Owning property jointly, whether with a partner, friend, family member, or business associate, can be a great way to get on the property ladder or build on your property portfolio. However, when relationships sour or circumstances change, joint ownership can lead to disputes that are emotionally and financially draining.
We have specialist dispute resolution lawyers who can assist you in dealing with all kinds of joint property ownership disputes.
Joint property ownership disputes can arise from various situations, making it crucial to seek expert legal advice.
If you’re facing a disagreement over a jointly owned property, understanding your rights and the legal framework can make all the difference. Here’s what you need to know.
Types of joint property ownership in the UK
Before diving into disputes, it’s essential to understand how joint ownership is structured:
- Joint Tenants
- Each person owns the entire property jointly.
- There is no divisible share.
- If one owner dies, their share automatically passes to the other (right of survivorship).
- Common among married couples or long-term partners.
- Tenants in Common
- Each person owns a specific share (not necessarily equal).
- Shares can be passed on in a will.
- Common among friends, business partners, or unmarried couples.
You can find out how you own a jointly owned property by checking the title deeds. Knowing how the property is held can help to determine your rights during a dispute.
Common causes of disputes
Joint property ownership disputes often arise due to:
- Breakdowns in relationships (divorce, friendship ending, family fallout).
- Disagreements over selling the property.
- One owner contributing more financially but not having that reflected in ownership.
- Failure to maintain or contribute to property costs.
- Inheritance disputes involving family-owned property.
Is there a Declaration of Trust?
A Declaration of Trust is a legal document that outlines:
- Each owner’s financial contribution
- How proceeds should be split on sale
- What happens if one party wants to sell
If one exists, it’s likely to carry significant weight in resolving disputes. If not, courts may have to infer intentions based on contributions and conduct.
How to resolve a dispute
Here are your main options:
- Negotiation
Try to resolve the matter informally first. This is often the least stressful and most cost-effective option.
- Mediation
An independent mediator can help both parties reach an agreement without going to court. This is dependent upon the parties’ position.
- Legal Action: TOLATA Claims
Under the Trusts of Land and Appointment of Trustees Act 1996 (“TOLATA”), a trustee of land can apply to the court to:
- Force the sale of the property
- Determine the size of each owner’s share
- Recover your financial contribution
This is often the route taken when informal discussions fail, especially in cases of cohabiting couples or business partners.
What will the court consider?
The court may look at:
- The legal title (who is named on the deeds)
- Any agreements (written or oral) made at the time of purchase
- Financial contributions toward deposit, mortgage, or renovations
- Intentions of the parties at the time of purchase
Can one party be forced to sell?
Yes. If you apply to court and the judge agrees that the property should be sold, it can be ordered even if the other owner disagrees. However, this is usually a last resort, and courts may consider things like:
- Whether children live at the property
- Any hardship caused by the sale
- Whether one party has another place to live
Legal advice
Disputes over joint ownership can be complex, particularly if emotions are running high or if there’s no written agreement. It is advisable that all parties take independent legal advice at the earliest opportunity, to help parties understand your rights, negotiate a fair settlement, or assist with the court process if necessary.
We have specialist dispute resolution lawyers who would be happy to help.
Final thoughts
Joint property ownership can become complicated when expectations aren’t clearly documented from the start. Whether you’re buying with a partner, friend, or family member, always get legal advice and consider drawing up a Declaration of Trust.
If you’re already in a dispute, get in touch with one of our specialists who will do their best to assist.
Please email enquiries@jacksons.law or call 0333 210 1876 and one of our team will be able to assist you.
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