A woman is looking for the best way to dissolve a fixed property, which she shares with her former boyfriend.
It seems no agreement was formalised in respect to the administration of the property. However, they have reached an agreement as to possible ways forward.
The options proposed are either the sale of the fixed property or the reader purchasing the other half share therein.
The former boyfriend has since married a third party and seems to have no interest in owning the property himself.
See the reader’s question here.
When considering a sale, it is possible that the ex can sell his undivided half share in the property to a third party.
This would possibly make our reader’s continued half ownership quite difficult, as the other half owner may not be familiar to her.
It is not clear what the current arrangements in terms of the property are, for example, whether the reader is staying in the property, renting it out or if it is vacant.
Should she wish to proceed with the purchase, whether for herself or as an investment, it would be ideal if she bought the other half rather than a third party.
Selling the entire property is also an option.
This would entail the property being put up for sale and both parties then agreeing to an offer. Upon agreement as to a price and terms acceptable to them, the joint owners would then sell the property to a third party.
In this event they should consider the potential for capital gains tax.
The sellers can consult an expert to assess this and any other possible financial implications of the transaction.
If the reader purchased the half share the transfer duty and fees would be determined based on the value of the property.
An estate agent or conveyancing attorney could assist her with the calculation.
The transaction would comprise an offer made by her to her ex for the purchase of his half share at a specified purchase price and subject to certain conditions.
One condition that immediately springs to mind is that she must qualify for a mortgage bond to fund the purchase.
The reader would have to approach the bank with a copy of the agreement of sale to discuss whether she would qualify for a bond.
Although we are not advised of the current status, it is possible that any existing bond may be cancelled to register a new bond with the reader as the party solely indebted to the bank.
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