax loss for income you never got .

An investment property that sells for a loss...is most likely a long term loss.

I didnt post that you could bar other owners ...I merely suggested you had right to use it ..and that includes rent it if you can find a willing tenant ...check the limits of what you can do with a lawyer of your choice

 

[Reseeker]

I do not see how you can avoid a partnership if you are going to be renting out a property owned by all of you. It would be a tax nightmare, otherwise.

LdiJ, yes—point that I had not thought about. Also, I believe partnership is the only way to represent our interests equally and avoid problems going forward. Any other policy title seems to require unequal representation/influence.

 

[justalayman]

I don’t know about it being a tax nightmare if you don’t create a partnership. Due to the TIC costs and profits are divided as ownership shares dictate. To me, creating s business entity actually increases the complexity of your taxes.

Haven’t read the entire thread but am making this comment based on the title.


Any one of you can purchase insururance on your share of the property. None of you are obligated to insure the insterest of any other. Basically, whoever pays for the policy they negotiate is in control of that policy.

You can have a single policy that covers the entire asset with each being listed as beneficiaries but in such a situation each of you should be paying your fair share of the policy.


As tenants in common you all have full rights to use the property. The problem with that is any owner can bind the entire property to a something such as a lease. Each owner would be due a share of profits based on the share of ownership and yes, it does actually seem to be contrary to each owner having equal access but legally it isn’t. It can be the basis for legal actions to terminate the tenancy (and may lead to such a termination but all is fact specific). It is wise to avoid such situations

 

[HRZ]

Just how long do you want to sit there with a wasting asset due to brother ...what as purpose of removing propane tank...to make it uninhabitable ? IF one owner can bind all as to a lease, I'd get it leased pronto ...as a done deal ...and of course share net profits with other owners