State of Georgia, my Lady friend has a deed owning 50% of a property. A divorce couple owns 25% each. One owner refuse to negotiate in good faith (ie I’ll buy it for a $1). My friend simply wants to sell her 50% so does the other divorced person. How can she do this without hefty litigation cost? The property is worth $400,000
It sounds like the 3 are tenants in common (or whatever the term your state uses), which means in this case that they each the percentage share of the property that you indicate. That gives them each the right to sell that share of the property to a third party. I just don’t see a stranger wanting to buy any share, except for very low dollars.
The 75% owners can buyout the 25% recalcitrant owner. In this case, it seems that will cost more than 25% of value. The 3 can also agree to sell the property and give the 25% owner more than 25% of the proceeds. The only other remedy is to offer to sell the 75% owner that share for a stated amount. If the parties cannot agree, then that the only other alternative is for the 75% owners to file suit seeking a court order to sell the property and split the proceeds according to ownership share.
I am presuming none of the 3 are currently living in the property, which would change dynamic greatly, and involve whether there a lease, what and how are the costs being shared, etc.
One of the 25% owners is living in the property. No lease, no intention of moving and remains there via intimidation. Ex wife said he burn the property before giving it up. My friend is in New York, her deceased husband had dealings with this person. It can’t get better than that.
She needs a lawyer.
After seeing your response, I agree with ratbert. Best to get someone familiar with NY property law, specifically ownership, deed and tenant problems. Most states have a bar assn with a property law section, so I’d start there. The residency greatly complicates the issue, so the longer the situation brews the worse it is going to get.
She got a lawyer, bills are adding up with no finalization in the near future. Arbitration can drag on and litigation can also be lengthy. Good news, no one can sell it, both are in their 70’s, maybe when he passes, his heirs will be more reasonable.
Sounds like the only answer is to have the court force the sale and divide the proceeds 50/25/25.
Let the tenant know you are going to do this and maybe they will finally agree to move out rather than fight it. If not then you will have to use the court system.
Waiting for someone in their 70s to pass isn’t a good strategy. They could easily live another 20 years.
Just wondering who pays taxes and insures this property?
Then she needs a good discussion with the lawyer. She needs to describe her expected outcome and the lawyer should inform of ways to get there. Then she needs to decide on the action. She is paying the bills and is in charge, not the lawyer, and she needs to start acting like it. If she is not willing to do what needs to be done, then she should drop it and live with the consequences.
It was the deceased spouse of my friend and the 25% owner out of the kindness of his heart took them on.
I once bought a house with a friend and her husband. The wife was a lawyer!
We decided that we would buy equal shares (1/3 each). She and her husband were tennants in comman and I was tennant by the entirety. We had a written agreement that if any party wanted to sell, a real estate agent would determine the fair market value of the house. If anyone disagreed with the price, we would get another valuation.
If there were issues in the house, decisions to make, we would vote. The one time we had a vote, the husbans agreed with me.
They remain good friends with me even something like 40 years later. That is because we thought honestly about the ramifications of co-purchasing a property.
Not saying I recommend this…but your Lady Friend could just move into the property. Since her name is on the deed now I believe she would be entitled to occupancy.
That would probably change the dynamic and cause someone to rethink their position.
That would be a hoot! Probably dangerous and of distances since she’s in NY. She simply needs to decide how to fight it, court or arbitration. At least it can’t be sold without her