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.”
It demands more paperwork than a marriage. More spreadsheets than a small business. More honesty than most relationships can withstand.
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. 40/60 condominium
Conversely, the 60% owner may cover the $12,000 special assessment for a new roof. Under standard Tenancy in Common (TIC) rules, that 60% owner just increased their stake to 62%, because they paid 100% of the assessment. The 40% owner now owes the 60% owner a proportional debt—unless the agreement says otherwise.
But owning 40% of a two-bedroom in a rising market is not just arithmetic. It is a psychological contract. And if you don’t write it down, the numbers will eventually write a tragedy. Why 60/40? Why not 70/30 or 51/49? Partner B (the 40% owner) often argues: “I
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.
The successful 60/40 pairs create zones of absolute control. The 40% owner gets the primary bedroom. Or the parking spot. Or veto power over house guests. It is not about math. It is about dignity. More spreadsheets than a small business
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 .