VIC Property Law - Co-Tenant Holding Out Sale to Get More Money?

[Maz McLee]

Hi

I am a co-tenant of a property with two others. I own 50% and they own 25% each. The others want to sell and I have a family member willing to buy their share. We have had a sworn valuation done and one of the co-tenants is happy to sell their share at 25% of the valuation. The other however, wants a significantly higher amount for his share. My property law questions are:

1.Can my daughter buy out one co-tenant and can she then move into the property, even if the other co tenant hasn't sold? (Neither of the other two live on the property)

2. If we cannot agree on a price, what is the likelihood that VCAT will force us to put the property on the market, thereby putting 8 people out of a home, so that the other co-tenant can try to get more money for their share?

Hope you can help!

 

[Rod]

Do you a co-owners agreement? Anything you discussed and agreed before buying the property?

 

[Maz McLee]

No, the property was originally shared with another family member who passed away suddenly and her share went to her children. We had only a verbal agreement that family would always have first option to buy should one party wish to sell.

 

[Rod]

You might need a lawyer to help with this situation.

I suspect you need to make a formal offer of purchase, written the right way, so that if the other party refuses your offer and forces a sale you might be able to recover costs from the other party.

A co-owner can force a sale if they want their money out, but may need to do it a particular way to avoid extra costs if you have made a reasonable offer.

If it goes to auction you can bid on the property If it is listed for private sale, you can buy it Trick is how you pass costs onto the person who has unrealistic price expectations. I don't know how to do that.