What happens to a property when joint owners fall out?

Co-ownership of property with family members or friends is becoming increasingly popular, as the price of property continues to rise. But what happens when the joint owners fall out and cannot agree on what to do with the property?

This was the question recently posed by one of our clients.

Our client and their sibling bought a property together as joint tenants. Since the property was purchased, both siblings have lived at the property with their partners and have equally contributed to the mortgage payments. The siblings have since had multiple disagreements and now no longer want to live at the Property together, but they cannot agree on how the property should be dealt with.

Our client approached us as they wanted to buy their sibling’s share in the property and own the property in just their and their partner’s names.  

Trusts of Land and Appointment of Trustees Act 1996 (“TOLATA”).

As we advised our client, disputes about ownership and disposal of a jointly owned property between non-married parties are governed by TOLATA.

TOLATA sets out the orders the Court can make in relation to a jointly owner property, where the owners cannot agree on how the property should be dealt with. Orders the court can make include:

• An Order declaring the size of a party’s interest in the property; and
• An Order for the property to be sold and how the sale should be conducted.

Despite what many people think and wish for, as our client did when they approached us, the Court cannot order that one owner sell their share in the property to the other owner.

Based on our client’s specific circumstances and the remedies available under TOLATA, amongst other recommendations, we advised our client that the most appropriate order to ask the Court to make would be an order for sale, with our client having first purchase rights.

Our client has opted to follow our advice and we are currently instructed in relation to the dispute with their sibling.

If you, or someone you know, is in a similar position to our client, then do not hesitate to contact us on 0121 355 0011 for a free, no obligation conversation with one of our solicitors to see how we may be able to assist you.

Please note that individual circumstances vary greatly and that the above is not a substitute for legal advice.