Tenants in Common Disputes: What to Do if One Owner Wants to Sell

Owning property with someone else sounds straightforward, until one person wants to sell. That’s when things get complicated, and regardless of whether you own as tenants-in-common with a friend, sibling, or ex-partner, navigating what to do when you’re no longer on the same page can become a headache.

Our specialist property litigation team act in these disputes nationally, across the country, helping advise on your rights and what you can do to force a resolution, where necessary. Don’t hesitate to contact us if you think you need advice and assistance on your situation and position overall. 

Here’s what you need to understand about being tenants in common, and what steps you’ll need to take when you’re looking to end your shared ownership.

Understanding Tenants in Common

Tenants in common is a form of property co-ownership where two or more people hold separate, defined property shares. These shares don’t have to be equal. For example, one owner might hold 70%, another 30%, but this division should be clear and documented. Each co-owner can pass on their share in a will, and unlike joint tenancy, there’s no automatic right of survivorship (meaning that, on death, your part of the property would pass to your co-owner).

This arrangement is often chosen by friends buying together, couples who want to protect unequal contributions, or business partners investing in property. However, while flexibility can be useful, it also opens the door to disputes, particularly when one party wants to sell and the others don’t.

When that happens, things can escalate quickly. The best way to prevent this is to set up a co-ownership agreement prior to your purchase of the property. If you didn’t manage to do that, though, don’t worry; there are still steps you can take to resolve this amicably.

What Steps Can You Take When One Owner Wants to Sell?

1. Start With a Conversation

The first step is always to talk. It sounds simple, but honest communication can go a long way. Discuss why the other person wants to sell and whether there’s room for compromise. Maybe a refinance or buyout is possible. This won’t always resolve the situation, but it helps, even if all you achieve is clarified intentions and not jumping straight into a legal battle.

2. Get advice on your specific situation. 

If you have tried to reach agreement without success, your next step is to seek advice from specialists on where you stand, and on your options moving forwards. Usually it will be possible for you to force sale- but this will need to be checked, and that will mean checking the title deed and key documents to confirm the type of ownership and your respective shares- the share you own will determine who receives what from the proceeds of sale and so is very important. If you entered into a declaration of trust or co-ownership agreement at the time of purchase, now’s the time to dust it off. These documents may contain provisions for resolving disagreements, records the specific shares owned by each co-owner, sale rights, or buyout clauses. This is the point where we usually get involved so you know the pros and cons and understand your best next steps.

3. Set out your potential claim and simultaneously explore alternatives

Before issuing court proceedings its necessary to draft and send a detailed letter of claim. This ensures you’re compliant with court expectations, and can seek recovery of your costs. As part of this process we also consider with you whether a buyout or other alternative might work, but usually you’ve already covered this in your initial conversations, so caution is needed to prevent further delay- time and money being lost or wasted- especially if one party is still in the property. If an agreement can be reached, now is the time to consider it.

4. Issue Court Proceedings 

Whether you’re the one wanting to sell or the one being pushed into it, if there are no alternatives it can be necessary to issue court proceedings to push for a resolution- and ultimately to force sale. If pursued in the correct way it can also be possible to recover legal costs out of the other party’s share of the proceeds of sale. A specialist litigation solicitor can assist you in understanding your rights and outline your options in a way that’s tailored to your unique circumstances. This early step can also help you avoid decisions that weaken your position later and force you to incur unnecessary costs to remedy them

When informal discussions and mediation fail, it may be necessary to take legal action to resolve the dispute.

Under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), any co-owner is entitled to apply to the court for an order forcing the sale of the property. The court will consider several factors, including each party’s intentions and any document, but most often we can force this outcome where we’re instructed from the outset. If granted, the property will usually be sold and proceeds divided according to ownership shares, to be determined by the court if not agreed.

Claim for a Declaration of Trust

If there’s a dispute over how much of the property each person owns, especially when there’s no formal agreement, the court can make a declaration of the beneficial interests. This helps set out the entitlements before any sale or buyout takes place. This option is particularly useful when one party has contributed more financially, such as by paying the majority of the deposit and subsequent mortgage payments, but the ownership isn’t reflected on the title.

Claim for Use and Occupational Rent

Occupational rent can be claimed where property ownership is shared, but all owners do not equally enjoy the benefits of the property. This happens when one party lives on the property, and the other co-owner doesn’t. The law says that the party benefiting from the property should pay a sum to the other party. This is usually calculated as a percentage of the market rent if the property were rented. 

For example, if you moved out of the property for 12 months and own a 50% share. You might be entitled to £1,000 per calendar month for a total of £12,000 if the market rent for the property is £2,000 per month.

Injunction to Prevent a Sale

In rare cases, a co-owner may seek an injunction to stop a sale, especially if they believe the sale would be unjust, premature, or in breach of another agreement.

Preventative Measures for Co-Ownership

The best time to manage a co-ownership dispute is before it starts. Here are some preventative steps that can save significant stress (and money) down the line:

• Create a Declaration of Trust: This legal document should set out each party’s share of the property and what should happen if one party wants to sell. It makes things clear and can prevent arguments over entitlements later on.
• Draft a Co-Ownership Agreement: Beyond financial shares, this agreement can set expectations around use of the property, how decisions will be made, and how disputes will be handled. Think of it as a property prenup.
• Review Agreements Regularly: Circumstances change. If someone contributes significantly to renovations or pays more toward the mortgage, update your agreement to reflect it. Keeping things current helps reduce future conflict.
• Keep Written Records: Whether you’re transferring money, paying bills, or agreeing to any change, put it in writing. Clear records are invaluable if things later end up in court.
• Get Legal Advice Before You Sell: A solicitor can walk you through your options and help ensure everything is documented correctly. It might feel a bit formal at the time, but it’s far easier than sorting things out after a dispute has already arisen.

Frequently Asked Questions

What Happens if One Person Wants to Sell a Property and the Other Doesn’t?

When property is owned as tenants in common, each co-owner has the right to deal with their share, that can include forcing the others to sell and if discussions break down, the co-owner who wants to sell are entitled to apply to court for an order for sale under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). 

Property Disputes Require Communication, Strategy, and Legal Advice

Disputes between tenants in common can be stressful, especially when communication breaks down and no clear agreement is in place. Whether you’re trying to resolve a disagreement amicably or facing the prospect of legal action, early and informed advice from specialist litigation solicitors can make all the difference. Our property litigation team at Helix Law are recognised nationally as being experienced expects in dealing with co-ownership disputes and helping clients protect and improve your interests, whether negotiating a fair solution or taking matters to court. Get in touch with us today for tailored advice.