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Releasing funds from a sold property - how is it paid if there are 3 people

15 replies

3rdbump · 06/07/2018 09:36

If you where to sell a property and it was jointly owned in 3 names would the solicitor put the funds in 3 separate accounts as standard? also if someone thought they may be entitles to 50% and the other 2 people 25% would the solicitor need to confirm this with all 3 owners before releasing any funds?
In other words would all 3 owners have to be in agreement to which account the funds get paid into and how the money is split?
Thanks!

OP posts:
BreakfastAtSquiffanys · 06/07/2018 09:39

If there is any dispute, separate accounts.
When we wound up my father's estate, the solicitor sent 3 differing amounts to each of us three children, reflecting money that he had lent to us before he died.

BreakfastAtSquiffanys · 06/07/2018 09:42

One person can't arbitrarily decide they get 50%.
There needs to be a paper trail explaining why the split is not equal.
In my case, there was a paper trail but we were all in agreement anyway about the unequal split of proceeds

NorthernSpirit · 06/07/2018 09:44

When the property was purchased a deed of trust would of be set up agreeing the % ownership split.

The monies would be paid into the 3 respective accounts.

3rdbump · 06/07/2018 09:47

Thanks so basically one person can not go into the solicitors and say they want to split it this way or that way - all would be in agreement?
Would the solicitor automatically split 3 ways anyway or will they ask how we want it split?
Sorry for all questions, a family member is kicking off over the funds of a sale as there name is on it a well as mine and my partners name (3 separate names, me and my partner are not married) he wants 50% himself and the other 50% go to me and my partner. He says he is calling the solicitors today to ask about the money being transferred into 2 accounts instead of 3.

OP posts:
SassitudeandSparkle · 06/07/2018 09:48

If this is due to a death, the money will be paid to the executor initially (which could well be the solicitor) and they would distribute it to the beneficiaries.

If not a death and it is a property sale - what were the arrangement when the property was purchased, is it tenants in common because that is a set share of the property?

3rdbump · 06/07/2018 09:55

No death, it is land we have sold - my partner ran a business on it for 10 years and we had a small mortgage on it and me and my partner have paid all the repayments back. We (meaning me and my partner) originally paid for the wood using inheritance money (from my partners grandmother - his mums side oof the family) and money from our last house sale. I don't know why my partner put his fathers name on it, knew it was a bad idea, he has had nothing to do with the land or business for years now he's kicking off saying he wants 50% its still going through with the solicitors but we are hoping to complete next week. We sold it so we can start a fresh with a new business idea but his father has already handed in his work notice as intends to live off his so called 50% share :(

OP posts:
LIZS · 06/07/2018 09:57

Depends how it was registered and if there are any specific legal ownership agreements.

SassitudeandSparkle · 06/07/2018 10:01

What do the Land Registry documents say?

MaisyPops · 06/07/2018 10:03

3 names would be 3 ways I would have thought.

My question is why on earth did your DP put his dad's name on deeds when the dad hasn't paid towards it? I can't see any logic other than 'here we'll buy 100% of the land but will give you 1/3 when we sell'

Singlenotsingle · 06/07/2018 10:05

Hmmm he might want to start applying for jobs again. The sold won't give him 50% just on his say so

3rdbump · 06/07/2018 10:12

Maisypops - because he's a bloody idiot

Declaration of trust - would of this been something we would have signed? i cannot remember if we signed one or not.
Land registery has all our 3 names on it. I hope it just gets split 3 ways automatically but if it does have a declaration of trust will they automatically use this document?

OP posts:
Ariela · 06/07/2018 10:24

What do the original purchase documents say as to how the land was held between you?

Singlenotsingle · 06/07/2018 10:25

Yes of course they will. That was your expressed intention at the time (whatever it said).

BreakfastAtSquiffanys · 06/07/2018 14:48

If there is nothing in writing to state otherwise, it should (legally) split otherwise.
Morally (which counts for nothing) it should be split 49% you, same to partner, and 2% to his father!
I can see no justifiction for his father getting 50% of a property that is "owned" by 3 people. Especially when he did not contribute to its purchase

No solicitor will simply pay out 50% on father's say so.
If they do, sue the pants off them

Minniemountain · 06/07/2018 16:04

Look at section B of your Land Registry title document. Is there a paragraph which starts "No disposition by a sole proprietor of the registered estate"?
If so, you have a declaration of trust which would set out shares. You'll need to find the document.
If not, you will own in equal shares.

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