Selling a multiple occupancy property in NSW

Discussion in 'The Buying & Selling Process' started by Leo75, 22nd Jan, 2018.

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  1. Leo75

    Leo75 Member

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    Hi all,

    Has anyone had any experience selling a multiple occupancy property in NSW?

    My mother in-law is looking to sell. The MO is set up in shares. The property is 140 acres with 140 shares. She owns 40 acres (40 shares). There are 4 other parties that own the remaining 100 shares. My in-law's land is fences and has a house on it and it is understood by the other owners that she owns that portion of the property.

    The council has no provision to allow converting the multiple occupancy to community title.

    Legally and in a sales point of view what needs to be done to put her house on the market?

    Thanks,
    Leo
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Do you mean it is owned by a company? Or Tenants in Common?
     
  3. Leo75

    Leo75 Member

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    Hi Terry, it's Tenants in Common.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    How many titles?

    Normally the legal owners can sell the property, but there may be some restrictions if there is some sort of agreement between the owners.

    A property doesn't have 'shares' but the tenants in common owners may own certain percentages of the property. There may also be a partition agreement which might say X owns a specific portion of the land.
     
  5. Leo75

    Leo75 Member

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    There is one title with 5 shareholders on the title. There is no agreements at all in place.

    Thanks,
    Leo
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Are all in agreement?
     
  7. Leo75

    Leo75 Member

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    Yes they have no problem with her selling, I see more of a problem finding a buyer because there are so many unknowns for the buyer. It's either sell to another share holder, but with little leverage to negotiate a decent price, or put it on the market and see what happens there. I can see it being very difficult to sell on the open market. It would be tricky for the agent to explain what is actually for sale.
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    She is only selling her interest and that alone will restrict the price that she will achieve. It is not a controlling interest ie >50% & can be out voted by the others.

    There's nothing defined so anyone can live/use whatever part of the land which makes it very unattractive to purchasers.
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It will be tricky.
    What if finance is needed?
    What if the new potential purchaser is not liked by the other owners?
    How will the new person use the property?
     
  10. Leo75

    Leo75 Member

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    Agreed Scott.
     
  11. Leo75

    Leo75 Member

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    Thanks Terry, these are the questions we are grappling with. I am suggesting she rent it out and not sell. All too hard.
     
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    She will need the others to agree to that too. And they should be on the lease.