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Thread: Property ownership - divided share vs undivided & other questions re shared ownership

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    Property ownership - divided share vs undivided & other questions re shared ownership

    I have some questions about joint property ownership when buying property jointly with others (not with a spouse, but other unrelated people):

    1) How does one know if the shared ownership is an "undivided share"? Is there a de facto in law?
    2) It there such a thing as a "divided share"?
    3) If two parties own a property as specified 50% each on the title deed, do all decisions about the property have to be jointly agreed or can one person do something such as pave a garden, install a new door or paint a different color without the other parties agreement?
    4) If a share is an "undivided share", can the shareholder legally sell his share without the agreement of the remaining shareholder?

    My family entered into a 50% joint property ownership with another party many years ago. The did all the arrangements with the other owner on a handshake as such. I then bought my family's share from them about ten years ago with the agreement of the other party, and we continued operating things with the other owner on a handshake as such.

    The other shareholder has now on-sold his share without my agreement (can he do this?), to a person who wants to make modifications to the premises; and also wants to draw up a shareholders agreement (shareholders agreement is a good thing).

    What are the rights of 50% shareholders? Do they have to agree on any decision for said decision to be implemented? What if they cannot reach an agreement?

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    Site Caretaker Dave A's Avatar
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    How exactly is the property owned?

    Specifically, does each partner's name appear on the title deed?
    The trouble with opportunity is it normally comes dressed up as work.

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    Quote Originally Posted by Dave A View Post
    How exactly is the property owned?

    Specifically, does each partner's name appear on the title deed?
    Hi DaveA, yes each partner is named on the title deed.

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    And it explicitly states that each partner is a 50% shareholder, but it doesn't mentioned the words "undivided share" or "divided share". It just states 50% share. There is no sole use clause or anything of that nature.

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    Site Caretaker Dave A's Avatar
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    What had me asking was it's probably critical to establish exactly which laws are applicable to your situation.

    Quote Originally Posted by Liz1 View Post
    And it explicitly states that each partner is a 50% shareholder, but it doesn't mentioned the words "undivided share" or "divided share". It just states 50% share. There is no sole use clause or anything of that nature.
    I take it the property is registered as a shareblock on the title deed then, but the ownership entity is an incorporated partnership?

    The one thought that occured when reading your first post was based on what you were saying, it seems any change in ownership would require a change in the title deed - which could give the non-selling partner some leverage perhaps.

    I'll say this - the buyer's desire to establish a shareholders' agreement is probably a very good idea.
    The trouble with opportunity is it normally comes dressed up as work.

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