Like many terms you encounter in the field of real estate, "joint and several liability" is related to the law. While you may think the term is relatively self-explanatory, its relation to real estate and how it affects you as a home owner is not quite as intuitive.
Law dictionaries describe the term as being an obligation entered into by at least two people, making both liable severally and all liable jointly. What this means is actually quite simple. In plainer language it simply means that a creditor can choose to sue anyone who enters into a contract with one or more other people. The creditor can sue the group as a whole or choose to sue only one member of the contracting group for the entire amount. The contract terms must state this for it to apply.
A course in Tort Law is how most law students learn about joint and several liability. How it relates to the property they own is how most homeowners will understand it themselves. When a guest is injured on their property and subsequently sues for damages, homeowners can be held jointly and severally liable. Other times, the other homeowner can hold the first homeowner jointly and severally liable for property damage committed against property that both homeowners own.
A different way to think about it is how people can jointly apply for a credit card. The credit card company can attempt to obtain money from both card holders or, a more likely scenario, they can go after the one person who is in a better financial situation to pay the bill. Property owned jointly often ends up coming out the same way. The situation described above is where this most commonly comes into play. The lender can sue the owner in default, the owner who isn't, or both jointly, just like in the credit card scenario above.
Even though the term doesn't seem to relate to property at first sniff, this legal concept does not end at liability for a civil wrongdoing. Homeowners who co-own property need to take care so their guests remain safe on it. Avoid the pesky little legal term entirely by making sure anyone with whom you're considering co-owning property is financially stable to ensure the mortgage is paid on time each month.
Law dictionaries describe the term as being an obligation entered into by at least two people, making both liable severally and all liable jointly. What this means is actually quite simple. In plainer language it simply means that a creditor can choose to sue anyone who enters into a contract with one or more other people. The creditor can sue the group as a whole or choose to sue only one member of the contracting group for the entire amount. The contract terms must state this for it to apply.
A course in Tort Law is how most law students learn about joint and several liability. How it relates to the property they own is how most homeowners will understand it themselves. When a guest is injured on their property and subsequently sues for damages, homeowners can be held jointly and severally liable. Other times, the other homeowner can hold the first homeowner jointly and severally liable for property damage committed against property that both homeowners own.
A different way to think about it is how people can jointly apply for a credit card. The credit card company can attempt to obtain money from both card holders or, a more likely scenario, they can go after the one person who is in a better financial situation to pay the bill. Property owned jointly often ends up coming out the same way. The situation described above is where this most commonly comes into play. The lender can sue the owner in default, the owner who isn't, or both jointly, just like in the credit card scenario above.
Even though the term doesn't seem to relate to property at first sniff, this legal concept does not end at liability for a civil wrongdoing. Homeowners who co-own property need to take care so their guests remain safe on it. Avoid the pesky little legal term entirely by making sure anyone with whom you're considering co-owning property is financially stable to ensure the mortgage is paid on time each month.
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