Partnership question

[framedoc]

Hi All

I have a simple question in regards to property partnerships that someone here is sure to know the answer to.

When it comes time to sell the 50/50 joint partnership property do both parties have to agree to sell or can it be decided by one party?

As always thanks in advance for any help with this one.

 

[Smile]

I suppose if only one person wanted to sell he would only be able to sell his half only.
.

 

[framedoc]

Thanks for your reply.

 

[Jamie]

I suppose if only one person wanted to sell he would only be able to sell his half only.
.

Hi Smile/Framedoc,

While this is one scenario, it is by no means the only option. The simplest answer to your question is this - what happens when a property is sold depends entirely on what steps were taken when the partnership was formed.

A similar analogy is the adage that "you make your money in property when you buy, not when you sell"... so too does the success of a partnership rely on the what steps you took in the beginning.

Any good partnership agreement should detail what happens under different sorts of circumstances - do you sell, do you refinance, do you use the property as security on further purchases, etc etc. Any agreement that does not sort this out in the beginning is, in my opinion, fraught with danger.

So the answer to your question is: What arrangements did you set up when you went into the partnership?

Best wishes,

Jamie.

 

[stanley]

When it comes time to sell the 50/50 joint partnership property do both parties have to agree to sell or can it be decided by one party?

I think that both parties would have to agree to sell?
Wouldn't it depend if the property was bought as tenants in common, or joint tenants? Or are you referring to a business partnership?

 

[asy]

In addition to Jamie's (as usual) splendid reply...

It also depends on what kind of title you have.

Is it Joint Proprietors, or Tenants in Common?

If you are Joint Proprietors, then yes, both of you need to sign to sell, BUT if it's Tenants in Common you can sell your half without the authority of the other partner (although in reality, it will be difficult to find a buyer...).

hope this helps,

asy

Oooh, Stanley has answered similarly while I was writing this (I took a while)...

 

[Terry_w]

If one joint owner of a property wants to sell and the other doesn't it is possible to apply to the courts to have a trustee appointed to sell the property - in NSW this is covered under s66R (?) Conveyancing Act.