How to Take Action Against the Co‐Owner of Your Property
Get an appraisal of the property., Consult a real estate professional., Negotiate a price., Draft a written agreement., Sign and record your written agreement.
Step-by-Step Guide
-
Step 1: Get an appraisal of the property.
Before you talk to the other owner about the possibility of buying them out, you need to have a good idea of what the property is worth so you can quantify their ownership interest in the property.Even if the property has previously been appraised, you typically want to get a new appraisal if the other one is several years old.
You may want to raise the issue with the other owner so they are at least aware that you are getting the property appraised and have the opportunity to hire their own appraiser to provide a second opinion. -
Step 2: Consult a real estate professional.
It's a good idea to talk to an attorney or real estate broker before you start negotiating with the other owner so you can be sure that the exchange is conducted properly and any agreement entered satisfies legal requirements.A real estate broker can give you insight into the potential market for the property – which may differ from its appraised value – and the key positives and negatives of it, from a real estate standpoint.
An experienced real estate attorney will be able to assess your legal options and let you know what steps you should take to resolve the dispute between you and the co-owner.
These professionals also may be able to give you other information depending on the differences between you and the co-owner.
For example, if you and the co-owner are at odds because the co-owner wants to develop the property and you do not, an attorney could advise you on zoning restrictions in the area that would make development expensive if not impossible. , You must sit down with the co-owner and any professionals hired to discuss the overall value of the property and the value of their interest in the property.
Together you can work out a deal to buy them out.You may want to suggest using a mediator if communications between you and the co-owner of your property are particularly tense.
In most cases, the mediator goes back and forth between the two parties and they spend little time involved in face-to-face negotiations.
If you are able to sit down with the co-owner and discuss the situation in a civilized, professional manner, do your best to briefly summarize the dispute and the facts that have led to your decision to buy them out.
Sticking to the facts, describe the points that led to the valuation of the co-owner's interest in the property.
Present the appraisal and make an offer.
Don't start with the maximum amount you're willing to pay the co-owner, because this will leave no room to negotiate.
At the same time, you don't want your initial offer to be so low that the co-owner is insulted. , Any sell or transfer of an ownership interest in real property must be in writing to have any legal effect.
If you hired an attorney or broker, they may draft the agreement for you.The written agreement must identify the property specifically and indicate the ownership interest that is being transferred.
Use the property description set out in the deed.
If you haven't been working with a professional up to this point, you may want to consider hiring someone to draft the agreement so you know it covers everything it needs to cover and will be legally enforceable.
Keep in mind that presumably, if you are buying out the other owner, a significant amount of money is changing hands.
Protect that investment by making sure the written agreement is done right and the former co-owner can't cause you problems in the future. , To finalize the ownership transfer, both you and the co-owner must sign the agreement using the procedure required by your state's property law, then record the document with the county recorder of the county where the property is located.Typically both you and the co-owner must sign the documents in the presence of a notary public or other witnesses.
The county clerk will have information on the required signing process.
One the agreement is signed, make two copies of it so both you and the co-owner have a copy for your records.
If the agreement was notarized, you may want to sign three copies so they are all originals with the raised stamp of the notary.
Keep in mind that you will have to pay a small fee – typically under $100 – to have the agreement recorded. -
Step 3: Negotiate a price.
-
Step 4: Draft a written agreement.
-
Step 5: Sign and record your written agreement.
Detailed Guide
Before you talk to the other owner about the possibility of buying them out, you need to have a good idea of what the property is worth so you can quantify their ownership interest in the property.Even if the property has previously been appraised, you typically want to get a new appraisal if the other one is several years old.
You may want to raise the issue with the other owner so they are at least aware that you are getting the property appraised and have the opportunity to hire their own appraiser to provide a second opinion.
It's a good idea to talk to an attorney or real estate broker before you start negotiating with the other owner so you can be sure that the exchange is conducted properly and any agreement entered satisfies legal requirements.A real estate broker can give you insight into the potential market for the property – which may differ from its appraised value – and the key positives and negatives of it, from a real estate standpoint.
An experienced real estate attorney will be able to assess your legal options and let you know what steps you should take to resolve the dispute between you and the co-owner.
These professionals also may be able to give you other information depending on the differences between you and the co-owner.
For example, if you and the co-owner are at odds because the co-owner wants to develop the property and you do not, an attorney could advise you on zoning restrictions in the area that would make development expensive if not impossible. , You must sit down with the co-owner and any professionals hired to discuss the overall value of the property and the value of their interest in the property.
Together you can work out a deal to buy them out.You may want to suggest using a mediator if communications between you and the co-owner of your property are particularly tense.
In most cases, the mediator goes back and forth between the two parties and they spend little time involved in face-to-face negotiations.
If you are able to sit down with the co-owner and discuss the situation in a civilized, professional manner, do your best to briefly summarize the dispute and the facts that have led to your decision to buy them out.
Sticking to the facts, describe the points that led to the valuation of the co-owner's interest in the property.
Present the appraisal and make an offer.
Don't start with the maximum amount you're willing to pay the co-owner, because this will leave no room to negotiate.
At the same time, you don't want your initial offer to be so low that the co-owner is insulted. , Any sell or transfer of an ownership interest in real property must be in writing to have any legal effect.
If you hired an attorney or broker, they may draft the agreement for you.The written agreement must identify the property specifically and indicate the ownership interest that is being transferred.
Use the property description set out in the deed.
If you haven't been working with a professional up to this point, you may want to consider hiring someone to draft the agreement so you know it covers everything it needs to cover and will be legally enforceable.
Keep in mind that presumably, if you are buying out the other owner, a significant amount of money is changing hands.
Protect that investment by making sure the written agreement is done right and the former co-owner can't cause you problems in the future. , To finalize the ownership transfer, both you and the co-owner must sign the agreement using the procedure required by your state's property law, then record the document with the county recorder of the county where the property is located.Typically both you and the co-owner must sign the documents in the presence of a notary public or other witnesses.
The county clerk will have information on the required signing process.
One the agreement is signed, make two copies of it so both you and the co-owner have a copy for your records.
If the agreement was notarized, you may want to sign three copies so they are all originals with the raised stamp of the notary.
Keep in mind that you will have to pay a small fee – typically under $100 – to have the agreement recorded.
About the Author
Michelle Johnson
Experienced content creator specializing in organization guides and tutorials.
Rate This Guide
How helpful was this guide? Click to rate: