Three partner property investment dispute?
Dear Fellow readers, I have a question regarding partnership law.
Can an investment property held by three partners in equal shares (not under a Limited Company) be sold by two of the partners if the third partner is opposed to the sale as he wants to purchase the property himself?
However, the other two partners will not sell it to him under any circumstances.
I am wondering what the legal position is in this scenario and if the third partner has the right of veto?
I would be most grateful for any advice and experience in this matter.
Jess
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Member Since February 2011 - Comments: 3453 - Articles: 286
11:46 AM, 9th October 2024, About 2 years ago
Hi Jess, Do you have a Partnership agreement and what does it say?
Member Since January 2015 - Comments: 1435 - Articles: 1
4:42 PM, 9th October 2024, About 2 years ago
Reply to the comment left by Neil Patterson at 09/10/2024 – 11:46
If registered at HMLR as 3 registered owners (can be a max of 4) then ALL will need to agree to the sale and sign the TR1.
If No 3 is offering Nos 1&2 market value and no agents fees and minimal legal fees they are crazy not to sell to No 3.
None so daft as folk
Member Since January 2020 - Comments: 5
10:31 AM, 10th October 2024, About 2 years ago
Reply to the comment left by Neil Patterson at 09/10/2024 – 11:46
Hi Neil
Unfortunately no. The property was bought 20 years ago and we got on really well. Over the years the relationship has become toxic.
Member Since January 2016 - Comments: 25
9:16 AM, 12th October 2024, About 1 year ago
Jess,
You need to speak with a property solicitor. You may even be able to get a free initial consultation. This is likely to produce a quick solution. Without any agreement the three partners probably own the property in a ‘trust for sale’ meaning any partner can require the property to be sold. That doesn’t mean that any partner can require the property to be sold to him/her. That would be a matter for negotiation and agreement, but if no agreement is reached the property would have to be marketed in the normal manner, possibly auctioned when any partner(s) wishing to retain it could bid. Clearly reaching an agreement would likely save money if those selling are sure the price is right.