Property Transfers & Conveyancing | Laage, Schoeman & Stadler Inc.

Joint ownership of immovable property often begins with a common purpose. Co-owners may purchase property together as family members, partners, spouses, investors, heirs, or business associates. At the outset, the arrangement may appear practical and beneficial to everyone involved.

However, circumstances can change. Relationships may break down, financial positions may shift, one owner may wish to sell while another refuses, or the parties may simply no longer agree on how the property should be used, maintained or dealt with. When co-owners can no longer reach agreement, joint ownership can become difficult, costly and impractical.

We assist clients with disputes relating to the termination of joint ownership of immovable property.

No Co-owner Should Be Forced to Remain a Co-owner Indefinitely

South African law recognises that a co-owner should not ordinarily be forced to remain in co-ownership against his or her will. Where co-owners cannot agree on how the property should be divided, sold, or otherwise dealt with, legal steps may be necessary to bring the joint ownership to an end.

If co-owners cannot agree on the future of the property, a legal remedy known as the actio communi dividundo may be used to bring the co-ownership to an end. Through this process, a court can decide how the property should be dealt with in a manner that is fair and workable. This may include an order that the property be sold and that the proceeds, after payment of the necessary expenses, be divided between the co-owners according to their shares.

When Joint Ownership Becomes a Problem

Disputes regarding jointly owned property may arise in many different situations, including:

where former partners or spouses jointly own immovable property;
where siblings or family members inherit property together;
where business partners jointly own commercial or agricultural property;
where one co-owner occupies the property and the other does not;
where one owner pays expenses and the other refuses to contribute;
where one owner wants to sell and the other refuses;
where the parties cannot agree on the value of the property;
where one co-owner wants to buy out the other’s share;
where there are disputes about improvements made to the property;
where the property is bonded and the parties cannot agree on liability for the bond;
where rental income, occupational benefit or expenses must be accounted for; or
where the relationship between the co-owners has broken down completely.

In such circumstances, it is important to obtain proper legal advice before taking steps that
may prejudice your position.

Possible Ways to Resolve the Dispute

Not every joint ownership dispute must immediately result in litigation. In many matters, the first step is to consider whether the matter can be resolved by agreement.

This may include an agreement that:

one co-owner purchases the other co-owner’s share;
the property is placed on the market and sold;
the parties agree on a valuation process;
the bond, rates, levies and other expenses are settled from the proceeds;
the parties agree on how occupation will be dealt with pending sale;
claims for improvements, expenses or contributions are resolved; and
a written settlement agreement is concluded to regulate the process.

Where agreement is possible, a carefully drafted settlement agreement can often prevent further conflict and unnecessary legal costs. However, where one co-owner refuses to co-operate, refuses to sell, refuses to sign documents, or otherwise makes it impossible to reach a practical solution, litigation maybecome necessary.

Court Proceedings to Terminate Joint Ownership

Where co-owners cannot agree, a court may be approached for appropriate relief. Depending on the facts of the matter, the court may be asked to make an order dealing with issues such as:

the termination of the joint ownership;
the sale of the property;
the appointment of a person to attend to the sale process;
the division of the net proceeds;
payment of outstanding bond amounts, municipal charges, levies or other expenses;
the valuation of the property;
the purchase of one co-owner’s share by another co-owner;
occupation of the property pending finalisation;
occupational benefit or occupational rental;
claims relating to improvements or maintenance; and
any other practical issues required to bring the co-ownership to an end.

The purpose of the process is to achieve a fair and practical outcome where the parties themselves are unable to do so.

Occupation, Expenses and Contributions

Joint ownership disputes often involve more than simply deciding whether the property should be sold. One co-owner may have been living in the property for years, while the other has received no benefit from the property. One party may have paid the bond, rates, levies, insurance or maintenance costs, while the other contributed little or nothing. There may also be disputes about renovations, improvements, rental income, or damage to the property.

These issues must be carefully considered, as they may affect the financial outcome between the parties when the property is sold or when one party buys out the other.

A Practical and Protective Approach

At Laage Schoeman & Stadler Inc, we assist clients in assessing their rights, understanding their options, and taking appropriate steps to bring unworkable joint ownership arrangements to an end.

Our services include:

advising co-owners on their rights and obligations;
reviewing title deeds and ownership structures;
advising on the prospects of settlement;
drafting settlement agreements;
addressing disputes regarding occupation and expenses;
corresponding with the other co-owner or their attorney;
preparing court applications where necessary;
assisting with the sale or transfer process;
dealing with claims for contributions, improvements or occupational benefit; and
guiding clients through the practical and legal consequences of terminating joint ownership.

Protecting Your Interest in the Property

Immovable property is often one of the most valuable assets a person owns. Where joint ownership has become impractical or contentious, delay can make the situation worse. Expenses may accumulate, the property may deteriorate, relationships may become more strained, and the eventual resolution may become more difficult.

Whether the property is a house, farm, sectional title unit, commercial property, inherited property, or investment property, we can assist you in taking the necessary steps to protect your interest and resolve the dispute.