People who want to increase their buying power in the real estate market may decide to participate in joint ownership in a property. In some cases, people find themselves in a joint ownership situation because they inherit property with their siblings or other relatives.
Those who share an interest in real property have to work together to maintain it and ensure they pay all necessary costs, including property taxes. Owners may find themselves disagreeing about maintenance obligations, shared expenses or sale opportunities.
They may then need to take steps to terminate joint ownership. The three steps below can help people who jointly own real estate end that arrangement.
1. Gather documentation
From an appraisal report estimating the fair market value of the property to records of uneven contributions and investments, property owners generally need documentation to have a calm and effective conversation with co-owners. Adequate evidence of unfair arrangements and the current value of the property can strengthen a co-owner’s position during negotiations.
2. Seek an amicable resolution
Identifying a potential price point and terms for a transaction and initial discussions can be helpful. Co-owners may require days or weeks to evaluate their options and determine if they can voluntarily settle the matter.
3. Pursue a partition action
Partition actions are judicial proceedings in which the courts officially separate ownership. They may require a buyout, split a parcel or force the sale of the property. A partition action can be the last step in the lengthy process of separating ownership of real estate.
Consulting with a real estate attorney about joint ownership disputes can be beneficial for co-owners. People do not need to remain trapped by joint ownership when the arrangement is no longer sustainable.