Help with switching ownership structure from Joint Tenancy to Tenancy in Common

Help with switching ownership structure from Joint Tenancy to Tenancy in Common

Investor · Oakland, CA · Member since 2012 · 33 posts · 40 votes

Hello - I'd like to change ownership structure for a property (my first deal) from Joint Tenancy to Tenancy in Common. Same owners.

Looks like I'll have to do the following. Is this correct? 

  • Grant Deed: Fill out, notarize, definitely file with County Recorder
  • Tenancy in Common Agreement: Fill out, notarize, maybe file with County Recorder

It seems like I can fill most of this out on my own, but I sure could use an experienced second set of eyes. 

Who would be the appropriate person that could review these documents before I file them? Any recommendations? For context, this is for San Bernadino County, California. 

Thank you! 

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  • Johnson H.Pro Member
    Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
    11y

    @Account Closed  has done this in the San Jose market if I recall correctly. Does Jenny's approach sound correct to you?

  • Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    11y

    Hi Jenny,

    I used to review hundreds, if not thousands, of deeds and have seen all kinds so I don't even know which way is the right way to do it.  

    In your case, all you need to do is file a Grant Deed, where you're deeding it from A and B as joint tenants to A and B as tenants in common with XX% undivided interest. I'm not sure why you have to file a Tenancy in Common Agreement. Also, I have never seen anyone filed a TIC Agreement, but that doesn't mean it doesn't exist.

    Note:  Even though there is no change in ownership, there is a possibility that the property may get re-assessed to the current fair market value.  If you bought them cheap, it might be costly.  

    I have also seen other did a Correction Deed from JT to TIC. Whether or not your title insurance policy would become invalid the moment you changed it from JT to TIC is another issue.

    Unfortunately, I don't even know which way is the right way of doing it.  Please consult an attorney because your escrow officer will not give you any advice.

    Good luck.

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