Legal Question in Real Estate Law in California
majority owner
If a person is the majority owner of a residential property, does she have the right to sell the property?
2 Answers from Attorneys
Re: majority owner
With consent of all on title, or by court order you'd get if you have to sue. If that happens, and the property is in SoCAL, feel free to contact me for the legal help you'll need. An attorney may be able to persuade the resisting parties to go along without the need for suit.
Re: majority owner
No. An owner of anything can sell only what she owns, and cannot act on behalf of other owners.
If Mary owns 90% of Blackacre, and John owns 10%, whatever Mary does, John will still own 10%, but he might have a new co-owner.
Of course, there aren't many folks wanting to buy 90% of Blackacre, so Mary probably isn't going to get much if she tries to sell!
As a practical matter, when co-owners can't get along any more and neither wants to (or neither can afford to) buy the other out, the law provides the remedy of a lawsuit for "partition." In a partition suit, the court orders the co-owned property sold, then the net proceeds after paying off loans, commissions, tax liens, etc. are divided between the owners in proportion to their interests prior to sale......Mary would get 90% and John 10% after the forced sale of Blackacre. In addition, the Court can adjust the percentages to reimburse a former co-owner who paid more than her or his fair share of necessary expenses such as loan payments, property taxes, insurance and necessary repairs.
To repeat, a majority owner can sell her majority share, but not the whole thing. Similarly, a minority owner can sell his minority interest. As a practical matter, there is little to no market for part shares in most kinds of property.
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