Just wondering if anyone has knowledge into purple titles? I've been roped into a property with one and I'm looking into advice as to how I can get out of it. Long story short, numerous owners doing their own thing without consultation - there's a bit of underhandedness going on which I think is illegal. Any feedback would be appriciated.
I "think" its along the lines of a group of smallish houses built on one defined plot of land, no-one has sole ownership for the land itself as its jointly owned by those who own the houses (or units) on the property
Purple Title - Tenants in CommonThe land is held as Tenants in Common, the shares being in the same number as the units. Separate Title may be issued for each unit. Because of the "unity of possession" the land cannot be divided or partitioned. The sketch and lot number is for the whole of the land in the plan or diagram. The Certificate of Title states the number of undivided shares contained and the sketch of the land used to be shaded purple - thus "purple title".
You are correct Stephan. In this particular instance it is pertaining to a commercial property with two separate builings on the parcel of land. One of the 'owners' has decided to 'claim' one of the buildings as his own and has rented it out claiming the entitlements for himself. As far as I am aware, he would need to get approval from all parties and split the income proportionally. The thing is that I would like to get out of this purple arrangement and move on but am bound by the other parties. It seems to be all in or nothing happens.
Didn't you look into this before buying in? I deal with planning (although never heard of a 'purple title' until now), but sounds similar to strata with the owners being in a body corp, but equalising shares of all the lots on the property?
Strange setup - I'd assume that if the property requires divvying up any profits then you're correct re; sharing the rental, but this would also mean divvying up expenses? Sounds messy. Regardless, you should be able to sell your 'share'?
The property is an inheritance to my wife from her father. Originally purchased with others in the 70's. It its difficult to sell off to an outside party as a bank will not give a loan if they can't get thier hands on an undivided portion should there be a default on the loan. The other owners don't want to buy us out or do anything at this stage, however are doing deals on the side by leasing out one of the buildings and taking the profit. I found this out by doing a drive by and a bit of research through the net. I don't think the current tenant is aware of this arrangement. As for expenses, all out goings are paid for by the tenants (execpt for council rates).
Best advice would be to see your solicitor. There may have been shenanigans going on for a while that you've missed out on. Also a conveyancer or land surveyor - they should have a good insight into exactly how it all works, but as you said, banks want security and control over that security. Good luck with it.
Thanks. I've just been looking at the Dept of Commerce and there's some interesting reading to be found. In the mean time, please keep the ideas flowing.
You would have liked my house before we renovated. Built in the 70's. Purple tiles, toilet,bath, basins, The lot. Missus hated it and thinks I dumped it. I thought it was cool so I stashed it under the house.
self-help is the best remedy. discuss it with the other parties before you involve solicitors- you might find them willing to negotiate.
as for legal remedies, it probably depends on the nature and form of the agreement between the parties. and even if it's an informal agreement or an unregistered interest you may have at least an equitable right to claim a share of the income, if not a more solid common law right.
Thanks Stamp. I've approached them several times and they're not willing to budge. I guess they don't like the new kid on the block encroatching on their territory. The advantage I have is that I'm 20yrs younger than they are, so time is on my side however, I'm of the impression that they will not move on anything until they're 6ft under.
