subject: Property Co-Ownership: Understanding Joint And Several Liability [print this page] Property Co-Ownership: Understanding Joint And Several Liability
"Joint and several liability" is related to the law, like many terms you encounter in the field of real estate. While you may feel the term is relatively self-explanatory, its relation to real estate and how it impacts you as a house owner is not quite as clear.
Law dictionaries describe the term as an obligation entered into by at least two individuals, making each one accountable severally and everyone accountable jointly. Its definition is really quite easy. In simpler words it just means that a creditor can decide to sue anyone who enters into a contract with one or more people. This means that the creditor has the choice to sue just one person in the group or the group as a whole for the full amount. So as to be applicable, this should be indicated in the contract's conditions.
Most law students study about joint and several liability through their course in Tort Law. How it relates to the property they possess is how most property owners will comprehend it themselves. You, as a homeowner, can be held jointly and severally accountable if you invite a guest to your property and they are injured and choose to sue. Sometimes, the other homeowner can hold the first property owner jointly and severally accountable for property damage committed versus property that both homeowners own.
Think about it as related to a method by which people can apply for a credit card jointly. If your co-credit card holder doesn't pay the bill, the credit card company can hold you both liable and just go after you, despite the fact that it wasn't any fault of your own. The same is frequently true for property possessed jointly. The scenario about the credit card described above is where this most frequently comes into play. If your property co-owner fails to pay, the mortgage lender can go after you, your co-owner or both of you jointly.
While joint and several liability may sound as though it is entirely unrelated to property, liability for a civil wrongdoing is not where this legal concept ends. Property owners who co-possess property need to take care so their guests remain secure on it. It is also a prudent choice to make sure the co-owner is financially stable and responsible to ensure the mortgage will continue to be paid, thus avoiding the pesky little term completely in the process.
