It is certainly possible to buy and sell real estate with multiple owners. That said, it can create significant complications. It may increase the odds that there is a dispute.
There are two main ways that multiple owners will be listed, the first of which is called joint tenancy. Under this arrangement, the ownership shares are equal, such as three owners who all own exactly a third of the property. The other option is tenancy in common. This can be equal, but it is also possible for unequal shares to be owned, such as two owners holding 40% and the third owner only holding 20%.
Why this makes the process more difficult
One reason why this can lead to disputes and make things more difficult is if all of the owners aren’t in agreement. If one owner wants to sell and the other two want to keep the property, it may be possible under certain arrangements for that person to sell only their ownership share. But it may also be that the three people need to agree on the sale—especially if the new owner expects to purchase 100% of the property. Getting everyone on the same page is necessary, and it’s often impossible for one person to sell the property without input from the others.
It can also lead to complications when it comes to ownership percentages that the sellers hold and what this means for the distribution of earnings. For instance, if one person assumes that they own 50% of a property, but it is actually a tenancy in common set up where they own just 30%, it can lead to disputes during or after the sale.
Again, this doesn’t mean that transactions aren’t possible, but just that they can run into significant complications, and it’s important for all parties involved to know what steps to take to resolve these disputes.