If the 60% owner paid 100% of $18,000 in mortgage payments, they have bought an additional 3.6% of the equity (assuming a $500k value). The split is now 63.6/36.4. But does the deed change? No. That requires a re-recording . Most people never do it. They just stew in resentment. Chapter Four: The Co-Ownership Agreement – Your 10-Page Bible If you own a 40/60 condo without a signed, notarized, lawyer-reviewed Co-Ownership Agreement, you are not an owner. You are a hostage.
Just remember: Love writes the check. Math cashes it. And the 40/60 condo is math, down to the very last penny. 40/60 condominium
Conversely, the 60% owner must never be made to feel like an ATM. The moment the 40% owner says, “Well, you own more, so you pay for the new couch,” the partnership fractures. Ownership percentage is not a credit card limit. The 40/60 condominium is not broken. It is not unfair. It is simply high-maintenance . If the 60% owner paid 100% of $18,000
By J. Hartwell
But here is the kicker: Under Section 121, a married couple can exclude $500,000 in gains. Unmarried co-owners? Each gets only $250,000 of exclusion on their share of the gain. They just stew in resentment
A forced buy-sell mechanism. Also known as a "shotgun clause." Either owner can offer to buy the other’s share at a specific price. The other owner must either buy at that price or sell at that price. It’s brutal, but it breaks deadlock. 2. The Death Partner A (60% owner) dies. Their heir—a bitter sibling from another state—now owns 60% of the condo. Partner B (40% owner) wakes up one morning with a stranger as a co-owner.
If the 60% owner pays 100% of the mortgage interest, they deduct 100% of the interest on their taxes. The 40% owner deducts nothing—unless they are actually paying 40% of the payments.