Terminate Tenants in Common in Georgia

Do you have a tenants in common agreement in Georgia that you’re trying to terminate? It’s important to know how to handle the mortgage, taxes, paperwork, splitting up the assets, paying each other off, etc. Our attorneys ensure you set up all of this properly so there are no litigation, creditor, or lawsuit risks for this property. Fill out the form to talk to an attorney. 

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How To Terminate A Tenants In Common Agreement In Georgia

Are you looking to get out of a Tenants in Common agreement in Georgia?

Here is what to expect from this process:

  1. Review the Agreement. Check your existing agreement for any terms that might affect how you can exit.
  2. Discuss with Co-Owners. Talk to the other owners to see if you can reach a mutual agreement on how to proceed.
  3. Hire an Attorney. We will guide you through the legal aspects and help protect your interests.
  4. Decide on the Best Course of Action. Your can sell your share, sell the whole property, or partition the property.
  5. Understand the Financial Implications. Be aware of how mortgages and taxes get handled in this process. We will guide you through this.
  6. Prepare for Legal Processes. We will handle the necessary legal steps. This includes drafting agreements or filing court documents.

You’ll need to hire an attorney to handle this for you.

Legal Documents Needed To Terminate A Tenants In Common Agreement

Here are all the types of documents that we will manage for you. 

  1. Agreement Between Owners. All the owners need to write and sign a paper that says they agree to end the sharing of the property. This paper should say what will happen to the property.
  2. Paper to Split or Sell the Property. If the owners decide to divide the property, they need a special paper called a deed of partition. This paper makes it official that the property is split up. If they’re selling the property, they need a sale deed that’s used for selling houses and land.
  3. Quitclaim Deed. Sometimes, when one owner buys out the others, they need a quitclaim deed. This is a paper that transfers the property from one person to another.
  4. New Papers for Each Owner. If the property is split, each owner gets a new paper (deed) that says they own their part of the property.
  5. Mortgage Papers. If there’s a loan on the property, the owners might need to do some paperwork for the loan. This is especially true if one owner is going to be responsible for the loan now.
  6. Court Order. If the owners can’t agree on how to split or sell the property, they might have to go to court. The court will decide what to do with the property.
  7. Tax Forms. Depending on how the property is split or sold, there might be some tax forms to fill out.
  8. Sale Statement. If the property is sold, there’s a statement (called a HUD-1 statement) that shows all the money details of the sale.

Each situation is going to require different types of documents. 

We figure that out for you and manage the paperwork on your behalf. 

This way, you don’t have to worry about anything. 

What Has To Happen For Tenants In Common To Get Terminated?

There are several steps that have to happen for a TIC to get terminated. 

Those steps are: 

  • Agree with Other Owners. All the owners need to agree on how to end the agreement.
  • Sell or Buyout. You can choose to sell the property and share the money, or one owner can buy the others out.
  • Ask the Court for Help. If owners can’t agree, one owner can ask a court to decide. This might lead to selling the property.
  • Do the Paperwork. Make sure all the legal papers are filled out and filed correctly.
  • Sort Out Shared Bills. Take care of any shared bills like mortgage or property taxes.
  • Make it Official. File the right documents with the government to make everything official.

This is a high overview of the process as the details can become lengthy. 

Fill out the form on this page to have an attorney handle this for you.

What Are The Risks?

There are risks to ending a tenancy in common agreement in Georgia. 

It’s highly recommended that you involve an attorney for this. 

Here are the risks you have to be aware of:

  1. Dividing the Property Gets Tricky. Let’s say you decide to end the agreement. Figuring out who gets what part of the property can be hard. This is especially true if everyone doesn’t agree.
  2. Arguments Among Owners. Ending the agreement might lead to fights between you and the other owners. This is especially true if they don’t agree on how to split things up.
  3. Money Matters. There could be money issues, like needing to get a new loan for the property. This could affect your credit score and your finances of the property.
  4. Tax Problems. When you end the agreement, you might have to pay capital gains tax, which could cost you a lot.
  5. Changes in Planning for the Future. Let’s say you’re making plans for your stuff after you’re gone (like a will or trust). Changing how you own the property can mess up those plans.

Property Values And Taxes

The property value and taxes are core issues when terminating these agreements. 

Valuing Your Property

Here is how to approach valuing the property: 

  1. Hire Someone to Appraise the Property. It’s a good idea to get a professional appraiser. They can give an unbiased opinion on how much the property is worth based on its size, condition, and where it is.
  2. Look at Similar Property Sales. Checking how much other similar properties have sold for recently can help you understand how much your property might be worth.
  3. Check the Property’s Condition. The value can change depending on how old the property is, how well it’s been looked after, and if there have been any big improvements or repairs needed.
  4. Understand the Market. The real estate market changes. Knowing if it’s a good time to buy or sell can affect the property’s value.

Talk to Real Estate Experts. Real estate agents know a lot about property values and can give you good advice.

What Taxes You’ll Pay

This won’t calculate your taxes as that would be too difficult. 

But these are the things to think about when it comes to your taxes. 

  1. Capital Gains Tax. If the property has gone up in value since you bought it, you might have to pay capital gains tax. This tax is on the profit you make from selling your part of the property.
  2. Property Taxes. Make sure all property taxes are up to date. Unpaid taxes could be a problem for the owners and the termination process. 
  3. Dividing Tax Responsibilities. It’s important to decide who pays what in taxes. This should be fair and based on how much of the property each person owns.
  4. Taxes If You Sell the Property. If you sell the property, there might be taxes on the sale. The amount can depend on how long you’ve owned the property and how much money you make from the sale.
  5. Taxes If You Buy Out Other Owners. If one owner buys out the others, there might be taxes for both the buyer and the sellers. The sellers might have to pay capital gains tax, and the buyer might have new tax responsibilities.

How To Refinance A Mortgage On A TIC Property

Refinancing a mortgage when you’re ending a TIC agreement in Georgia is complex.

But here’s a simplified guide to help you understand the process:

  1. Check the Current Mortgage. First, look at the current mortgage details. Understand how much is owed, the interest rate, and any terms or conditions.
  2. Talk to a Mortgage Advisor. It’s a good idea to speak with a mortgage advisor or lender. They can explain your options for refinancing and what you need to do.
  3. Get Approval from Co-Owners. If you have co-owners, you’ll need their agreement to refinance. This is important because it affects everyone involved.
  4. Apply for Refinancing. You’ll need to fill out an application with a bank or mortgage company. They will check your credit score and financial situation.
  5. Get the Property Valued. The bank will want to know the current value of the property. They might send someone to appraise it.
  6. Review the Loan Offers. Look at the different loan options you’re offered. Check the interest rates, monthly payments, and any fees.
  7. Consider the Impact on the Agreement. Understand how refinancing will affect the Tenants in Common agreement. Will it change anyone’s share or rights?
  8. Talk To A Lawyer. We will make sure everything is done right. (Especially when changing the terms of property ownership.)
  9. Finalize the Loan. Once you choose a loan, you’ll need to sign the paperwork. Make sure you read and understand everything before signing.
  10. Update the Tenants in Common Agreement. If the refinancing changes who owns what part of the property, we will update the agreement.
  11. Communicate with Co-Owners. Keep talking with any co-owners throughout the process. It’s important that everyone knows what’s happening.
  12. Plan for the Future. Think about how this refinancing will affect your future plans for the property.

Refinancing the property to dissolve a TIC agreement involves a lot of steps and legal details.

So it’s really important to get advice from mortgage advisors and lawyers.

We make sure everything goes smoothly and everyone’s interests are protected.

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We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)

Who We Are

We are a local, family-owned, Georgia conservatorship law firm. Melissa went to John Marshall Law School in downtown Atlanta. We moved to Alpharetta after law school in 2017. After that, we moved to Suwanee to follow Shawn’s engineering job. Then, we settled down in Buford after having our first child. Now, we have two little ones. We spend the weekends going to Gwinnett County parks with our friends and kids, going to Jaemor and the Suwanee farmer’s markets to support local farmers, and camping/hiking at Lake Lanier with the kids. Thanks for joining and supporting our local family business!

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