One or more tenants can buy other members to terminate the lease. If tenants develop conflicting interests or instructions for the use, improvement or sale of the property, they must agree together to move forward. In cases where there is no agreement, a partition action may take place. The divisional action may be voluntary or judicial, depending on the cooperation between the tenants. At the same time, the taxpayer and the new co-owner entered into the lease, they also signed an option contract. The option agreement would allow the taxpayer to sell his shares in the property at any time before the fifth anniversary (the „put“) of the option agreement to the new co-owner, including the sale of an ICT interest in the property. In addition, the new co-owner could acquire shares in the property from the seventh anniversary of the option agreement (the „Call“). The purchase price of the put or call would be based on the fair value plus an appropriate annual revaluation factor. The lease agreement, in accordance with applicable law, generally describes the effects of shared ownership on the taxes of a property. The contract defines the contractual distribution of tax debt between each owner.
While ICT owners are generally concerned with turning their property into condos once they are qualified, there are more and more incidents where an owner tries to delay the conversion for financial reasons. While this type of delay is contrary to the provisions of most ICT agreements, owners trying to move the transformation process forward have complained about the difficulty of implementing these provisions. Our next-generation ICT agreements allow any homeowner to pass on the process, even if another owner or owner tries to delay it, and to provide the tools to a single owner to take all necessary steps without hiring a lawyer or resorting to mediation or arbitration. Recognizing that a standard/forced sale procedure can have a negative effect on the building`s adaptation to processing, these instruments provide for the possibility of levying burdens on processing costs and borrowing money securely for these costs, and then launching a forced sale immediately after the conversion.