Can a co-tenant encumber an inherited New York home without your consent?

Short answer: Under New York law a co-tenant can encumber only the interest they own, but they generally cannot validly bind another co-tenant’s separate ownership without that co-tenant’s signature. A lender that relies only on one co-tenant’s signature typically gets a lien effective against that co-tenant’s undivided share, not a clean lien on the entire property. Still, practical consequences can include a foreclosure or partition sale that affects everyone’s rights. You have legal remedies under New York law.

Detailed Answer — How this works in New York

1. Types of co-ownership and what each owner can do

Most inherited property among multiple heirs becomes ownership as tenants in common unless the deed or will says otherwise. Each tenant in common owns an undivided fractional share. In New York, a co-tenant may mortgage, refinance, or otherwise encumber the co-tenant’s own share. They cannot unilaterally encumber another co-tenant’s separate share unless that other co-tenant signs the mortgage or deed, or title is otherwise transferred to them.

2. What the lender gets if only one co-tenant signs

If only one co-tenant signs the mortgage or refinance documents, the lender generally receives a valid lien only against the signing co-tenant’s undivided interest. That lien does not automatically become a valid lien on the other co-tenant’s separate interest. In practice, lenders usually require all owners on title to sign to get a full lien on the whole property.

3. Foreclosure and partition — how a lender might still affect the whole property

Even if the lender’s mortgage covers only the signing co-tenant’s share, if the borrower defaults the lender may foreclose on that mortgaged interest. Foreclosure against one co-tenant’s interest can lead to sale of the property (or that interest) and distribution of proceeds. Separately, a co-tenant (including the lender as assignee of the signing co-tenant’s interest) can seek a partition sale under New York law. The statutory partition remedy allows a court to divide physical property or order sale and distribute the proceeds. For the partition statute, see RPAPL §901 and following: N.Y. RPAPL §901.

4. Fraud, forged signatures, or false statements to the lender

If a co-tenant forged your signature or falsely represented that they had authority to sign for you, those actions are wrongful and may be voidable. You can challenge the transaction in court, seek cancellation of a forged instrument, pursue quiet title actions, and raise criminal or civil fraud claims. Title companies and lenders may have different remedies, but courts will not let a forged or fraudulently obtained mortgage stand simply because a third party relied on it.

5. How insurance and title work

If the property has title insurance, the policy terms and the insurer’s investigation matter. A lender will often require a lender’s title policy and will demand signatures from everyone who appears on title. If a co-tenant tricks a title company or conceals a co-owner, the title insurer may have coverage obligations depending on the policy and the facts.

6. Common practical outcomes

• If both co-owners signed the mortgage or refinance: both are directly liable on the loan and the lender has a strong lien on the property.
• If only one co-owner signed in good faith: the lender generally has a lien only on that co-owner’s share; non-signing co-owners are not personally liable on the debt but can still be affected by foreclosure or partition.
• If the signature was forged or the co-tenant lied about authority: you can seek to void the transaction and recover damages; you may also involve criminal authorities for forgery or fraud.

Remedies and steps you can take in New York

If you discover a co-tenant refinanced or took a loan without your approval, consider these actions promptly:

1. Obtain a full copy of the recorded documents from the county clerk’s office (deed, mortgage, and any assignments).
2. Confirm whether your name appears on the loan documents and whether you actually signed. A title search or abstract will show recorded liens.
3. If you did not sign, put the lender and title company on notice in writing that you dispute the authority and record an affidavit of non-consent if appropriate.
4. Consult a New York real property attorney promptly to evaluate claims (quiet title, cancellation of mortgage, injunction, or fraud). You may need immediate relief to stop a lender’s sale or a co-tenant’s transfer.
5. Consider filing a partition action under RPAPL if you want to force a sale and divide proceeds. See RPAPL §901 et seq.: N.Y. RPAPL §901.
6. If you suspect forgery or criminal behavior, preserve evidence and consider a police report or referral to the district attorney.

Typical timeline and costs to resolve

Litigation (quiet title, cancellation, or partition) can take months to years depending on complexity. Costs vary widely: attorney fees, court costs, title searches, and possibly expert reports. Quick steps (title search, written notices) usually cost less and may resolve the issue without litigation.

Example (hypothetical)

Two siblings inherit a house as tenants in common. One sibling signs a refinance and records a mortgage without the other sibling’s signature. The lender obtains a lien on the signing sibling’s share. If the signer defaults, the lender may foreclose on that share and seek sale or seek partition. The non-signing sibling can sue to cancel the mortgage if it is shown the lender did not obtain valid consent from all owners or if there was fraud.

Helpful Hints

• Check the county land records yourself or through a title company — look for recorded mortgages or assignments.
• Keep copies of any estate documents (will, letters testamentary, deed) showing how title was transferred after inheritance.
• Do not ignore notices from a lender or a foreclosure — missing deadlines can reduce your remedies.
• If you plan to keep the property, consider negotiating with the co-tenant or lender to restructure the loan or buy out the other owner’s share.
• Get legal help early. Real property disputes involve strict procedures and deadlines in New York courts.
• If you find a forged signature, preserve original documents, note where and when you saw them, and contact an attorney immediately.

Key statute to review: Partition actions under New York law, RPAPL §901 et seq.: https://www.nysenate.gov/legislation/laws/RPA/901.

Disclaimer: This article explains general principles of New York property law and is for educational purposes only. It is not legal advice. For advice about your specific situation, consult a licensed New York attorney promptly.