Forced Sale Of Jointly Owned Property: Calgary Real Estate Lawyers
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Forced Sale Of Jointly Owned Property: Calgary Real Estate LawyersJeff Kahane2021-01-23T15:34:20+00:00
Ending Shared Property Ownership In Alberta
Forced Sale Of Jointly Owned Property Calgary Real Estate Lawyers
When two or more parties co-own a property, one party may wish to sell the property. Often this applies to residential properties, however it applies to most real estate. If the other owner(s) refuse to agree to the sale, a party may apply to the courts for the forced sale of jointly owned property. Part 3 of the Law Of Property Act governs the Partition and Sale of land. Partition and sale for the forced sale of jointly owned property has existed as a statute remedy since 1539 under the Partition Act in the UK. Some jurisdictions refer to this act as a Partition and Sale Act or Partition of Property Act. The real estate lawyers, family law lawyers and litigation lawyers assist clients when facing a situation where one owner wishes to sell.
Reasons Leading To Forced Sale Of Jointly Owned Property
While many factors play into why people want to sell a property or end a co-ownership situation, several reasons often set the stage. Important to note, no legal obligation exists for an individual wishing for a partition and sale to state why they wish to do so. The most common reasons include, for example, the following:
Divorce, Matrimonial Separation, Common Law Separation
The family home is often the single biggest asset a couple owns. If a relationship ends, no matter that relationships legal status, the parties need to sell the home in order to divide their shared matrimonial assets. Sometimes, one party buys out the other party’s interest, but that no always exists as a financial reality. If one party to the relationship refuses to sell the home, or makes selling the home impossible by frustrating showings or agreeing to a fair sale price, the party wishing to sell the home may make an application for the forced sale of jointly owned property.
Property Left Jointly In An Inheritance
If someone’s will leaves real estate to more than one beneficiary jointly, it may lead to problems. Sometimes, one beneficiary wants to sell the real estate while other(s) wish to keep it. At times the reason for keeping the property is sentimental. Other times, one beneficiary lives in the home and prefers not to move. However, sometimes they lack the finances to buy out the property from the estate or other beneficiaries. In these instances, once or more beneficiaries may look for a forced sale of jointly owned property as a remedy. The Act allows the courts flexibility as to its rulings. Our estate litigation lawyers help in these situations.
End Of Roommate Relationship
At times, people buy a home together as roommates. No romantic relationship exists between the parties. Sometimes, one party wishes to move to a new home, or in with a loved one, or just wishes to end the roommate situation. If the other party fails to agree to a sale of the property. The party wanting to end the living situation may apply for petition and sale of the property.
Termination of A Business Venture Or Agreement
This often occurs when individuals and / or businesses combine assets in order to purchase a property together for investment purposes. One party may wish to realize the gain in the asset value, wish to invest elsewhere, look for better returns or just wants to end the business venture with the other party. The forced sale of jointly owned property in this situation allows a party to end that relationship.
What Happens To The Money From The Forced Sale Of Jointly Owned Property
Most important to most people is the after part of a sale. While in some instances, no net proceeds remain for the parties dues to a lack of equity in the home, however most often it involves money. After completing the forced sale of jointly owned property, the court may rule to divide the net proceeds equally or in any equitable way. Net proceeds means, the amount left over after paying off the mortgage or debt on title, real estate agent fees, legal fees, etc. In general, the court looks at several factors. For example, these factors include:
If only one party lived in the home;
Which party paid for ongoing expenses;
Situations where a party caused damage to the property;
If a party increased the value of the property in any way; and lastly
The distribution of percentages of rents paid to the co-owners.
Defence to The Partition And Sale
The courts are reluctant to force people to co-own property. However, the courts look at equitable solutions where possible. For instance, situations where the partition and sale causes undue hardship and other possibilities exist with respect to ending the joint ownership. For example, if the party wishing to keep the property has financial means to buy out the other owner(s). In some instances, the application for the forced sale of jointly owned property is simply a mean spirited, vexatious move by one party.
Calgary Lawyers For The Forced Sale Of Jointly Owned Property
Kahane Law Office in Calgary is available to help. We act for people looking for a forced sale of jointly owned property. In addition, we act for those receiving notice of such orders. Our family law, civil litigation and real estate teams act in unison to provide exceptional service to our clients at a reasonable cost. For help, feel free to connect anytime. Call us at 403-225-8810 or email us directly here.