Architect · Santa Monica, CA · Member since 2015 · 45 posts · 15 votes
I found a great house for sale listed as a probate sale but only offering an undivided 50% interest in the property. The other undivided 50% interest is NOT offered for Sale. No financing contingencies.
What exactly is being offered here and what type of buyer would be interested?
There is a limited market for a piece of a property because few cash buyers want to tie their capital up in such a property.
A homeowner (buyer/user) has so many other choices and would be legally required to "share" possession with a stranger. Obviously, that's not practical.
From an investor point of view, cash buyer would tie up capital for an extended period of time while they deal with their 'involuntary partner' co-owner. To me, the obvious exit plan is to put pressure in the co-owner to buy you out by making co-ownership untenable. Since they are like not flush with cash to buy you out, you'd need to be prepared for a long wait convincing the city-owner to qualify for and obtain conventional cash-out financing to buy you out at a profit or you would accept a note and TD (internal seller financing).
We're you to become the co-owner, you could post a new thread about how to force a partition action.
Investor · Portland, OR · Member since 2014 · 174 posts · 64 votes
11y
In common terms, they are selling "one-half" of a house; the technical title is "50% interest, as tenants in common". In most cases, if the buyer is not a family member or spouse, he would file a suit for partition, wherein the court forces the property to be sold, and the proceeds divided 50/50. The ideal buyer, other than a family member, is an experienced, aggressive investor. Given the opportunity, with the right house, at the right price, this is how I would do it.