While holding property as a tenancy in common has many financial advantages, it also can be complicated. Each tenant in common has the legal right to sell his or her share of the property unless they have entered into a legal contract otherwise. Because they don't own the entire property, one tenant in common can't sell the entire piece of land or a home without permission from all of the co-owners. If, however, all of the co-owners agree, the property can go on the market and get sold. If the property sells for a profit, each tenant in common walks away with a share of the money equal to his ownership share in the property. Any tenant in common can force a sale by filing a partition action seeking a physical division of a property (where that is feasible) or a sale, where a division isn't viable or fair. This type of action can be expensive to all since all owners are liable to pay a share of the court costs and attorney fees involved. If a property is only a single structure, like an apartment building, it usually cannot be equitably divided among the owners. That means that the entire property must be sold and the proceeds distributed according to percentage ownership. It is often a less expensive option for all parties to agree to sell the building than to pay for a partition action when the result is likely the same.
Forcing a Partition Action
In some states, including California, tenants in common can force a sale or property division. If your brother wants to sell property that you own half of, and he can't convince you to sell or get a friend to buy his share, he can instead turn to the courts. When possible, the courts can rule to force a partition action to physically split the property. If you and your brother hold an equal share in 20 acres of farmland, the court can split the property in half, leaving each of you with 10 acres of land. After the split, you're no longer tenants in common or co-owners, leaving you each free to do whatever you like with your 10 acres.
Sometimes splitting a property isn't possible, however. If you and your brother own a house or single building together, cutting it in half would render it worthless. Since there is no way to realistically split the property, the court could force you to sell it, even though you don't want to. After the sale, net proceeds would be distributed according to percentage ownership.
Different Options to Consider
Tenants in Common Agreement - The co-owners can execute a special agreement which specifies the terms of how the property will be treated including how it will be sold, etc.
Buy Out - An owner’s share can be sold to someone or bought out by the other co-owners of the property
Court Partition Action - The court will enforce the split or mandatory sale of the property. This option will ultimately solve the issue but should be avoided unless absolutely required