Laguna Hills, CA asked in Real Estate Law for California

Q: Does a majority owner of a property need permission from a minority owner(s) to sell the property?

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2 Lawyer Answers
George W. Wolff
PREMIUM
Answered

A: All persons who are listed on the title as owners or grantees must agree to the sale, unless you file a partition action in Court to allow the sale without consent of the other owners.

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A: The majority owner can not obligate the minority owner(s) to sell the property if the owner's are listed on the deed individually (i.e. the property is not owned by an entity such as an LLC, Corp., LP, etc.). Should the majority owner enter into a Purchase & Sale Agreement regarding the entire property to a prospective purchaser then the majority owner would be contractually obligated to obtain the minority owner's consent (which they can withhold).

Practically speaking, you should obtain an agreement in advance of putting the property on the market and/or entering into a Purchase and Sale Agreement to avoid being unable to perform when it comes time to close the sale; preferably , the majority owner and the minority owner(s) would enter into a listing agreement jointly, and/or a Purchase & Sale Agreement, with the majority owner as "Sellers" to obligate everyone to perform at the time of close.

Alternatively, if the property is owned by and through an entity then the ability of the majority entity owner is dependent on the operating agreement, partnership agreement and/or bylaws of the specific entity.

If the minority owner is not willing to sell the property then you may have to consider a partition action to force the sale of the property by court order.

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