Example: You sell the condo for a $300,000 profit. The 60% owner’s share of the gain is $180,000. They exclude it entirely. The 40% owner’s share is $120,000. They also exclude it. Everyone’s happy.
Legally, sweat equity rarely counts unless you draft a that values labor at a billable rate. Without that clause, the 40% owner is just a tenant who happens to have a deed.
J. Hartwell is a real estate journalist and recovering co-owner of a 35/65 duplex. He got the 35. He does not recommend it.
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 .
Partner B (the 40% owner) often argues: “I may own less, but I painted the walls. I fixed the leaky faucet. I waited for the plumber.”
Condominium - 40/60
Example: You sell the condo for a $300,000 profit. The 60% owner’s share of the gain is $180,000. They exclude it entirely. The 40% owner’s share is $120,000. They also exclude it. Everyone’s happy.
Legally, sweat equity rarely counts unless you draft a that values labor at a billable rate. Without that clause, the 40% owner is just a tenant who happens to have a deed. 40/60 condominium
J. Hartwell is a real estate journalist and recovering co-owner of a 35/65 duplex. He got the 35. He does not recommend it. Example: You sell the condo for a $300,000 profit
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 . The 40% owner’s share is $120,000
Partner B (the 40% owner) often argues: “I may own less, but I painted the walls. I fixed the leaky faucet. I waited for the plumber.”
