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Resolving family property disputes
Family disputes over property can occur in situations where a property is inherited or purchased together with a relative or can arise due to a pre-existing joint ownership property arrangement. If you’re unable to reach an agreement about a dispute, then having the assistance of a professional mediator in order to avoid going to court is invaluable.
In this guide, we explain what commonly causes family property disputes, how to resolve them without going to court, and who can help you in resolving a dispute.
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What are the common causes of family disputes over property?
Common causes of property disputes within the family include issues surrounding the division of inherited property, problems with property purchased together with a relative and conflicts over joint tenancy ownership. If you’ve inherited a share of a property, this can create the potential for conflict. People sometimes have conflicting views on what should be done with an asset. One person may want to live in the property, another may want to rent it out or develop it, and another person may want to sell the property.
Disputes over inherited property
Achieving an outcome that all beneficiaries perceive as fair can be problematic. Sometimes it is not possible to divide an asset or assets equally. Should the deceased have died intestate (not leaving a will) the estate will be divided in accordance with the laws of succession in England and Wales.
Disputes involving property purchased with a family member
There are many reasons why people purchase property together with a family member. These include pooling money to enable a larger real estate investment purchase to be made or to share the purchase and maintenance of a holiday property that one person alone could not afford alone. Some individuals choose to share ownership and occupation of their main domestic residence.
Joint ownership disputes
The two types of co-ownership are joint tenancy and tenants-in-common. If co-owners have a joint tenancy, then each is viewed as owning the entire property, and if one dies, then their half of the property is inherited by the other owner. Under a tenants-in-common arrangement, co-owners can hold equal or unequal shares in a property, the portion of the property each person owns is defined at the point of purchase.
With joint tenancy, relating to ownership of land, the same principle applies and on the death of one party, their interest automatically passes to the other owner, without the need of probate. Joint ownership often leads to disputes as there can be misunderstandings about the terms of the agreement. For instance, one participant may feel as though they have the right to own the property alone if they contributed a more substantial financial amount in order to facilitate the purchase.
Handling family property disputes
Nobody wants personal disputes played out in a courtroom if it can be avoided, not only is it uncomfortable but it can also be expensive and time-consuming. Employing alternative dispute resolution (ADR) to avoid this not only allows the matter to be dealt with privately, but it also provides a calm atmosphere to enable a solution to be reached.
Impartial mediators engage all participants in a discussion to develop a solution and achieve a mutually beneficial outcome. Arbitration is another method of ADR and involves parties appointing a suitably qualified arbitrator to adjudicate the dispute. The arbitrator will hear both sides of a dispute before coming to a legally binding decision. Please click on the link to learn about Giambrone’s arbitration services here.
Giambrone & Partner's aim is to assist the parties to reach a decision without recourse to court, where at all possible and where everyone is in agreement having reached a resolution they all can accept. Giambrone & Partner's real estate team can help resolve family property disputes speedily and cost-effectively. If you need assistance in resolving a family property dispute, request a callback today.
How the court handles property ownership disputes
In cases where families cannot come to an agreement by means of alternative dispute resolution, going to court may be inevitable. Several factors may have been considered originally when shares of property were apportioned; the court will examine the terms of the original agreement and look into anything that has changed.
The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) governs what the court examines when deciding how to divide the property. It states that the interests of the mortgage company should be taken into account along with factors such as whether children are in residence at the property.
Frequently asked questions
What is the best way to manage the inheritance of property?
A will that stipulates the assets and percentages that all heirs will receive clarifies the situation legally and unless challenged avoids disputes.
You can read more about resolving property inheritance disputes here.
What happens in family dispute resolution?
In family dispute resolution, a mediator will help parties reach an outcome all parties agree on. The mediator will act as a neutral conduit between parties, negotiating on their behalf until an acceptable conclusion is reached.
How to divide personal items between family members
It is best to be very clear in your will how you wish your personal items to be divided, enabling the beneficiaries to be fully aware of the items they will and will not inherit.
Related content
Solving a joint property ownership dispute
Solving property inheritance disputes