Tenancy in common

Discussion in 'Homesteading Questions' started by countrygrrrl, Aug 1, 2004.

  1. countrygrrrl

    countrygrrrl PITA

    Messages:
    1,265
    Joined:
    Aug 4, 2003
    Location:
    Zone Unknown
    I'm part owner of a house and, due to a number of circumstances, have decided to sell my share.

    I've been poring over everything for several months now and can find no indication that I am required by law NOT to sell without the other owner's consent or to only sell to someone upon their approval. And unfortunately, due to the circumstances of what's going on, I am likely going to have to sell w/o the approval of the other owner and am anticipating the likely buyer will be a bank or real estate type venture.

    I'm curious if others have done this --- that is, sold their share in a house to *strangers*. If so, let me know your experiences and advice.
     
  2. JulieNC

    JulieNC Well-Known Member

    Messages:
    441
    Joined:
    May 29, 2002
    Different states have different laws, so I don't know what the rule is in your area.

    As a practical matter, though, it rarely happens. There are too many things that co-owners of property need to work together on--payment of real estate taxes, handling of rents, etc.

    I did have a client once ask about buying into that situation, and I advised him to run like the wind. I'd be surprised if you found a buyer. Maybe you will, though, if you offer a substantial discount.
     

  3. countrygrrrl

    countrygrrrl PITA

    Messages:
    1,265
    Joined:
    Aug 4, 2003
    Location:
    Zone Unknown
    Thanks. That's my concern, as well, but something needs to happen soon.
     
  4. JulieNC

    JulieNC Well-Known Member

    Messages:
    441
    Joined:
    May 29, 2002
    As yucky as it sounds, you may want to check into a partition suit. When people own property as co-tenants, they each own an undivided interest in the property. So, for example, if two siblings owned a house as tenants in common, they'd each have a right to live in the house, which could be problematic (to say the least).

    In a partition suit, the judge will divide the property. If the land itself is capable of division, then the judge will do that--5 acres to A and 5 acres to B, per a survey. If the property isn't easily divisible and the parties can't agree, then the judge will typically order the property sold and the proceeds divided.

    If you sell to a third party without the consent of the other co-owner(s), the likely discount will be AT LEAST the estimated cost of a partition suit. Unless the property has some real potential, my guess is that most folks will steer clear for obvious reasons. I mean, if you're selling without the consent of the other co-owner, they'll figure there's something wrong with him (which is most likely the case).

    Good luck.
     
  5. countrygrrrl

    countrygrrrl PITA

    Messages:
    1,265
    Joined:
    Aug 4, 2003
    Location:
    Zone Unknown
    I read about the partition suits and I REALLY don't want to go there. But I will if I have to. There's also a contract involved which I REALLY don't want to enforce --- but I will if I have to.

    My assumption was, my best bet would be banks or real estate companies. It's in a very nice part of town, completely paid for and has the potential of being a very, very good investment --- for someone with the cash to do some serious upgrading.

    However ...

    Yup. :rolleyes:

    I think I'll start forcing the contract and see if I can force sale of the entire property on my own. While keeping this idea in the back of my mind, just in case.

    :rolleyes:
     
  6. daileyjoy

    daileyjoy Well-Known Member

    Messages:
    350
    Joined:
    May 2, 2003
    is it possible to sell your 1/2 to your partner, they might want to buy it just to be on the safe side.
     
  7. countrygrrrl

    countrygrrrl PITA

    Messages:
    1,265
    Joined:
    Aug 4, 2003
    Location:
    Zone Unknown
    That was the original plan. I wouldn't have gone into it in the first place otherwise. Needless to say, it hasn't happened. Sooooooo ... at this point, I just want out. Although there's a lot of flailing about trying to keep me from getting out.

    :no:
     
  8. daileyjoy

    daileyjoy Well-Known Member

    Messages:
    350
    Joined:
    May 2, 2003
    :no: I'm sorry, I hope you find a way.
     
  9. caroline00

    caroline00 Well-Known Member

    Messages:
    4,473
    Joined:
    Nov 10, 2002
    so are you safe?

    I guess that is the important thing. Money can be lost and earned again and again and again...
     
  10. countrygrrrl

    countrygrrrl PITA

    Messages:
    1,265
    Joined:
    Aug 4, 2003
    Location:
    Zone Unknown
    Oh yes!

    I'm safe. In fact, in preparation for lowering the boom, I just did a rough estimate of everything I've spent for the past year. And, sure, I'd REALLY like a new barn ... put up by the guys down the road who actually know how to put up a barn! :haha: And a back porch. But those things will just have to take longer to happen.

    But I can pay my bills. And I've managed to cover the most important expenses the last year. So I'll be fine. :)

    It's a huge disappointment, of course. But that's okay. It will work out. I just hate doing stuff like this. :no:
     
  11. JulieNC

    JulieNC Well-Known Member

    Messages:
    441
    Joined:
    May 29, 2002
    If you have a contract regarding sale of the property, sue to enforce it. Partition is only available if you have no other rememdy.

    I really hate to say this, but see a lawyer. I wouldn't waste your time and energy trying to sell property that will be difficult at best to unload under these circumstances.

    Let us know what happens.
     
  12. rambler

    rambler Well-Known Member Supporter

    Messages:
    8,263
    Joined:
    Jan 20, 2004
    Location:
    MN

    Yes, if this property has any value worthwhile, I'm thinking you will need a lawyer sooner or later.

    No one is going to buy 1/2 a property with those kinds of strings, not a bank either.

    --->Paul