Property Co-ownership: What happens if I want to sell my portion?
There are many options if you either want or need to sell your share in co-owned property. It is in all parties’ best interests to invest in a co-ownership agreement prior to purchasing the property. The ownership agreement should include options to ensure consensus has been reached in advance to avoid future disputes.
A number of possibilities include:
Offer your share to your co-owners
The easiest option could be to ask your co-owners if they would like to purchase your share in the property. This allows you to negotiate the price with them directly, avoiding a real estate agent’s selling fees. Once an agreement has been reached a contract of sale for your portion of the property can be drawn up. However this can also be a source of conflict as you will want the highest price for your portion, while the co-owners will want the lowest. It is advisable to discuss and agree on the process in advance.
Let someone else move in and pay your share of the mortgage
This way you keep your share in the property and it becomes an investment for you. If you want or are required to, you can move back in at some point in the future. Once again, a frank and open discussion with your co-owners on your tenant selection process will minimise disputes.
Find someone else who wants to buy your share in the property
You or one of your co-owners might know a friend who would like to ‘get a foot’ on the property ladder. If so, discuss it with your co-owners, make suggestions and start negotiations.
All agree to sell the property
They co-owners may be in a similar position and be relieved at the idea of selling. Discuss your intentions with your co-owners and follow your agreed plan to exit the property.
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