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.
@Minh Le has done this in the San Jose market if I recall correctly. Does Jenny's approach sound correct to you?
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.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing