Property co-ownership dispute

[Aussieng]

Hi

I jointly own (tenants in common) an investment property with Co-Owner. Co-Owner and I are struggling to agree how best to manage the investment and have fallen out. In theory, we are trying to resolve it but Co-Owner is being seriously unreasonable about meeting times etc to discuss the situation and I'm starting to suspect a hidden agenda.

I am about to go on maternity leave and as a consequence am not currently in a position to be able to offer to buy Co-Owner out of the property (I will be in 9 - 12 months time and would love to do so). She could buy me out right now if she wanted (and indeed she does). Problem is a market valuation at the moment would not be great given market conditions but it is a goldmine of a property with a great rental return and I do not want to sell it at current market value which co-owner would (understandably) take as the starting point for any sales negotiation.

As joint tenants, I am aware that either of us can apply for a Court Order for sale. I don't think Co-Owner would do this to force a third party sale as Co-Owner would also not want to sell at current market rates but I'm worried that she could use a Court Order to force me to sell my share to her while I am not currently in a postion to be able to say that I would also like to purchase it outright from her.

Does anyone know whether Court Orders for sale can be used in this way (ie to force one Co-Owner to sell to another) and how long does it take to get such a Court Order ie would I have any hope of stalling this until next year if necessary when I would be in a stronger postion?

she could apply for a court order tomorrow if she wanted then ahearing would be held to discus trying to come to an agreement. if she could afford to buy you out and the current market value and you could not it is likely that the court would order this if she just wanted her money back a court would order the property to be sold at the best possible price in the current market conditions. sorry. best course of action if you cant buy her out and all the leagal fees as well dont forget! is to bide your time untill prices go up or you can buy her out no easy way with this one.

Thanks Kitty. Not so much a case of biding my time as dragging my feet, I think will be required - and I hate games like that. But hey ho - needs must etc. We've been doing a lot by email. Maybe when we finally do talk things will improve

The court CANNOT order her to sell the property to you or vice versa. If either of you apply for an order for sale under section 14 of the Trusts of Land and Appointments of Trustees Act 1996 and the court can order a sale. You would both be expected to co-operate with the sale but either of you could buy the property, or a third party on your behalf. If the house is marketed and a buyer is found who makes a reasonable offer but the other party refuses to agree a sale then the court can order the sale to the reasonable offerer.

The court has no power to force someone to buy a house!

diyfamilylaw

Thanks DFL. Point is she wants to buy the house and is in a position to do so. So the issue is whether the court could order me to sell to her and it sounds as if they could.

You could consider mediation from somewhere like Centre for Justice. Much cheaper than getting into a legal battle.

www.centreforjustice.org