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Co-owner refuses to sell property.

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izenmike

Junior Member
What is the name of your state? Florida

I currently am a 50/50 co-owner of a rental property with my sister. I live in FL, my sister lives in NY. I have been expressing my desire (and need) to sell the property for about two years. She currently refuses to sell. Even in today's current market we both would make a sizable profit (there are no liens on the property.) What legal recourses are available to me (she states that she is unable to buy my half out at fair market value.) If I resort to refusing to extend the lease for the current tentants and any subsequent tenents, what must I do the cover all my bases and ensure the she does not attempt to lease it on her own? Any information would be helpful.
 


divgradcurl

Senior Member
izenmike said:
What is the name of your state? Florida

I currently am a 50/50 co-owner of a rental property with my sister. I live in FL, my sister lives in NY. I have been expressing my desire (and need) to sell the property for about two years. She currently refuses to sell. Even in today's current market we both would make a sizable profit (there are no liens on the property.) What legal recourses are available to me (she states that she is unable to buy my half out at fair market value.) If I resort to refusing to extend the lease for the current tentants and any subsequent tenents, what must I do the cover all my bases and ensure the she does not attempt to lease it on her own? Any information would be helpful.
She's a co-owner -- you can't keep her from leasing the property, she's entitled to lease it if you won't. If you guys can't work something out, then you will need to ask the court to partition the property for you. It's not cheap, you'll almost certainly need a lawyer, and it might take a couple of years to complete, so it should be a last resort.
 

izenmike

Junior Member
The right to leasse and the right not to lease...

For divgradcurl,

If she has the right to lease it, do I not have the right to not lease it? I guess the question is, does it require both owner's signatures to complete the lease agreement?
 

divgradcurl

Senior Member
izenmike said:
For divgradcurl,

If she has the right to lease it, do I not have the right to not lease it? I guess the question is, does it require both owner's signatures to complete the lease agreement?
Not really. If you were occupying the house, you could demand that your sister not lease the house -- but then you might need to pay your sister rent! But neither party has the right to commit "waste." You can't just let the house sit and rot away so that your sister will sell -- unless you both agree, of course.

Both parties have the right to full use of the house. If either party denies the other party their full use of the house, then they have "ousted" the other party, and are obligated to pay rent to the "ousted" owner. Either party can lease the house, but they must pay the other party at least 1/2 of the fair market rental value of the house, because a lease by one party is essentially an "ouster" of the other owner.

I'm not saying you are not in a tough position, but there really isn't any self-help available that will put you where you want to be. If you lock your sister out, or lock out tenants, or keep her from renting the place, etc., you could find yourself liable to your sister for damages. Your best bet is to keep trying to negotiate a sale with your sister, and if that fails, either threaten to or actually file a partition suit.
 

xylene

Senior Member
izenmike said:
(she states that she is unable to buy my half out at fair market value.)
Talk with a lawyer to get a sense of what a partition suit will cost.

Offer she buy you out at Fair Market Value - that amount.

AND / OR

Point out to your sister that is she buys you out she will no longer need to pay you the rent monies, which will pay off the finance amount to buy your share.

Also point out how much money she will lose when you file partition.
 

izenmike

Junior Member
Thanks!

Thanks for the reply! I am seeking the cost of a Partion Suit now. The other suggestions have already been presented to my sister with no avail. It seems the Partion Suit is the next course of action.
 

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