This legislation is the principle remedy for relief in situations where there is a dispute as to whether a jointly owned property should be sold and/or to determine the amount of beneficial shares each owner has. The act can also be used where a property is registered in a sole name but another person claims to have a beneficial interest. Applications are made under Section 14 of the Act.
Buying a property with a friend or partner always seems like a good idea. You can buy a property in two ways either as joint tenants where each party owns an equal share of the property or alternatively as tenants in common where although each party has a beneficial interest, that interest has not been stipulated in percentage terms. When buying a property, you should seek clarification from your solicitor as to how your beneficial interest is apportioned.
When a dispute happens, the easiest way of resolving matters is for one party to buy the other out or decide on the best way to dispose of the property that works for both parties.
If an agreement is not possible, you can make an application to the Court under Section 14 for an Order for Sale and for the Court to determine what apportionments should be made.
In deciding whether to make an Order, the court will look at:
• The intention of the parties when the property was purchased.
• The welfare of any children who live in the property
• The interests of any secured creditors
• The value of the property
The process for these applications are often complex and it is imperative that procedure is followed precisely as a Court may refuse to grant the application or impose sanctions and costs orders in the event of errors being made.
If you are involved in a dispute over the ownership of a property, our specialist team are able to advise you and deal with any applications made to the Court.
Summerfield Browne have offices in Leicester, Birmingham, London, Oxford, Cambridge and Market Harborough.
