Shared ownership problem

altyfc

Person 'A' has inherited a property with a relative (person 'B'). B lives near the property, A doesn't.

It is rented out and has a tenant in it.

It needs a gas check done, and it ought really to have a fully electicity check, IMO.

A wants to do everything by the book, B wants to take control and save on what he/she thinks is unnecessary spending. Even if they could agree on these checks, it's likely that there would be similar events in the future where B tries to take control and makes it very difficult for A.

What can A do about this? The ideal situation as far as both A and B are concerned would be for B to buy A out. B is not in a position to do that, and unlikely to be in a position to do so in the near future. Even if something could be agreed where B bought A out by paying £x per month for however many months, it's highly likely that B might not make the payments religiously each month.

If A was to ignore B, and get all the checks done, it's likely that A would pay 100% of the bill, not 50%. And the same for any other things that might arise in the future.

Where does A stand if there was to be a fire or similar problem, as a result of there being no electricity check?

A wouldn't want to go down the route of solicitors letters, etc.

Advice welcomed... thanks.

PS - Sorry for all the As and Bs... it's very unlikely that this will be identified by the people in question but this is just a measure to ensure that still further.

altyfc

Sorry, one last detail... selling the property and A and B each taking 50% isn't an option. B wouldn't do this.

bionic_banjo

You need to find out how A & B 'own' the house. If they are 'joint tenants' on the title, then A or B can force a sale of the property without the others consent.(The money will be shared) If they are 'tenants in common' on the title, then in law, each of them own a 'section' of the property title and can sell that section on to a third party without having to force the other out.

Moving to income - I take if that A&B have an agreement about sharing the rent? Essentially what a lawyer would look for is to see if a 'constructive trust' exists. (Trusts & Property is a complicated area of law and all I can refer you to is the LLB Learning Text on trusts or Property by Blackstones Publishing - these books are about £20 each & set these things out so even Jade Goody could understand)
If a trust, or a 'cooperation' between A & B exists, then maybe they could consider opening a joint bank account and putting the rent in there. Then the outgoings can be spent from that account.
With regard to 'saving money' - well if A & B are declaring the rent for tax purposes - then any income spent on gas checks etc can be set off against tax. If they are not declaring the income for whatever reason, then they really should get the gas (annual) and electricity (5yearly) done by qualified professionals anyway - and keep the receipts. Because 1) if the tenant or his guests gets gassed or electrocuted A & B will be 100% liable for their injury or death & could lose their own houses/ businesses unless they have adequte insurance (that will probably stipulate that A&B get these checks done by professionals!) - or 2) the tax man will catch up with A & B and in that case its best to at least ensure they have some receipts that they can pass to a decent accountant to minimise the penalty.(Accountant costs can also be set off against tax.)

Family stuff can get really messy, but it is truly worth A & B trying to cooperate and get a joint bank account open. A & B must not skimp on Health and Safety matters. They must agree a timetable for the checks and inspections etc and stick to it. They must Work together - as if they fall out - it will be handed to solicitors - and then all that will be left of the wonderful inheritance is a few pounds after the lawyers have walked away with all the money. Seen it happen.

Good luck A&B!

Doozergirl

As far as Gas and Electric reprts are concerned. If you don't have a Gas Safety Report and, for example, the tenant dies from carbon monoxide poisoning, you will be arrested and likely charged with manslaughter.

If something happens to the tenant as a result of the electical installtion, you still have to prove due diligence, ie. you did everything you could to prevent it happening. That would mean checking the installation and appliances on a regular basis... You could still have criminally caused death or injury to the tenant even though a safety certificate is not required by law.

You should also be providing things like smoke alarms; nobody wants someone else's death on their conscience.

bionic_banjo

Correct Doozergirl. Even if you did all due dilligence on the electrics. If the tenant gets injured on the property, A & B are still liable as the landowners, under statute. Thats why you need insurance and you need to keep to the terms of that insurance or it will not pay out.