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  • Home
  • Our Attorneys
    • Nathan Natori
  • About Us
    • Your Initial Meeting
    • Clients
    • Testimonials
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    • Outer Island
      • Big Island
      • Maui
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      • Purchase & Sale of Hawaii Real Estate
      • Agreement of Sale
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Terminating Co-Ownership of Hawaii Real Estate Property

Business people negotiating a contractThere are times when co-owners of Hawaii real property are engaged in a dispute and no longer wish to continue co-ownership of such property, or one party is no longer making payments on the mortgage and the paying party wants to remove the non-paying party from title.

The question that usually follows is what are the co-owners’ options if they wish to sever such relationship (other ways to phrase this include, “How can I kick off someone from title to the Hawaii real estate” and “How do I remove a co-owner”).

 

How Do You Terminate Co-Ownership of Real Estate in Hawaii?

In the event that there is no prior written agreement among the co-owners setting forth each owner’s obligations (such as a co-tenancy agreement) and the procedures for resolving disputes, the co-owners are basically left with two options:

  • Work out some agreement to resolve the dispute; or
  • Terminate the co-owner relationship through a court supervised partition action

The co-owners should first try to resolve their differences and come to some compromise.  By reaching such a compromise, the co-owners would not need a partition action which can be a very costly process.  However, if seeking such an agreement proves to be a dead end, then a Hawaii partition action is necessary.

What Is Termination of Co-Ownership by Partition?

In a partition action, one or more of the owners files a lawsuit against the remaining owner(s).  The filing party is also required to join as a party every person having or claiming to have any legal or equitable right, title, or interest in the property described in the lawsuit.

Once a partition action is filed, the court has the jurisdiction to partition the real property by (1) partition in kind or (2) partition by sale.  A “partition in kind” occurs when the court physically divides the property and each owner ends up controlling an individual portion of the property.

A “partition by sale” is accomplished by selling the entire property at a public auction and dividing the proceeds among the owners according to their respective interests in the property.  The courts tend to favor a partition in kind first, but if such division is not feasible, then the court will proceed with a partition by sale.

Contact Our Attorneys

As you can see, terminating a co-ownership relationship of Hawaii real property is not that simple and can be costly.  Money is best spent on having us document the original agreement between the co-owners. However, if that is already too late, contact us and, as your attorneys, we can guide you through this difficult process.

More Articles on Hawaii Real Estate Law

  • Duties and Responsibilities of the Selling Agent Regarding the Hawaii Seller’s Real Property Disclosure Statement for Hawaii Residential Real Estate
  • Hawaii Agreement of Sale
  • Hawaii “For Sale by Owner”
  • Hawaii Commercial Lease Interest Rate and Usury
  • Hawaii Commercial Leases: Issues You Must Consider
  • Hawaii Contractors Disclosure Requirements to Hawaii Homeowners
  • Hawaii Land Court Petitions Explained
  • Hawaii Regular System and Land Court Recording System
  • Hiring a Hawaii General Contractor
  • Landlords Who Reside Outside of Hawaii Are Required to Have Hawaii Property Managers
  • Mandatory Seller Disclosures for Hawaii Residential Real Estate
  • Probate of Hawaii Real Estate Owned by Japanese Citizens
  • Should a Hawaii Purchase Contract (DROA) Be Used in Purchasing Hawaii Commercial Property?
  • Terminating Co-Ownership of Hawaii Real Estate Property
  • The Process of Claiming and Attaching a Mechanic’s or Materialman’s Lien in Hawaii
  • The Role of Hawaii Attorneys in Purchasing Hawaii Residential Real Estate
  • The Security Deposit Under Hawaii’s Residential Landlord-Tenant Code
  • Understanding the “As Is” Addendum to the Hawaii Association of Realtor’s Standard Form Purchase Contract
  • Using a Letter of Intent in a Hawaii Real Estate Sale or Purchase
  • What Is the Hawaii Dual Agency Disclosure Form?
  • Why a Landlord Must Tailor the Standard Hawaii Rental Agreement
  • Why a Purchaser of Hawaii Real Estate May Want to Delete an Arbitration Paragraph
  • Why Hawaii Commercial Leases for Exactly a Five Year Term Should Be Avoided
  • Why Your Surveying Paragraph in a Hawaii Purchase Contract May be Inadequate When Purchasing Hawaii Residential Real Estate

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Nathan is thorough, detailed, and knowledgeable.

Natori Law Office LLLC
1003 Bishop St
Pauahi Tower, Ste 1360
Honolulu, HI 96813

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