What if I want to sell my share?

A home is one of the most significant investments you’ll ever make. At Joynt, we believe that co-ownership should not only make property ownership more accessible but also provide a secure and flexible investment. A common and important question we hear is: "What happens if my circumstances change and I want to sell my share?"

We understand that life is unpredictable. That's why your Joynt Operating Agreement is designed with a clear, fair, and legally sound process for selling your ownership interest. It protects your right to exit the partnership and recover the value of your investment, while also respecting the rights of your co-owners.

While the process may take longer than selling a home you own by yourself, the rules are transparent and there is always a path forward. Here is a step-by-step guide to how it works.

Step 1: Offer Your Share to Your Co-Owners (Right of First Refusal)

Your co-owners are your partners in the property. It’s only fair that they get the first opportunity to buy your share before it’s offered to a stranger. This is a standard and essential right in co-ownership known as the “Right of First Refusal.”

Here’s the process:

1. Find a Buyer: You market your share and secure a legitimate purchase offer from an outside party.
2. Notify Your Co-owners: You must submit this offer to your co-owners through the Joynt portal.
3. Co-owner Decision Period: Your co-owners then have 30 days to decide if they want to purchase your share for the exact same price and on the same terms as the offer you received.
   • If only one co-owner decides to buy, they become the purchaser.
   • If multiple co-owners want to buy, they have an additional 15 days to agree on a plan to purchase your entire share collectively. If they can’t agree, you, the seller, can choose a single buyer from among them.
4. Complete the Sale: Once a buyer is identified, they are legally obligated to complete the purchase within a set timeframe.

This first step ensures that the existing ownership group has priority and can maintain the integrity of their group if they choose to.

(This process is detailed in Section 4.3 of your Joynt Operating Agreement.)

Step 2: Sell Your Share on the Open Market

If none of your co-owners exercise their Right of First Refusal within the 30-day window, you are free to proceed with selling your share to the outside buyer you found.

However, a new co-owner directly impacts the rest of the group. To protect the remaining owners’ financial security and the stability of the property partnership, the prospective new owner must be approved.

1. Financial Vetting: You will need to provide your co-owners with the prospective buyer's financial qualifications (such as a loan application and credit report).
2. Right of Rejection: The other owners have 30 days to review this information. The transfer can be rejected only if members holding at least 25% of the total ownership vote to reject it and provide a reasonable basis for the rejection. This prevents any single owner from blocking a sale arbitrarily while protecting the group from a financially unqualified or otherwise unsuitable partner.
3. Finalizing the Transfer: Once approved, the new buyer must formally agree to the terms of the Operating Agreement and pay any associated transfer taxes or fees.

This step balances your right to sell with your co-owners' right to have a responsible and reliable partner.

(This process is detailed in Sections 4.1, 4.2, and 4.4 of your Joynt Operating Agreement.)

Step 3: The Safety Net - Compelling a Sale of the Entire Property

What if you can’t find a buyer for your individual share? This can sometimes happen, as the market for partial ownership can be smaller than for a whole property. Your Joynt agreement includes a crucial safety net to ensure you can always access the value of your investment.

If you have made a diligent and sustained effort to sell your share for at least one continuous year at a fair market price but have been unsuccessful, you have the right to trigger a sale of the entire property.

1. Triggering the Sale: You officially notify the group through the Joynt portal of your intent to sell the property.
2. Determining Fair Market Value: To ensure a fair price, a formal valuation is conducted. Four comparative market analyses are obtained from qualified local real estate agents. The highest and lowest are discarded, and the middle two are averaged to set a binding Fair Market Value.
3. A Final Buyout Opportunity: The other co-owners are given one last chance to prevent the sale by purchasing your share at a price based on this new Fair Market Value.
4. Selling the Property: If a buyout doesn’t happen within 90 days, the property is listed on the open market with a qualified real estate agent. If the home doesn't sell within the initial listing period (60 days by default), the price is systematically reduced by 5% in each subsequent listing period until a buyer is found.
5. Distribution of Proceeds: Once the property is sold, the proceeds are used to pay off any mortgage, closing costs, and other company debts. The remaining funds are then distributed to all owners according to their percentage interest.

This powerful provision ensures that there is always a defined path to liquidity, giving you the ultimate reassurance that your investment is not locked up indefinitely.

(This process is detailed in Sections 5.1, 5.2, and 5.3 of your Joynt Operating Agreement.)

Your Investment, Protected

At Joynt, we believe co-ownership thrives on clarity and trust. The exit strategy laid out in your Operating Agreement is designed to be robust and equitable for everyone. It protects the seller's right to move on, the remaining owners' right to a stable partnership, and every owner's financial investment in the property.