Condominium | 40/60

If the 60% owner paid 100% of $18,000 in mortgage payments, they have bought an additional 3.6% of the equity (assuming a $500k value). The split is now 63.6/36.4. But does the deed change? No. That requires a re-recording . Most people never do it. They just stew in resentment. Chapter Four: The Co-Ownership Agreement – Your 10-Page Bible If you own a 40/60 condo without a signed, notarized, lawyer-reviewed Co-Ownership Agreement, you are not an owner. You are a hostage.

The 40% owner cannot force a sale in most TIC jurisdictions unless the co-ownership agreement includes a partition clause . Without it, the 40% owner is stuck owning a phantom asset they can’t live in and can’t sell. 40/60 condominium

A forced buy-sell mechanism. Also known as a "shotgun clause." Either owner can offer to buy the other’s share at a specific price. The other owner must either buy at that price or sell at that price. It’s brutal, but it breaks deadlock. 2. The Death Partner A (60% owner) dies. Their heir—a bitter sibling from another state—now owns 60% of the condo. Partner B (40% owner) wakes up one morning with a stranger as a co-owner. If the 60% owner paid 100% of $18,000

A cross-purchase life insurance policy. The 40% owner insures the 60% owner’s life. Upon death, the insurance payout buys the 60% share from the estate. The condo becomes 100% owned by the survivor. It costs money. It is worth every penny. 3. The Default The 40% owner loses their job and stops paying the mortgage. The 60% owner covers the full payment for six months. They just stew in resentment

Example: You sell the condo for a $300,000 profit. The 60% owner’s share of the gain is $180,000. They exclude it entirely. The 40% owner’s share is $120,000. They also exclude it. Everyone’s happy.