New York Real Estate Lawyers Blog
Often in New York, property is jointly owned by two or more individuals or legal entities, such as corporations. This can happen with both residential property and commercial property. One of the major causes of joint ownership of property can occur when the original owner passes away and leaves the property in their will to their children, or other multiple owners. In addition, there can be situations where two or more individuals buy property jointly, and then one of those individuals transfers their interest in the property to another person.
In the case of residential property, conflicts can arise when there are multiple owners of property. It may be that one of the joint co-owners lives at the property, and the other does not. In that case, the person who lives at the property is usually responsible for the upkeep of the property, including routine maintenance, as well as paying the costs and expenses of the property. These costs and expenses can include property insurance, utilities such as electricity and heating, and property taxes. However, the person living at the property also derives the benefit of living at the property without paying rent. The non-occupying party may not agree to be financially responsible for a property in which he does not live. Having co-owners who do not both live at the property can be an inherent source of conflict.
Where the property is commercial in nature, there can be similar conflicts, although of course no one is living at the premises. If the property was purchased as an investment, the joint owners may not agree on the proper time, if at all, to sell the property. There can also be disagreements as to the type of commercial tenants to seek for rental of the property, the length of the lease to offer to potential tenants, as well as other lease terms.