When two or more parties share ownership of property, a dispute is inevitable. Whether the dispute is minor or major, and the ultimate outcome of it, will depend on varying factors. However, with the right legal counsel, you can potentially preclude such issues to begin with or resolve them to the mutual agreement of everyone involved.
Nobody should enter into shared property ownership lightly and without the assistance of an attorney. For all matters related to ownership disputes in Manhattan, turn to the litigation team at Levy Goldenberg LLP.
The Importance of an Ownership Agreement
Before agreeing to share ownership rights with other persons or businesses, regardless of whether the property is commercial or residential, you should consult an attorney. Owning property is a serious financial investment that, if done improperly, could cost you money and legal fees.
An attorney can assist you and your co-owners by drafting an ownership agreement which clearly defines the rights and obligations of everyone. Perhaps most importantly, this contract can stipulate how disputes are to be handled. Most Manhattan property disagreements can be resolved informally, but your contract should specify more formal ways of addressing issues (e.g. through mediation).
Additionally, an agreement can allow one or more owners a way to escape their ownership of the property if a dispute becomes extensive. For instance, it can include buy-out terms whereby the remaining co-owners compensate the departing co-owner for their interest in the property. Terms like these can avert most problems or at least provide a viable exit strategy if the co-owners cannot successfully resolve their disagreements.
What If We Have a Dispute?
Although a co-ownership agreement makes a dispute less likely, it doesn’t totally eliminate the possibility of one. And in the absence of such a contract altogether, the chances of having problems increase significantly. These are a few possible ways to address such matters:
Negotiation
You and the other parties may informally negotiate a way to resolve your disagreement. Perhaps the dispute centers around how to use the property, whether to sell it, or even whether to allow another owner to buy into it. Regardless, the parties can usually negotiate a resolution on their own.
However, if you are able to resolve the matter, you should reduce it to a written agreement. Consulting a Manhattan real estate attorney can help ensure the agreement is drafted in a way that protects everyone’s rights and interests so you can move forward.
Mediation
The next step up in your negotiations is the more formal process of mediation. During this process, a neutral third party will help mediate the dispute between or among the co-owners and try to help them reach a settlement agreement. If you have an ownership agreement, mediation may be required before anyone can initiate legal action.
Mediators cannot force anyone to come to an agreement, but they can help them better understand the benefits of settlement versus the risks of legal action. You can and should have an attorney present during mediation to help you propose settlement terms and understand the legal consequences of any agreement before you sign it.
Litigation
If negotiation and mediation break down or are simply impractical, then you may need to file a lawsuit. You should retain the assistance of a Manhattan real estate litigation lawyer if you either need to sue the other co-owners or they sue you. Even after a lawsuit is filed, however, it will remain possible to settle the issue and avoid trial.
But if a trial is inevitable, then your attorney will present the evidence and arguments in your favor in court. The judge could partition the property, force a sale, or devise some other solution, depending on the underlying dispute. The order will then become enforceable.
Your Trusted Legal Ally in Co-Ownership Issues
Levy Goldenberg LLP helps owners with the challenges of sharing property by drafting effective and enforceable co-ownership agreements, negotiating and mediating disputes, and taking such matters to court if necessary. Reach out to our Manhattan real estate litigation team today to learn more.