Jose Lozada-Vargas, v. Elandia Ramirez

Jose Lozada-Vargas, v. Elandia Ramirez

Civil Action-Property Law-Real Estate-Partition-Owelty-Unmarried Individuals-Property Deeded to be Owned as Tenants by the Entireties-Intention of the Parties-Credit-Rental Value-Property Improvement Expenses-Mortgage Payments

Before the Court is Jose Lozada-Vargas’ (“Plaintiff’s”) Complaint seeking partition of jointly owned real estate that was deeded to the parties as “tenants by the entirities.”.  Elandia Ramirez (“Defendant”) continued to reside at the property after Plaintiff left the property in the Spring of 2020.  Following a hearing, the Court in October of 2024 declared the parties to be the owners of the property, extinguished the tenancy by the entirety created by the deed and declared the property to be owned by the parties as tenants in common. 

1.  During a part 1 partition dispute, the court must determine the identity of the property owners and whether the property must be partitioned.     

2.  During a part 2 partition dispute, the court must determine how the property is to be divided including whether to afford reimbursement for credits, contributions and set offs, which is known as owelty.

3.  Where one (1) cotenant in common expends funds to preserve or to improve the property, the court may include such expense as part of owelty.  

4.  When two unmarried persons purport to create a tenancy by the entirety, the court must determine whether the joint ownership was intended to be a joint tenancy or a tenancy in common because a tenancy by the entirety cannot exist legally between unmarried persons.

5.  Rental value may be awarded as between tenants in common, but not as between joint tenants. 

6.  The appropriate form of a property deeded as tenants by the entirety by unmarried individuals depends entirely upon the intention of the parties. 

7.  Defendant is entitled to credits for amounts she paid to preserve and improve the property following separation, not credits for amounts paid prior to separation or for living expenses and other expenditures that did not improve the value of the property. 

8.  Plaintiff is entitled to credit for rental value of the property since October of 2024 when the Court declared the parties to own the property as tenants in common, not prior to that time, where the parties deeded the property as tenants by the entirety. 

L.C.C.C.P. No. 2022-01337, Opinion by Bradford H. Charles, Judge, February 3, 2025.