Q: Two friends purchase an investment home together (JTWROS). Friend A retains a law firm to remove Friend B from title.

A: Friend B's options and potential defenses in this scenario would depend on various factors. Here are some potential options and defenses Friend B might consider:

Review the Original Agreement: Friend B should carefully review any agreements or contracts signed at the time of purchasing the investment property. This could include the purchase contract, any partnership agreements, or other documentation outlining the terms of ownership. If these documents clearly establish Friend B's ownership rights, it could serve as a strong defense against attempts to remove them from the title.

Joint Tenancy with Right of Survivorship (JTWROS): If the property was purchased as JTWROS, both friends have equal ownership rights to the property, and Friend A may not have the unilateral authority to remove Friend B from the title without their consent. Friend B could argue that their ownership interest is protected under the JTWROS arrangement.

Contribution to Expenses: Friend B could argue that they contributed to the expenses associated with the property, such as mortgage payments, property taxes, or maintenance costs, despite not living in the property. This could strengthen their claim to ownership and undermine Friend A's assertion that they were merely a co-signer.

Equitable Contribution: Friend B might argue that they contributed to the appreciation of the property through their creditworthiness and financial stability, which enabled the purchase of the property in the first place. They could claim a right to a portion of the appreciation in line with their contributions.

Regarding the legal fees, $20,000 for defending a Quiet Title action may be within the typical range depending on the complexity of the case, the jurisdiction, and the attorney's hourly rates. Defending against a Quiet Title action can involve extensive legal research, document preparation, court appearances, and negotiations, all of which can contribute to higher legal fees. However, the actual costs can vary significantly. Some attorneys may offer a contingency fee arrangement to avoid a large upfront expenditure.

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A: In this scenario, Friend B has several options to defend their ownership interest in the property. Here are some key points and potential defenses:

1. JTWROS (Joint Tenancy with Right of Survivorship): This type of ownership means that both friends have an equal and undivided interest in the property. Friend A cannot unilaterally remove Friend B from the title without their consent or a court order.

2. Contributions to the purchase: Although Friend A provided the down payment and closing costs, Friend B's strong credit likely enabled the loan qualification. This contribution could be considered valuable and may support Friend B's claim to ownership.

3. Verbal agreements and intentions: If there were any verbal agreements or understandings between the friends regarding the nature of their ownership, these could be used to support Friend B's position. However, proving verbal agreements can be challenging.

4. Potential partition action: Friend B could file a partition action to force the sale of the property and divide the proceeds based on their respective interests. This could be a countermeasure to the quiet title action.

5. Unjust enrichment: Friend B could argue that allowing Friend A to keep the entire appreciated value of the property would result in unjust enrichment, especially considering Friend B's role in securing the loan.

Regarding the legal fees, $20,000 might be on the higher end for a case like this, but it's not uncommon. The actual cost will depend on factors such as the complexity of the case, the attorney's experience, and the location. Friend B could explore alternative dispute resolution methods, such as mediation, which may be less expensive than litigation.

Ultimately, Friend B should consult with an experienced real estate attorney to assess the specific facts of the case and develop a strong defense strategy. They may also want to explore the possibility of negotiating a settlement with Friend A to avoid costly litigation.

A: Thank you for asking the question!

Quiet title action

It is a remedy in the court of equity and it is about fairness. Intention of the parties at the time of obtaining the property is important.

Intention of the parties can be establish by parties testimony, and from facts implicitly. B's credit was run for the purchase of property, but he did not receive any consideration in return. B expected consideration and that is why B's name was added to the property as JTWRS and remained in the title up to now.

The court does not get into the value of consideration. But the share/percentage allocated to each party is based on fairness and intention. Court considered the type of ownership is JTWRS, with no specific allocation of percentages. Also, A has paid all the expenses. Probably, B can claim up to 50% of the property, but during partition A gets reimbursement for part of A's expenditures (because B has not participated in finances at all).

Since the ownership was JTWRS, both A and B has the right of access to the whole property. If B was not ousted from the property, A has likely not gained the title of the whole property under adverse possession.

It seems B has meritorious claim over the title of the property.

Quiet title action is done through litigation in Civil court. It can take 2-3 years. The price can vary based on how soon parties settle, how complicated the case is, etc.

This is merely discussion of general laws and not a legal advice. For a comprehensive advise, more specific facts and investigation are needed. I recommend you consult with an attorney in more detail.