It is not uncommon for family members, friends or business partners to jointly own commercial or residential real estate. With soaring real estate values and Covid-19 allowing so many of us to work remotely, we’ve seen a surge in the number of partners (romantic and platonic) who have made the choice to work remotely. jointly purchase real estate, so they can have the space to work remotely.
With property in high demand and interest rates at their lowest in years, many have not taken the time to ask themselves the question: “what if I can’t stand living with this no one ?
Most people find themselves in a situation where they have purchased property with a long-time partner or friend without a prior shared ownership agreement that clearly spells out the terms of ownership. You may have been so busy writing the most attractive offer to purchase and admiring quartz countertops that you didn’t have time to think about how you would handle ownership disputes or buyouts. in case your partnership relationship breaks down.
In situations where you are unable to resolve shared ownership of real estate out of court, there are legal remedies available to help resolve ownership issues. A “partition in kind” occurs when real estate is physically divided between owners. These types of partitions tend to occur when the property in dispute is large enough to be practically divided. A partition works best when there is enough land to evenly or reasonably divide the property into two similar or reasonably similar parts.
However, an in-kind partition is not reasonably practical when the property in question is a townhouse or single family home with limited land. In such situations, you may be faced with a difficult decision as to whether a buyout of the other owner’s interest is possible or whether a compulsory private sale through an appointed arbitrator is best. way to end co-ownership and recoup your investment by capitalizing on current market trends.