Can a tenant in common force a sale NZ?
The short answer is yes, Peter can force a sale of the property he holds with Humphrey. Peter can apply to the court under s341(1) of the Property Law Act 2007. The court has the power to order the sale of the property as a whole, in part, or require the co-owner to purchase the other co-owner’s share.
What does tenants in common mean in NZ?
A tenancy in common is where two or more people purchase a property together and have defined shares in the property. For example, if A paid 25% of the purchase price for a property and B paid the remaining 75%, the parties could choose to own the property as tenants in common to reflect their individual shares.
Do tenants in common hold equal shares?
Joint tenants own equal shares in the property and received their interest at the same time, with the same deed. Tenants in common do not necessarily own equal shares of the property and may have come to own their shares at different times.
What happens if one tenant in common wants to sell and the others do not?
If a tenant in common refuses to sell, a co-owner can force the sale of the TIC or do a partition. A tenant in common can petition the court to do a forced sale of the entire property. In this situation, the court takes control of the property and the court performs a forced sale.
What are the advantages of tenants in common?
Advantages of tenants in common You get to decide who inherits your share of the property. Therefore the arrangement is well suited to people with children from another marriage, unmarried couples, siblings or business partners buying together. These people are less likely to want the co-owner to inherit their estate.
Can you force a tenant in common to sell?
Can I force them to sell? A If you and your co-owners are tenants in common – and so each own a distinct share of the property – then yes you can force a sale.
What are the disadvantages of tenants in common?
Tenants in common disadvantages include: A joint tenancy is simpler and you do not have to work out shares. If a co owner dies and they do not have a will in place, then the property will go through the probate process. This is costly and takes time, so your children may not receive your inheritance as quickly.
Can I sell my share of tenants in common?
Tenant in Common (TIC) Agreeing to Sell A single tenant in common cannot legally sell the entire property without permission from all co-owners. If all owners agree to sell, the property can go on the market and if it makes a profit, each owner receives a share that’s equal to their ownership share.
Can you force a sale with tenants in common?
What are the pitfalls of tenants in common?
What are the negatives of tenants in common?
Disadvantages of Tenants in Common All tenants have equal right to possession. The main problem with Tenants In Common is that the other tenant(s) can do whatever they want with their interest in the property. One of the co-owners could take out a loan on his/her interest in the property.
What are disadvantages of being tenants in common?
DISADVANTAGES OF TENANTS IN COMMON Tenants in Common is a more complex arrangement and some people may prefer the simplicity and efficiency of the home passing by survivorship. In some cases where the first partner needs to go into care, Tenants in Common can produce unwanted disadvantages.