My name is Ira Smith, president of Ira Smith Trustee & Receiver Inc.
. First, we hope that you and your entire
family are remaining safe, healthy and secure during this COVID-19 pandemic,
Ira Smith Trustee & Receiver Inc.
is fully operational.
Both Brandon Smith and myself
are holding all meetings by telephone or video meeting.
So if you have any questions at all about
this Brandon Blog or anything else, shoot us an email.
Give us a phone call.
We would love to hear from you.
Today's Brandon Blog is titled Tenants
in Common versus Joint Tenancy In Ontario The Modern Rules Of A 1 Co-owner
Unhappy Bankruptcy.
Brandon discusses a recent decision from the Ontario court
dealing with the bankruptcy of one co-owner.
In
a real estate property,
Brandon discusses the two types of ownership, either tenants in common
or joint tenancy and describes what each one means
and then goes through the case itself to show how the bankruptcy of one co-owner,
although it does not directly affect other
co-owners, ultimately, it does have an effect
on them. So I hope you can watch until the end
of the video because I know you will get value from it.
Brandon first describes
the two kinds of ownership of real estate, when you have more than one person owning
it and they are again either tenants in common or joint tenancy.
Brandon describes what each one means
and how they differ.
And then discusses a recent decision from the Ontario Bankruptcy Court.
Regular readers of Brandon Blog know that in the past he has written about
what happens to a person or company's assets when they declare bankruptcy.
The assets subject to the rights of secured creditors,
and also for individuals, subject to their personal exemption limits,
the non-exempt assets
vest in the Trustee, and this includes whatever equity
someone has in real estate, either as a sole owner or a co-owner.
In the bankruptcy case.
Brandon describes how this bankrupt
and the bankrupt's mother who were co-owners of the home they lived in
were always evading the Trustee's queries about the bankrupt's
interest in the home. The bankrupt did not disclose his interest
in his sworn statement of affairs, but the Trustee ultimately learned
and spent years chasing the bankrupt to get information on
The co-ownership. The Trustee finally got sufficient
information, but could not reach a settlement
with the bankrupt and his mother.
Because in a situation like that, where there is c-owners,
the natural purchaser of the bankrupt's equity are the other co-owners.
So in this case, the Trustee had to make
an application to court and what the Trustee was asking for
was to partition off the bankrupt's ownership interest and sell it off.
The judge, in reviewing everything and frankly, not believing any evidence
of the bankrupt, said, I'm not going to partition it.
I'm going to order that the entire property gets sold.
And notwithstanding that the bankrupt's mother is 90 years old,
the whole house has to get sold and they're going to live somewhere else.
What the judge did was very smart.
He said, I'm staying my order for three months and in that time
the bankrupt and his mother better get professional advice.
And if they can reach a settlement with the Trustee within those three months.
Then the house never has to get sold.
But if somebody doesn't buy that bankrupt's equity from the Trustee.
In those three months,
then the order goes into effect and the Trustee can sell the entire house
and the son and the mother will have to move out.
Because keep in mind, what the Trustee wants is just the sum of money
equal to what the bankrupt's equity
in the home is. The Trustee really doesn't want to have
to sell the whole house if the Trustee doesn't have to.
So that in a very short form is what the case was about.
And what the effect on co-owners is when one of the co-owners
of the real estate goes bankrupt.
I invite you to read the entire
Brandon Blog below, because I know you will find it very informative.
Once again, Ira Smith Trustee & Receiver Inc.
is fully operational.
Both Brandon Smith and myself are available to answer any questions you
might have about the blog or anything else at all.
Shoot us a message, give us a phone call.
We would love to hear from you.
And we hope that you and your entire family remain safe, healthy and secure
during this ongoing coronavirus pandemic.