Reitmeier v. Kalinoski

United States District Court · Property

Propertytenancy in commonquiet titlepartitioncontributionousterparol evidencetenants in common

Facts

While engaged to be married, plaintiff and defendant bought residential property in Ewing Township, New Jersey, taking title by deed in both names, which on its face made them tenants in common. Plaintiff paid the entire down payment, closing costs, and nearly all mortgage payments, while defendant contributed to certain fixtures, repairs, and possibly part of the first mortgage payment; defendant never lived on the property, but plaintiff did after the engagement ended. On the same day as the purchase, the parties signed an agreement made in contemplation of marriage that set out unequal ownership formulas for the property's net value. After the engagement was broken, they disputed both the validity of that agreement and their respective ownership interests.

Issue

Whether the August 10, 1984 agreement was enforceable, whether defendant had any ownership interest despite plaintiff's far greater financial contributions, and how the property should be allocated between the parties. The court also had to decide whether defendant was entitled to compensation for plaintiff's sole occupancy and what contribution offsets should apply in partition.

Rule

When a deed to multiple grantees does not specify their proportional shares, New Jersey law presumes equal ownership, but that presumption is rebuttable and extrinsic evidence may be admitted to show the parties' true intent. An agreement made in contemplation of marriage is void for want of consideration if the contemplated marriage never occurs, yet it may still be considered as evidence of intent concerning ambiguous ownership shares. In an equitable partition action, a court may settle related contribution claims and, where justice requires, award the entire property to one cotenant subject to compensating the other and applying offsets for mortgage, closing, insurance, and similar necessary expenses. A cotenant out of possession is not entitled to an accounting for use and occupation without actual or constructive ouster under the circumstances described.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Nina Patel and Owen Mercer, while engaged, bought a duplex in Columbus, Ohio, taking title by deed in both names. The deed listed both grantees but said nothing about percentages. The same day, they signed a written memorandum stating that Nina would hold 70% and Owen 30%, but the wedding never occurred.

In later litigation over ownership shares, which is the best result under the majority rule of this case?

Explanation. The majority held that a deed naming multiple grantees without specified shares creates only a rebuttable presumption of equal ownership. Because the deed is ambiguous as to proportions, extrinsic evidence is admissible to show the parties' true intent. Even though an agreement made in contemplation of marriage is void when the marriage never occurs, it may still be considered as evidence of intended ownership shares.