I am a 25% shareholder as tenants in common in an investment property in PErth WA where the other party wants to sell and I do not. They are stating the advice they have is the majority owner has the indefencible right to apply to the Supreme Court for the property to be sold.
Does anyone know if this is correct? I have searched the net for answers on this matter but only come up with "in the event of death what happens to the party" no clear answer as to what happens when one party does not want to sell and the other does.
I thought each shareholding could be sold, but one party could not make the other party sell.
I have offered my share to the other party but they will not accept the price I have stated, so now want the whole property to be placed on the open market.
I would appreciate any advice on this matter please
cheers
heatherI don't know for sure, but have heard something similar – that if all parties do not agree, then one party can take the matter to the supreme court.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I heard a very similar case being discussed on a talk back radio show. They both had 50/50 stake in the property (originally two brothers, one of the brothers had passd away and now his wife wanted to sell) the wife was taking it to the the Supreme Court.
There was a very good chance that he would be forced to sell or he could buy out the other person.
First things first go and get legal advice and good luck.
As far as I know, tenants in common are permitted to independently sell their own portion of the property. This sounds good in theory however who wants to buy only 75% of it? Not many. Consequently it will result in a lower price being achieved for the parties involved – hence the other parties wanting you to join in the sale of the entire property.
Is it an option for you to buy the other 75% or another 25% + another party/associate/friend buying the other 50%?
Selling for you at the moment may not be the best option (trigger of capital gain etc) – so look at other avenues.
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