Selling
When partners split up
Partnerships end for all kinds of reasons. The property doesn’t care, but the process does. Facts, a fair value and a clear path keep it from getting worse. Check who has authority to sign, get an independent value, and look at a buyout before a full sale.
Seller representation
What a partnership breakup sale involves
A plain explainer if you’re new to this.
- What it is
Co-owners who want out
Partners who own a property together want to end the arrangement, often because their plans have changed.
- How it works
Buyout or sale
One partner can buy out the other, or the property can be sold and the money split. Your partnership or co-ownership agreement often sets the rules.
- If you can’t agree
The courts
In BC, co-owners can apply to court under the Partition of Property Act for an order to sell.
- What I do
A fair value both sides trust
I give a clear value, then handle a buyout or an open sale with the same information to both partners.
Your options
- One partner buys the other out, usually at a price based on an independent appraisal.
- Use the agreement. Many shareholder or partnership agreements have a buy-sell or shotgun clause.
- Sell to a third party and split the proceeds.
Check authority first
Who is on title? Who can sign for the company? Get this from title and the corporate records before anyone talks to buyers.
Keep it factual
Emotion drives timelines in a breakup. I keep communication in writing and in plain numbers, and each partner should have their own lawyer.
How I help
I give an opinion of value from the market, run a sale if that’s the choice, and keep everyone informed at the same time.
Questions people ask
How do we value the property in a buyout?
Usually with an independent appraisal. A broker’s opinion of value can help you decide whether a buyout or a sale makes more sense.
What if one partner won’t sell?
Look at your agreement first. If it doesn’t help, talk to a lawyer about your options.
Go deeper
If you’re looking for more details
Before you start
- Title and corporate records: who owns what
- Your partnership or shareholder agreement
- An independent appraisal
- Each partner’s lawyer
What should I gather, ask and watch for?
Documents to gather
- Title and property tax notices
- Leases and operating statements
- Mortgage statement and terms, including prepayment penalties
- Wills, partnership or shareholder agreements, if they apply
Questions to ask
- What is the property worth today, roughly?
- What tax does a sale trigger, and can timing help? (ask your accountant)
- What does it cost to break the mortgage?
- Who has to sign, and do they all agree?
Common mistakes
- Waiting until you have to sell
- Making the decision without tax advice
- Not checking who has authority to sign
- Underpricing to sell fast without testing the market
Typical timeline
- NowValue range and tax advice
- Months 1 to 3Decide and prepare
- Marketing to offerOften 1 to 3 months
- Completion30 to 90 days after conditions
Typical ranges. Your lease, lender and the City set the real dates.
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Next step
Partners going separate ways?
Tell me what you own and who’s involved. I’ll keep it confidential.