My father owned a townhouse with his girlfriend (he was 81, she’s 82). He passed away about a month ago. The two of them owned the townhouse as tenants in common, each with a life estate. (Which makes partitioning the property difficult as I think she’d have the defense of the life estate). His girlfriend just advised me that she does not plan on buying us out, which means having to wait until she dies before I can recoup my father’s investment.
However, as a 50 percent owner now, I’m wondering if an investor might be interested in purchasing my fractional interest in the property. For the sake of argument, let’s assume the property is worth what they originally paid for it ($240k, so my interest is $120k). I’m wondering if there are investors who would take the risk that the property would increase in value and purchase my share today at a discount.
The townhouse is located in a nice gated community in Palm Beach County, Florida.
Where exactly in Palm Beach County? Feel free to PM me the details.
Does the girlfriend live in the townhouse ? Will she be paying rent ?
These will have an impact but if the property is worth $240k you will not get 50% for fractional ownership. The reason being these typically do not end well because in most instances the two owners cannot come to an agreement.
In this situation if she is living in the property then what will she be paying to the other owner ? More than likely it will take an attorney to get involved and figure out what is being paid.
There typically are lots of headaches in these situations and those headaches will come at a cost unfortunately. I would recommend trying to buy out the other party before selling
Thanks for the reply. She owns the other 50% so she's not paying rent or anything like that. She has a life estate in the property so she can live there till she dies or decides to sell or buy me out. I made her an offer and thought she was going to buy me out but she apparently changed her mind. So, since I just want out, my thought was that someone might want to buy my interest at a discount and they would just hold it until she dies. At that point the investor and her kids would sell and split the proceeds as they would with me. I just dont want to wait till then to get my money out.
agree with other posters that it could get messy but “Each TIC may transfer or encumber their property interest without the consent of the other TIC”. So while I wouldn’t exert an unwholesome deal on an 83 year old; like moving in a unhygienic,unemployed drummer as her roommate, I also would expect some recompense for my ownership interest.
Obvious you need to talk to a knowledgeable lawyer.