QUOTE (LornaRush @ Mar 19 2008, 05:19 PM) Can some please tell me what happens if a JV partner, who is on title, dies? If the property share is mentioned in the JV partner`s will does that tie up the jointly owned property in probate, causing the property and any business with it such as refinancing, selling etc. to be frozen until the deceased`s will is finished with probate?
What if anything can be in the Joint Venture agreement to manage this problem, it if is a problem? Is the situation triggered automatically just by the JV Partner being on title?
Thanks for any help that can be given.
Hi Lorna,
Sadly I can share some insight into your question. But, keep in mind I`m not a lawyer, so please consult with a legal professional to get the facts pertaining to your unique situation.
In my JVA I have clauses that are clearly written out to handle the investment`s management in the event that one of the JV`s dies. This is specific to how the mortgage is set up (if I`m holding title, if my partner is holding title or if jointly) and the wishes of the JVP.
If the JVP holds the mortgage solely (direct title) and has directed his will with instructions that agree with your JVA, then it should follow what you outlined there. If the JVA is unclear or the Will unclear then a family member may have different intentions and needs.
Banks have their own clauses to deal with the death of their borrowers as well, so that is something that you`ll need to investigate prior to drawing up your JVA, to handle what the bank expects be it; paid out in full or an allocated time period to arrange a new mortgage, etc..
Speak to your lawyer as you set up the JVA. If your partner has passed, speak to your lawyer and the partner`s lawyer to determine what is the best route to go in accordance to the original plan that you and your JV agreed upon.
If the JVA and partner`s intention is unclear, then yes, probate could/will tie things up or at least slow them down.
Regards,
Todd-
