When a property has just one owner, the sale of that real estate is typically straightforward. The buyer and seller need to agree on terms, which can sometimes complicate the process, but things usually proceed smoothly.
That said, some properties are owned jointly. When there are multiple owners of the same property, it can complicate the process even further. In the worst cases, it can lead to legal disputes and disagreements that may derail the sale entirely.
What percentage does each person own?
One reason things get complicated is if there are disputes over ownership percentages. For instance, people may be in a tenancy-in-common (TIC) arrangement, where ownership doesn’t have to be split equally. It’s important to define who owns what percentage of the property when dividing the proceeds.
It’s also worth noting that one person may be able to sell their share in a TIC arrangement, even if the other person doesn’t want to. However, both parties need to be clear on ownership percentages and what exactly is being sold.
Additionally, there are other arrangements, such as joint tenancy. In a joint tenancy setup, ownership is typically equal. This can make things very difficult if one person wants to sell and the other does not.
It also becomes more complex if one person passes away. That person’s heirs and beneficiaries may believe they should own a portion of the property to keep it in the family. However, joint tenancy usually means the surviving owner takes full ownership and would then have the right to sell the property if they wish.
Resolving legal disputes
If you are trying to buy or sell a property with multiple owners, you can see how tricky the situation can become. Be sure you understand all of your legal options.
