Beyond Bending Tell You How
Joint ownership of a property can be a great way to share the burden of ownership and expenses while enjoying the benefits of property ownership. However, when one party wants to sell and the other does not, it can create a complicated and stressful situation. In this blog post, we will discuss the various options available to parties in joint ownership when one party wants to sell and the other does not.
Before we get into the details, let’s first define what joint ownership of a property means. Joint ownership, also known as co-ownership, is a legal arrangement in which two or more individuals own a property together. There are two main types of joint ownership: joint tenancy and tenancy in common.
What is Joint Tenancy?
Joint tenancy is a form of joint ownership in which each co-owner has an equal share in the property. When one owner dies, their share automatically passes to the surviving owner(s) without going through probate. In order to create a joint tenancy, the co-owners must take specific steps to establish it, such as signing a joint tenancy agreement.
If one party wants to sell their share of the property in joint tenancy, they must get the consent of the other co-owner(s). If the other co-owner(s) do not agree to the sale, the party wanting to sell may have to go to court to force a sale.
What is Tenancy in Common?
Tenancy in common is another form of joint ownership in which each co-owner has a specific share in the property. Unlike joint tenancy, when one owner dies, their share does not automatically pass to the surviving owner(s). Instead, it passes to their heirs or beneficiaries according to their will or state law.
If one party wants to sell their share of the property in tenancy in common, they have the right to do so without the consent of the other co-owner(s). However, they may have difficulty finding a buyer who is willing to purchase a partial interest in the property.
Options for Selling Jointly Owned Property
1. Negotiate a Buyout
If one party wants to sell their share of the property and the other co-owner(s) want to keep the property, they may be able to negotiate a buyout. In a buyout, the party wanting to sell agrees to sell their share to the other co-owner(s) for a negotiated price.
It is important to have an appraisal done to determine the fair market value of the property before negotiating a buyout. This will ensure that both parties are getting a fair deal.
2. Partition Action
If the parties cannot agree on a buyout and the co-owner(s) who want to keep the property are unwilling to sell, the party wanting to sell may file a partition action. A partition action is a lawsuit in which the court orders the sale of the property and the proceeds are divided among the co-owners according to their ownership interest.
It is important to note that a partition action can be expensive and time-consuming. It is also possible that the property may not sell for its full market value, which could result in a loss for both parties.
3. Sell to a Third Party
If the co-owner(s) who want to keep the property are unwilling to buy out the party wanting to sell and a partition action is not feasible, the party wanting to sell may be able to sell their share of the property to a third party. However, this can be difficult as most buyers prefer to purchase the entire property rather than a partial interest.
It is important to consult with a real estate attorney before attempting to sell to a third party to ensure that all legal requirements are met.
Important Notes
“It is important to have a clear and legally binding agreement in place when entering into a joint ownership arrangement. This agreement should outline the rights and responsibilities of each co-owner, including how the property will be managed, how expenses will be divided, and what will happen if one party wants to sell.”
“If the joint ownership agreement does not address what will happen if one party wants to sell, the co-owners may need to go to court to resolve the issue.”
Conclusion
Joint ownership of a property can be a great way to share the burden of ownership and expenses while enjoying the benefits of property ownership. However, when one party wants to sell and the other does not, it can create a complicated and stressful situation. The options available to parties in joint ownership when one party wants to sell and the other does not include negotiating a buyout, filing a partition action, or selling to a third party. It is important to consult with a real estate attorney to ensure that all legal requirements are met.
People Also Ask
What happens if one owner wants to sell and the other doesn’t?
If one owner wants to sell and the other does not, the parties may be able to negotiate a buyout or the party wanting to sell may file a partition action. If the parties cannot agree on a solution, they may need to go to court to resolve the issue.
Can one owner force the sale of jointly owned property?
If one owner wants to sell and the other does not, the party wanting to sell may be able to file a partition action to force the sale of the property. However, this can be expensive and time-consuming.
What is a buyout in joint ownership?
A buyout in joint ownership is a negotiated agreement in which one co-owner agrees to sell their share of the property to the other co-owner(s) for a negotiated price.
