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.
The successful 60/40 pairs create zones of absolute control. The 40% owner gets the primary bedroom. Or the parking spot. Or veto power over house guests. It is not about math. It is about dignity. 40/60 condominium
Just remember: Love writes the check. Math cashes it. And the 40/60 condo is math, down to the very last penny. The 40% owner cannot force a sale in
But owning 40% of a two-bedroom in a rising market is not just arithmetic. It is a psychological contract. And if you don’t write it down, the numbers will eventually write a tragedy. Why 60/40? Why not 70/30 or 51/49? The 40% owner gets the primary bedroom
But here is the kicker: Under Section 121, a married couple can exclude $500,000 in gains. Unmarried co-owners? Each gets only $250,000 of exclusion on their share of the gain.
Partner B (the 40% owner) often argues: “I may own less, but I painted the walls. I fixed the leaky faucet. I waited for the plumber.”