MBE Rules · Real Property

Co-Tenant Possession and Accounting

Co-tenant rights and ouster

The rule

Each co-tenant may possess the whole; a possessor owes no rent absent ouster, must share third-party rents and carrying-cost contributions, and gets credit for necessary repairs in partition but not improvements beyond value added.

In plain English

In a co-tenancy, each co-tenant has the right to use and possess the entire property, not just their share. They do not owe rent to each other unless one co-tenant has ousted the other, and they must share any income from the property as well as the costs of maintaining it. If a co-tenant makes necessary repairs, they can seek reimbursement when the property is divided, but they cannot claim credit for improvements that exceed the property's value increase.

Worked example

Alice and Bob are co-tenants of a rental property. Alice collects $1,000 in rent from a tenant and does not share it with Bob, while Bob pays $200 for necessary repairs. When they decide to partition the property, Alice must share the rent with Bob, and Bob can seek reimbursement for the repairs. Ultimately, they both share the rental income and Bob gets credit for his necessary repairs.

Memory hook

Co-tenants share everything, but no rent unless ousted!

The trap

Exams often confuse students by presenting scenarios where one co-tenant makes improvements and expects reimbursement, leading them to overlook the distinction between necessary repairs and value-enhancing improvements.

How examiners test it

Questions typically involve fact patterns where co-tenants disagree over rental income or expenses, testing the candidates' understanding of possession rights and accounting obligations.

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