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Forced Sale tenants in common

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MaraK View Drop Down
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  Quote MaraK Quote  Post ReplyReply Direct Link To This Post Topic: Forced Sale tenants in common
    Posted: 30/January/2010 at 15:57
Hi,

I own a 1/4 of a share of a property - tenants in common. One of the owners has decided she wants to sell the property. The other 3 of us dont want to sell - because if we sell now it will be at a significant loss. Can she force us to sell? Her lawyer has sent us a letter stating if we dont agree to sell they appoint a trustee to see & attempt to recover cost from us.

This is in NSW - any help would be greatly appreciated.

:)

MaraK View Drop Down
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  Quote MaraK Quote  Post ReplyReply Direct Link To This Post Posted: 30/January/2010 at 15:58
& sorry for my bad grammar & not proof reading. It should read appoint a trustee to sell.

jaazzz View Drop Down
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  Quote jaazzz Quote  Post ReplyReply Direct Link To This Post Posted: 30/January/2010 at 17:01


A co-owner (whether as a Joint Tenant or as a Tenant in Common) can force the sale of the property under the Conveyancing Act, even if the other co-owner(s) don’t wish a sale to occur.
   This is done by an application to the Supreme Court seeking the appointment of a trustee to sell the property.

You will probably need to negotiate an agreeable outcome with the party that wants to sell so that she doesn't force a sale.
The costs involved in a court application will be an incentive for her to negotiate.

Perhaps consider engaging an independent solicitor to help as a mediator if the dispute can't be resolved amongst yourselves.

MaraK View Drop Down
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  Quote MaraK Quote  Post ReplyReply Direct Link To This Post Posted: 30/January/2010 at 17:38
Thanks - will keep trying. We have tried - but she simply insists, & it's quite irrational. The other 3 of us have agreed that we want to sell - but that now isnt the right time - we want to review again in 6 months, but she isn't interested in negotiating. Do you know whether court/trustee will encourage mediation, or is it pretty much a process that just happens?
Mara

jaazzz View Drop Down
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  Quote jaazzz Quote  Post ReplyReply Direct Link To This Post Posted: 30/January/2010 at 17:55

I think ounce it reaches the court stage it is assumed mediation has failed ..... doesn't mean the action can't be stopped at the 11th hour if you do reach an agreement though.

   It may be 6 months before a court action can be finalized anyway, but if the relationship has soured to that extent she may be even less compromising.

Unless she is asking for a totally unrealistic amount to sell her interest in the property, may be worth all of you trying to buy her out even if it is a bit higher than what normally you would except to pay.

   Taking into account where the property is & the forecast increase in value of course.

MaraK View Drop Down
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  Quote MaraK Quote  Post ReplyReply Direct Link To This Post Posted: 30/January/2010 at 18:11
Thanks, I really appreciate your time.
Mara

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  Quote Headroom Quote  Post ReplyReply Direct Link To This Post Posted: 01/March/2010 at 11:25
What costs can they (ie, the party forcing the sale) recover and what do they need to do to be successful?

MartinO View Drop Down
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  Quote MartinO Quote  Post ReplyReply Direct Link To This Post Posted: 01/March/2010 at 14:19
Have you considered making an offer to the one who wants to sell and the three remaining owners buying her share from her, such that you will still be tenants in common with the three of you owning one third of the property each?
I am NOT a lawyer. Anything said is NOT legal advice.

Please post your legal questions in a forum rather than sending a PM. Thanks.

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