QUESTION: I am a co-owner of a property together with a friend. For a number of years I have been trying to convince him that we should sell the property, but he keeps refusing.
I just don’t see the value of keeping the property anymore. Is there any way I can force him to sell?
ANSWER:A distinctive feature of co-ownership in property when compared to all other forms of co-ownership, such as partnerships or associations, is the fact that a co-owner may freely sell his share of the property without reference to the other co-owner.
You can however, only exercise this right if no prior agreement was concluded between you and your co-owner in which you both agreed on how the disposal of your share in the property should be handled.
Choosing to exercise this right to sell your share could strain the relationship, however, as your co-owner may feel he is being forced into a co-ownership with someone he does not know or approve of. The competing interests here are that you cannot force your co-owner to sell his share of the property if he does not want to and neither can your co-owner force you to remain a co-owner against your will.
An inexpensive and less time-consuming option would be if you and your friend could agree that he buys your share at a market-related price.
The important things here is that you and your friend try your utmost to resolve your dispute amicably before you decide to litigate, as our courts will ask you both to present the steps you have taken to resolve the issue.
If the above is not possible, our law allows you the right to approach the court for partition of the property.
Partition of the property essentially entails that the property itself will be split, with the court dividing it physically among the co-owners in accordance with the value of the property and each co-owner’s share in it.
If actual partition of the property is impracticable, the court will have the freedom to decide on whatever other solution it sees fit, such as ordering that the property be sold by public auction and the proceeds thereof be shared between the co-owners according to their respective shares.
The court can also, for example, order your co-owner to buy you out.
The court will therefore, with reference to the circumstances, make an order that is just and equitable for both you and your friend.
What is clear is that should you wish to enter into a co-ownership of property arrangement, first obtain legal assistance to discuss available structures and entities that will best suit your needs and have an agreement drafted that clearly spells out aspects such as sale of the property and both parties’ respective rights and duties.
This can help avoid many problems.
- Please note there will be no Legal Eagle column next Friday, which is a public holiday.
Terence Mathie is an attorney with Drake Flemmer & Orsmond Attorneys. Contact him on (043)722-4210.
LEGAL EAGLE: Co-ownership: is it for life, or can I get out?
I just don’t see the value of keeping the property anymore. Is there any way I can force him to sell?
ANSWER:A distinctive feature of co-ownership in property when compared to all other forms of co-ownership, such as partnerships or associations, is the fact that a co-owner may freely sell his share of the property without reference to the other co-owner.
You can however, only exercise this right if no prior agreement was concluded between you and your co-owner in which you both agreed on how the disposal of your share in the property should be handled.
Choosing to exercise this right to sell your share could strain the relationship, however, as your co-owner may feel he is being forced into a co-ownership with someone he does not know or approve of. The competing interests here are that you cannot force your co-owner to sell his share of the property if he does not want to and neither can your co-owner force you to remain a co-owner against your will.
An inexpensive and less time-consuming option would be if you and your friend could agree that he buys your share at a market-related price.
The important things here is that you and your friend try your utmost to resolve your dispute amicably before you decide to litigate, as our courts will ask you both to present the steps you have taken to resolve the issue.
If the above is not possible, our law allows you the right to approach the court for partition of the property.
Partition of the property essentially entails that the property itself will be split, with the court dividing it physically among the co-owners in accordance with the value of the property and each co-owner’s share in it.
If actual partition of the property is impracticable, the court will have the freedom to decide on whatever other solution it sees fit, such as ordering that the property be sold by public auction and the proceeds thereof be shared between the co-owners according to their respective shares.
The court can also, for example, order your co-owner to buy you out.
The court will therefore, with reference to the circumstances, make an order that is just and equitable for both you and your friend.
What is clear is that should you wish to enter into a co-ownership of property arrangement, first obtain legal assistance to discuss available structures and entities that will best suit your needs and have an agreement drafted that clearly spells out aspects such as sale of the property and both parties’ respective rights and duties.
This can help avoid many problems.
Terence Mathie is an attorney with Drake Flemmer & Orsmond Attorneys. Contact him on (043)722-4210.
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