Property can be a valuable asset and a profitable investment, but it’s not uncommon for ownership disputes to arise for both residential and commercial properties. In this guide, you’ll find everything you need to know about the most common property ownership disputes and how to resolve them.
Joint Ownership Disputes
Purchasing a property with a partner, sibling or friend can make property ownership more affordable, but there are pitfalls to joint ownership that you should be aware of, including:
Maintenance Obligations
Joint property owners may assume that each owner will take on an equal share of maintenance obligations, such as repairs. However, this can cause friction if one party does not contribute equally or if the property isn’t owned 50/50. In such cases, one party may feel that their maintenance obligation should be reduced in accordance with their ownership stake, while the other party may expect maintenance costs to be shared 50/50.
Leaving Your Share to a Loved One
If you’re a joint property owner, you may want to leave your share of the property to a loved one in your will. However, this will only be a viable option if you and the other owners are ‘tenants in common’. If you purchase a property as ‘joint tenants’, the surviving co-owner will automatically inherit the property, regardless of what the deceased co-owner’s will states.
Selling the Property
When one co-owner wants to sell the property but the other doesn’t, an obvious dispute will arise. This often happens when multiple people, such as siblings, inherit a property as joint owners and one or more of the owners want to sell immediately, while the others want to retain possession of the family home.
Joint Ownership Disputes: Solutions
Professionally drafted ownership agreements can help limit the risk of disputes arising and may set out a clear method of dispute resolution if disagreements do occur. While joint ownership may seem like a fast track to purchasing a property, it’s vital that all parties seek independent legal advice and fully understand their rights and obligations.
If a dispute does arise, however, there are various ways to achieve a resolution. First and foremost, remaining civil and cordial can be extremely helpful when it comes to successfully resolving a dispute while maintaining a relationship with your co-owner.
If co-owners cannot come to agreement, then Alternative Dispute Resolution (ADR) can be a cost-effective and efficient way to resolve the issue. With mediation, for example, the co-owners will benefit from a neutral third party helping them to come to an agreeable outcome.
When ADR isn’t an option or has failed to deliver a solution, the parties can take action via the courts. For joint owners, the Trusts of Land and Appointment of Trustees Act 1996 sets out the laws which will be applied by the courts to arrive at a judgment.
Unclear Title Deeds
Title deeds are one or more documents that prove property ownership, and any ambiguity in these documents can be the source of disagreements. In fact, there are numerous types of disputes that can arise due to unclear title deeds, including:
Ownership Disputes
If incorrect names are added to title deeds or if the deeds aren’t kept up-to-date, disputes surrounding ownership may occur. In a worst-case scenario, a co-owner may argue that you are not a genuine owner if your name is incorrectly spelt on the deeds or if information is missing.
Boundary Disputes
Title deeds should contain information regarding the property, including its boundaries. However, it’s not unusual for real-world boundaries to differ from what’s stated on the deeds. In some cases, property owners may assume they know where a boundary lies without consulting their deeds, which inevitably leads to disagreements. As one of the most common types of property disagreements, boundary disputes can cause significant distress to owners and, in some cases, are the subject of lengthy litigation.
Restrictive Covenants
A restrictive covenant is a legally binding agreement that limits how a specified piece of land can be used. These are sometimes included in title deeds and pass with the property, even if ownership changes. If the terms of a restrictive covenant are unclear, however, disputes can arise regarding what actions constitute a breach.
Unclear Title Deeds: Solutions
If you’re considering purchasing a property, working with a reputable conveyancing solicitor will help to highlight any ambiguity on the title deeds. Being aware of this will enable you to take swift action to remedy the issue, such as requesting up-to-date information from the Land Registry.
For existing owners who are in the midst of a title deed dispute, an experienced property lawyer can provide the tailored advice you need. Depending on the cause of the dispute, solutions may include:
- Interpreting complex clauses contained within the deeds
- Applying to the Land Registry to correct unclear information
- Advising on dispute resolution for co-owners and/or neighbours
- Litigating your case in the courts
Inheritance Issues
People often acquire property, or an interest in property, because they are left it in someone’s will. If a parent leaves an equal share of their property to each of their children, for example, the beneficiaries will become joint owners of the property.
However, inheritance issues give rise to an almost endless list of property disputes. If one beneficiary feels they’ve been treated unfairly, for example, they may try to dispute the will. Alternatively, beneficiaries may be satisfied with how the estate has been distributed but may disagree on what should happen to the property next.
Inheritance Issues: Solutions
Resolving inheritance issues depends on the specific cause of the dispute. If you feel you have not received what you should have in a will or that a will is not valid, for example, you may want to explore your options under ‘contentious probate’. If you were dependent on the deceased and believe you are entitled to a larger share of their estate, the Inheritance (Provision for Family and Dependants) Act 1975 may give you grounds for taking legal action, for example.
Alternatively, if the dispute concerns the property post-inheritance, then you may need to assess your rights and obligations under applicable property laws.
SIDE NOTE: This can be especially important when transferring property between relatives, as there are specific legal considerations and procedures involved. Our guide on transferring property ownership between family members provides further details.
The first step to resolving any dispute relating to inheritance issues is seeking professional legal advice. This will ensure you understand your rights under the applicable laws and enable you to determine what options are available to you.
Often, negotiating with the other parties involved is the most efficient and cost-effective way to resolve the dispute. When this isn’t possible, Alternative Dispute Resolution (ADR) can be the next best option. With mediation, conciliation or arbitration, you may be able to come to an acceptable resolution without resorting to litigation.
If necessary, however, your solicitor can help prepare your case for court and instruct a barrister on your behalf. By doing so, you’ll be ready to enforce your rights via the courts and may be able to secure a judgment that you feel is fair and equitable.
Property Disputes: Professional Legal Advice
For expert advice on property disputes or to discuss your rights in relation to a property, get in touch with our experienced team today and we’ll provide the tailored guidance you need. Call us now on 01276 680000 or send us a message here.
