Buying share in property - Price agreed but market value has risen since.

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CN624

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I've agreed a price to buy out the other 50% of a house of a house I co-own with a friend. We had the house valued and agreed on a price but in the few months since (solicitor problems on their part :() the price has increased and due to changed circumstances / views on the market I have now decided to sell.

Instead of buying the property from them and then selling it and incurring legal fees for both transactions I was thinking of just selling it (while still in both names) and giving them the original price agreed. Only problem is if they see it is selling for agreed price + x% it may get a bit 'difficult'.

Am I within my rights to do this?
 
CN624 said:
I was thinking of just selling it (while still in both names) and giving them the original price agreed. Only problem is if they see it is selling for agreed price + x% it may get a bit 'difficult'.

Am I within my rights to do this?
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I believe they are entitled to half the proceeds and i would advise you to be fair in the transaction as these things tend to come back to you.
 
have you an agreed written exit mechanism from your joint investment ???
 
CN624 said:
I've agreed a price to buy out the other 50% of a house of a house I co-own with a friend.
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How would you feel if the tables were turned? I'd suggest you play it fair and work on the premise that you'll be splitting the proceeds 50% unless you're working on the premise of taking an ex-friend to court.
 
Mary_K said:
How would you feel if the tables were turned? I'd suggest you play it fair and work on the premise that you'll be splitting the proceeds 50% unless you're working on the premise of taking an ex-friend to court.
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It'd be the friend that would be taking the OP to court and s/he'd have every right. The cheek of some people.
 
Are you seriously asking us if we agree with you screwing your friend out of what he is perfectly entitled to?
 
Not trying to screw him out of anything.

We agreed a price several months ago, I've made all mortgage payments and paid all bills since because he has left the city for a new job. We assumed it would have been sorted out long ago but his solicitor has held things up.

As far as he is concerned since we came to an agreement its mine to do with as I please.

It'd be the friend that would be taking the OP to court and s/he'd have every right. The cheek of some people.
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We came to an agreement that we shook hands on so if the house had fallen by 10% I wouldn't be rushing back to him to say I'm paying you less.
That would be cheek!
 
If you decide to sell it (as opposed to buying them out at an agreed price) I think it is fairly obvious (to me) that they should be entitled to 50% of the sale price. The goalposts have moved somewhat since you made the original agreement. Of course there is nothing stopping you from buying your friend out at the agreed price and then selling the property on at the higher market price.

The issue of mortgage repayments/bills should be tackled separately.
 
Of course there is nothing stopping you from buying your friend out at the agreed price and then selling the property on at the higher market price.
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Thats what I was originally thinking. Just the timeframes between buying & selling reduced by several years.
 
CCOVICH said:
Of course there is nothing stopping you from buying your friend out at the agreed price and then selling the property on at the higher market price.
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CN624 said:
Thats what I was originally thinking. Just the timeframes between buying & selling reduced by several years.
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But if the price had fallen from what was agreed would you think it fair for you to be out of pocket. My advice would be to act fair as you may gain some money but lose a friend.

Guess the following saying does play true sometimes. Borrow money to a friend; be prepared to lose both.
 
They have agreed on a certain price to sell from A to B. When B has 100% it is up to them what they do with it, at whatever price. There would be no point in agreeing a price otherwise, or they should have agreed 'I will sell at €XXXX whenever everything is in place for the sale to go through'.
 
Whatever the legalities ,just sell (as you are planning to anyway) and split the proceeds 50:50 ,the slight extra you'd get by taking the increase may be offset by increased legal fee's etc and you may lose a friend/business partner
 
bearishbull said:
Whatever the legalites ,just sell (as you are planning to anyway) and split the proceeds 50:50 ,the slight extra you'd get by taking the increase amy be offset by increased legal fee's etc.
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It's not clear if this is a PPR or an investment property but if it's the latter then don't forget to factor in the tax costs.
 
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