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Selling Share of Co-Owned Property - Advice Needed

Discussion in 'The Buying & Selling Process' started by JackyMoon1234, 8th Sep, 2016.

  1. JackyMoon1234

    JackyMoon1234 New Member

    8th Sep, 2016

    Approximately 4 years ago I purchased a property with 3 close friends in a "tenants in common" arrangement and we are now discussing having my share bought out by my partners. I am seeking general advice and opinion both on the best course of action and how this process is likely to go down. Does this transaction take place similar to a standard property sale or is it more similar to refinancing the property? Does the transaction essentially end up being they pay me the difference between the "sale price" and the mortgage, divided by 4? Is stamp duty payable?

    Also, prior to this option being discussed, we had been attempting to sell the property for the past 6-9 months through a real estate agency which is owned by 1 my fellow co-owners. He believes they are entitled to some payment (ie commission) for the time spent attempting to sell the property (the other 2 co-owners also work for said real estate agency and engaged in the attempts to sell including several open homes). Is this reasonable? I am willing to deduct something off the amount I receive to allow for this regardless of whether I am legally obliged to as he is still a friend of mine and the 3 of them did appear to try very hard to sell the property. However, it is my understanding that without making the sale we as a syndicate aren't obliged to pay the firm anything? What are the legal and ethical implications of this situation?

    All thoughts, opinions, idle speculation and criticism is welcomed.
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    18th Jun, 2015
    You will be selling the share so not just a refinance. You should have a contract of sale and they will need to apply for with their lender to purchase your share.

    What was your agreement with the agency? Usually if they cannot sell there is no payment unless you agreed for marketing costs.

    Keep in mind if they do not agree to buy you out you will be stuck and would need to apply to the Supreme court to appoint a trustee to sell and this would cost a fortune.
    Perthguy likes this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

    18th Jun, 2015
    Sydney or NSW or Australia
    Bang on with your conclusion - no sale, no commission but....did they pay for any marketing? Eg photos, listing fee on paid websites au or domain, preparation of plans, print media etc?

    You would only be liable for your 1/4 share.