40/60 Condominium May 2026

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.

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.

The 40% owner cannot force a sale in most TIC jurisdictions unless the co-ownership agreement includes a partition clause . Without it, the 40% owner is stuck owning a phantom asset they can’t live in and can’t sell. 40/60 condominium

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.

Just remember: Love writes the check. Math cashes it. And the 40/60 condo is math, down to the very last penny. He does not recommend it

In the world of real estate, symmetry is rare. We are taught to chase the 50/50 partnership—the perfect marriage of equals. But walk into any attorney’s office or family mediation table, and you will find a different reality. You will find the .

In a 40/60 condo, every single dollar spent on capital improvements must be tracked in a shared spreadsheet. If it isn’t logged, it’s a gift. Chapter Three: The Three Ways to Die (And How to Resuscitate) 1. The Breakup Unmarried couples love 60/40 splits. Then they stop loving each other. Suddenly, the 60% owner wants to stay; the 40% owner wants cash out. The 40% owner cannot force a sale in

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.