Owning a property with a sibling can work well when everyone agrees on what should happen next. However, disputes often arise when one sibling wants to sell the property and the other refuses. This situation can be particularly stressful where the property has been inherited, both parties are contributing towards expenses, or one sibling is living in the property while the other receives no benefit from their share.
If you jointly own a property and cannot agree on whether it should be sold, you may have legal options available to you.
Can a Joint Owner Refuse to Sell?
In England and Wales, a property cannot usually be sold without the agreement of all legal owners. This means that if one sibling refuses to cooperate, the sale can become stalled indefinitely.
Unfortunately, many people find themselves in a position where they remain financially tied to a property they no longer wish to own. This can create difficulties where mortgage payments, maintenance costs, insurance, council tax or other expenses continue to accrue.
What Is a TOLATA Claim?
Where joint owners cannot reach an agreement, the Trusts of Land and Appointment of Trustees Act 1996 (commonly known as TOLATA) may provide a solution.
A TOLATA claim allows the Court to determine issues relating to jointly owned property, including:
- Whether the property should be sold.
- The respective ownership shares of the parties.
- Whether one owner should compensate another for occupation or expenses.
- How the proceeds of sale should be divided.
The Court has the power to order the sale of a property where it considers this to be appropriate.
Does Going to Court Mean the Property Will Be Sold?
Every case depends on its individual circumstances. The Court will consider a range of factors including:
- The intentions of the owners when the property was acquired.
- The purpose for which the property is held.
- The welfare of any children living at the property.
- The interests of any secured lenders.
- The conduct and circumstances of the parties.
In many cases, legal advice and negotiation can help resolve matters before Court proceedings become necessary.
Why Early Legal Advice Matters
Property disputes between family members can quickly become emotional and complex. Delays can lead to increased legal costs, ongoing financial obligations and further deterioration in family relationships.
Seeking legal advice at an early stage can help you understand your position, assess your options and explore whether a negotiated settlement can be achieved.
