What happens when you are in a co-ownership arrangement and your co-owner declares bankruptcy?

In the first instance, the trustee in bankruptcy will approach the other co-owners and provide them the chance to buy the bankrupt’s interest in the property.

If the co-owners are not in a position to purchase the bankrupt’s interest, the trustee will ask you if you wish to market the sale of the property together.

If you can’t come to an agreement, with the trustee and/or the other co-owners; the trustee will be forced to apply to a court, to have a ‘Statutory Trustee for Sale” appointed, over the bankrupt co-owner. As a result, the sale of the property will be processed through the legal system.

Suffice to say, it is vital that if you are considering entering into co-ownership, that you have a well prepared Agreement in place.

Want to learn more about Self Managing your own Investments and increasing your return?

Visit www.realrenta,com.au and use RealRenta for Free for up to 2 months and see how easy it is.

You will never pay a Property Manager again!