Owning a property with someone else can become complicated when one person wants to sell and the other refuses. This commonly happens when unmarried couples separate, family members inherit a property together or friends who bought a house jointly no longer agree about what to do with it.
If you are in this position, you may be able to force the sale of a jointly owned property by applying for a court order. However, being a joint owner does not automatically give you the right to sell without the other owner’s agreement.
In England and Wales, the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) provides a legal route for resolving certain property ownership disputes, including applications for an order for sale.
AFG Law’s Dispute Resolution team advises individuals involved in jointly owned property disputes. Whether you want to sell the property or oppose a proposed sale, we can advise on your legal position and the options available.
Can one joint owner force the sale of a property?
Where a property is jointly owned, both legal owners will generally need to agree before it can be sold voluntarily. If one owner refuses to cooperate, the other can potentially apply to the court for an order for sale under TOLATA.
For example, you might have purchased a house with a former partner who continues to occupy the property but refuses to sell or buy out your interest. Alternatively, you may have inherited a property with a sibling who wants to retain it when you would prefer to receive your share of its value.
The court has the power to resolve these disagreements, but it will consider the circumstances rather than automatically granting a sale whenever one of the owners wishes to leave.
Does it matter whether we are joint tenants or tenants in common?
Yes. Before taking any action, it is important to establish how the property is owned.
Joint tenants own the property together without having separate, defined beneficial shares. If one owner dies, their interest automatically passes to the surviving joint owner or owners.
Tenants in common, on the other hand, each own a distinct beneficial share of the property. Those shares may be equal or unequal and can be left to someone else in a Will.
Both forms of ownership can give rise to disputes about selling a property. However, the distinction can be particularly important where there is disagreement about how the sale proceeds should be divided.
You can obtain the registered title from HM Land Registry to establish who the legal owners are. However, the Land Registry title does not necessarily establish each person’s beneficial share. A declaration of trust and other evidence may also need to be reviewed.
What is a TOLATA claim?
The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) provides a legal basis for dealing with disputes involving property held on trust.
Under section 14, a person with the necessary interest in the property can apply for orders relating to the trustees’ functions or a declaration establishing the nature and extent of someone’s interest.
For someone seeking the sale of a jointly owned property, this can include asking the court to order that the property be sold despite another owner’s objections.
TOLATA can also be relevant where the disagreement concerns the share of the property each person owns, rather than whether it should be sold.
What will the court consider before ordering a sale?
An order for sale is not guaranteed. Under section 15 of TOLATA, the court considers several factors, including the intentions of those who created the trust, the purpose for which the property is held, the welfare of any children living there and the interests of secured creditors, such as a mortgage lender.
The circumstances and wishes of the beneficial owners can also be relevant.
For example, a property originally purchased as a family home may have served its intended purpose while the owners lived together. If their relationship has ended and they now live separately, the court can take those changed circumstances into account.
However, if one owner continues to live in the property with young children, their housing circumstances may be relevant when deciding whether to order an immediate sale or postpone it.
The court must assess the evidence in each case. It can make different court orders depending on the circumstances.
What if the other owner refuses to leave the property?
If the other owner refuses to move out, you should not assume that you can change the locks or exclude them from the property.
Joint legal owners will generally have rights to occupy the property. Where those rights are disputed, the appropriate course of action may be to seek a court order rather than attempting to remove the other owner yourself.
If an order for sale is granted and the other owner still refuses to cooperate, further steps may be needed to implement the order.
Your solicitor can advise on the terms of the order and the appropriate enforcement procedure.
Can I buy out the other owner’s share instead?
Forcing a sale is not the only way to resolve a disagreement over jointly owned property. If one owner wants to remain in the house, they may be able to buy the other’s interest. This can allow one person to retain the property while the other receives an agreed payment for their share.
The parties will need to agree on the property’s value, their respective beneficial interests and how any outstanding mortgage will be dealt with. If the remaining owner needs a mortgage to finance the purchase, the lender’s approval will also be required.
Where both owners wish to sell but disagree about the asking price or division of the proceeds, solicitor-led negotiations or mediation may help resolve the outstanding issues without contested proceedings.
What if we disagree about how much of the property we own?
Not all ownership disputes concern whether the property should be sold. Sometimes both parties agree to sell but disagree about how the money should be divided.
One owner may have contributed a larger deposit, paid more towards the mortgage or funded substantial improvements. Whether those contributions affect their beneficial interest depends on the ownership arrangements and the available evidence.
A declaration of trust can be particularly important if the owners agreed that they would hold the property in unequal shares.
Where the parties cannot agree, the court can determine the nature and extent of their beneficial interests under TOLATA.
It is therefore important to establish what each person is legally entitled to before agreeing to divide the proceeds.
Do I have to go to court to force a sale?
Not necessarily. Court proceedings can be expensive and time-consuming, so it is worth considering whether the dispute can be resolved through negotiation or mediation.
A solicitor can write to the other owner, explain your legal position and propose a practical solution. This might involve selling the property on the open market, agreeing to a buyout or establishing a timetable for a future sale.
If an agreement cannot be reached, a TOLATA application may be necessary. The court can then determine whether a sale should take place and address any associated disputes about ownership.
How can AFG Law help with jointly owned property disputes?
Disagreements about jointly owned property can leave people unable to move on, access the money invested in their home or make decisions about a property they no longer want to own.
AFG Law’s Dispute Resolution team advises clients on trusts of land, beneficial ownership and applications for an order for sale under TOLATA. We can review the ownership documents, advise on your rights, negotiate with the other owner and represent you in court proceedings where necessary.
Whether you are seeking to sell a jointly owned property or wish to challenge another owner’s proposed sale, contact AFG Law to discuss your circumstances and the options available.