I own an investment property which was in need of repairs. Didn't have the necessary funds to do so, brought in a friend, he gave me $7,000 and I put him on the deed as a tenant in common. He defaulted immediately in providing necessary physical, as well as further monetary help in fixing or maintaining the property. I have been left to maintain the property myself. Financially, I fell behind in payments, and foreclosure has ensued. Upon being served the complaint come to find he has several thousand dollars of liens in his name on the property, and I cannot do anything. He refuses to come off the deed or propvide any help, and even has the nerve to want "his" portion of rent proceeds!
What would be the best way to try to remove him from the deed? An action to partion or a quiet title suit? Please help!

First, did you have any sort of contract detailing what he would do in return for getting a share of the property? Second, what is the basis of the liens he has filed and are they subservient to the mortgage?

By the way, neither action (partition or quiet title) is appropriate in this situation.

Yes, if you did not merely give him a lien but make him equal owner, I agree neither action will work here, In fact since you made him equal owner, the liens would appear to be valid and something you have to also deal with. In fact he is legally entitled to his share of the rent. It appears you need to sue him under the terms of your partnership, if this was in writing, great, if not, you have really just sold 1/2 the house for 7,000 dollars.

I will even make it worst, if you had a loan on the property and did not get their permission to sign over 1/2 of the house, they may even have a reason to call the loan due and payable as a breech in the terms.

You need to sit down with any partnership agreement, list of all liens ( yours and his and joint) with a local real estate attorney, There may be little you can do honestly.

Nothing... everything done on handshake
The liens are on his name, though filed against the property, and they all came after the mortgage

Yes that is how liens work, all sounds legal. And that may be the most costly handshake of your life.

But is not a deed a mere conveyance of title... ownership, and not an assignment of rents or a right to proceeds?

An action to quiet title is used when title to the property is not clear on the record and must be cleared judicially. That is not the case here.

A partition is used when the co-owners cannot agree to sell the property or buy each other out. But in your case if you buy him out you will still be left with having to clear all of the liens that were filed against him after he became an owner.

In your case you will have to file a lawsuit against your "friend" for his share of the costs of maintenance AND for the damage he has done to the value of the property by his allowing liens to be filed. Unfortunately if your friend has that many liens against him it's unlikely that he'll have the money to pay you if/when you win a judgment against him.

You need to see an attorney to get this resolved.

I'm not so sure I agree with Chuck about these liens. To place a lien on a property, the owner of the property has to owe you money. So the only reason I can see is because he is owed his share of the rent. But I'm not even sure that's enough. I think you need to investigate these liens and what they are protecting. Also, if those liens are subservient to the mortgage then they really don't figure into the situation. Let the property be foreclosed on and his credit will be affected just as much as yours.

But if you can't prove that he was supposed perform some work in return for a share of the property, then there is probably nothing you can do to get him off the property. He's going to claim he paid you $7K for his share and he can prove that.

So, a partition is always for the sale of a property? It cannot have a person removed from a deed?

These liens he has are his credit cards, car loan, his consumer debt... not mine

but is not a deed a mere conveyance of title...ownership, and not an assignment of rents or a right to proceeds?

Right, it's a conveyance of ownership and ownership entitles an owner to a share of the proceeds.


so, a partition is always for the sale of a property? it cannot have a person removed from a deed?

Correct.

Now reading Lisa's response I was assuming that the liens were placed BY him. I hadn't considered that they were placed AGAINST him. I.E. that he had put up his share of the property as collateral.

So her advice about suing is right on.

Sorry to have to say this but you screwed yourself by not getting this all down in writing as to what his responsibility and entitlements were.

You can't have someone removed from a deed unless you can prove that he committed fraud, which is extremely difficult. And even if you could get him removed for fraud his liens would remain. So it doesn't do you much good.

As I said, you need to see an attorney to see if there is anything salvageable in this situation. It's not looking very good from what you've told us here.

OK, Hard lessoned learned... Thank You All

Good luck