VIC Shares of a property

[Odi123]

Hey guys. Basically, 3 people have ownership of a house. 1 has passed away and the other has made no contribution to mortgage payment (which is done now), rates etc. We want to sell the property however the person who has made no contribution wants 1/3 of the share, and the 5 children of the deceased person want their share. The house was bought in 1995 and we have lived in the house and have paid all of the mortgage and rates and all of the other payments since 1997, so for more than 20 years we have paid for everything without anyone else making any sort of contribution whatsoever. What can/should we do?

Thank you.

 

[CSFLW]

Hello Odi

How is the property registered: tenants in common or joint proprietors?

 

[Odi123]

Hello Odi

How is the property registered: tenants in common or joint proprietors?

Hi! I'm going to have to double check with that one. What difference do they make in this situation?

 

[CSFLW]

It makes a big difference re: the distribution of the surviving proprietors.

 

[Odi123]

It makes a big difference re: the distribution of the surviving proprietors.

Oh yes. The property is Tenants in Common.

 

[CSFLW]

Hello Odi

Thanks for getting back.

Because there is more information we would need to help you, please email us ([email protected]) your number.

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[Harry De Elle]

Hi O,
As you say if the property is owned in tenants in common then each party is free to dispose of their share as they wish at any time.
The share may have been agreed to have been a 1/3 equal share and the certificate of title should describe this.
The deceased party ought to have had a will in which outlined how that share of the estate was being dispositioned. If not then other issues arise.
On the facts which you have presented you should:

1. Acknowledge that if the five children were beneficiaries of the deceased then they are entitled to his share of the property
2. Although the deceased may have not contributed financially they may have contributed non financially to the property and given the passage of time this has been the accepted status quo between the parties.
3. As you say it has been 20 years so you may estopped to argue anything to the contrary as to why they do not deserve a 1/3 share.
4. Get a property valuation by a certified property valuer which all parties agree to and establish what is the market value of the property
5. By mutual agreement buy out the 1/3 share of the 5 children
6. The property ownership can then be adjusted to reflect the new manner of ownership between the surviving owners, either a 1/2 equal share if agreed (subject to what the buyout contribution was by each party and the resulting negotiations)