Disagreements can happen in any co-ownership. One owner may question an expense, object to how a decision was made, believe another owner has broken an agreed-upon rule, or feel that a proposed solution is unfair.
Joynt gives your group a written Operating Agreement, defined voting rules, documented notices, and an established process to follow when disagreements arise. This can reduce uncertainty, help everyone understand what was agreed to, and make it easier to pursue a resolution outside of court when appropriate.
Joynt provides the structure and tools that support this process. Joynt does not act as the owners’ attorney, mediator, judge, or arbitrator and does not decide who is legally right in a contested dispute.
Many disagreements begin with unclear expectations.
Co-ownership can become difficult when important expectations were never discussed or decisions were made informally.
The Joynt Operating Agreement establishes rules covering matters such as:
- How expenses and income are allocated
- How much each owner may use the property
- Which decisions require majority, supermajority, or unanimous approval
- How budgets, assessments, repairs, rentals, and improvements are handled
- What owners may and may not do without approval
- How an owner may sell or transfer their share
- What happens when an owner does not meet their obligations
Owners can enjoy their property and their relationships knowing the rules are already established in their signed Operating Agreement.
Decisions are made through a defined voting process.
Except where the Operating Agreement provides otherwise, owner decisions are made using Joynt’s voting system. The group’s Management Coordinator or any owner may bring a matter to a vote.
The agreement also defines:
- How each ownership interest’s voting power is calculated
- Which decisions require majority, supermajority, or unanimous approval
- The minimum voting participation required for a decision
- How missed, ambiguous, conditional, or split votes are treated
This gives the group a consistent process for proposing and approving decisions.
From the Joynt Operating Agreement
“Except as otherwise provided in this Agreement, all Member decisions shall be made using the voting system provided and administered pursuant to the Joynt Service Agreement. The Management Coordinator or any Member may solicit a Member vote on any matter using such system.”
Joynt provides a shared place for votes, notices, responses, and other information used in the agreement’s processes. This can help the owners understand what was proposed, how the group responded, and what action was approved.
What happens if a vote is tied?
If a decision requiring majority approval receives equal voting power for and against it, the owners must first determine whether the Operating Agreement already requires a particular course of action.
If the agreement does not provide the answer, the deadlock must be resolved through binding arbitration if the owners elected the agreement’s arbitration provision. Otherwise, it may require court action.
From the Joynt Operating Agreement
“When a proposed action or decision requires Majority Approval, and equal voting power is cast for and against approval, the Members shall first determine whether this Agreement mandates a particular course of action. When it does not, the matter shall be resolved through court action or, if Subsection 7.4B is in effect, through arbitration.”
Unless the law or the agreement requires a particular result, the arbitrator or court is directed to consider which course of action is most likely to preserve and enhance the property’s value without placing an unnecessary financial hardship on any owner.
From the Joynt Operating Agreement
“Absent law or a provision of this Agreement requiring a particular decision, the court or arbitrator shall make their decision based on what they believe is the course of action most likely to preserve and enhance the value of the Property without placing an unnecessary financial hardship on any Member.”
What happens when an owner believes the agreement has been violated?
The Operating Agreement establishes a formal notice-and-response process that must generally be followed before Default remedies may be pursued.
The process begins when the Management Coordinator or an owner submits a Notice of Possible Enforcement Action through Joynt.
The notice must include:
- A description of the alleged violation
- An itemized list of the actions required to correct it
- A description of the proposed enforcement actions
The actions requested must reasonably relate to the alleged violation. Joynt then posts the notice to the group’s online portal.
From the Joynt Operating Agreement
“The actions required to Cure an alleged violation must reasonably relate to the alleged violation. Joynt shall post the Notice of Possible Enforcement Action on its online portal.”
This prevents enforcement from beginning with only a vague accusation. The concern, requested correction, and proposed consequences must be documented.
Does the accused owner have an opportunity to respond?
Yes. Section 6.2 of the Operating Agreement establishes a 14-calendar-day response period measured from the posting of the Notice of Possible Enforcement Action.
During that period, the accused owner must provide a response through Joynt with the information and verifiable proof required by the agreement. Depending on the circumstances, the owner may:
- Complete the actions required to correct the alleged violation; or
- Formally challenge the allegation by initiating arbitration, if the arbitration provision applies, or court action
If the dispute involves an unpaid monetary obligation, the owner must also comply with the agreement’s “pay under protest” requirement before initiating the formal challenge.
Because failing to respond on time can have serious consequences, an owner who receives an enforcement notice should act immediately and obtain legal advice if needed.
What if the disagreement is about money?
An owner generally may not withhold an assessment or another monetary obligation while disputing whether the charge is proper.
The agreement requires the owner to:
- Pay the full outstanding balance under protest; and
- Seek reimbursement through arbitration, if the arbitration provision applies, or through court action
From the Joynt Operating Agreement
“No Member is permitted to delay payment of a disputed monetary obligation until after the dispute is resolved; rather, a Member who wishes to dispute the amount or propriety of a monetary obligation may only do so after paying the full outstanding balance.”
This rule is intended to make sure the LLC that owns the property continues to have the funds it needs to pay the mortgage, insurance, taxes, utilities, repairs, and other property obligations while the dispute is being resolved.
Paying under protest does not decide whether the charge was proper. It allows the owner to pursue reimbursement through the process described in the Operating Agreement without leaving the property’s bills unpaid.
Can enforcement be paused while the dispute is being decided?
Under the agreement, properly initiating arbitration or court action after satisfying any applicable “pay under protest” requirement triggers a temporary pause, called a Stay, of further enforcement relating to that alleged violation.
From the Joynt Operating Agreement
“Initiating court action or, if Subsection 7.4B is in effect, initiating arbitration, after paying any disputed monetary obligation under protest, triggers a Stay of further enforcement actions pending the outcome of the court action or arbitration.”
The owner must continue actively pursuing and participating in the proceeding. The Stay automatically ends if the owner stops participating in a way that demonstrates an intention to conclude the process promptly.
The Stay also applies only to the violation being challenged. If another violation occurs while the original dispute is pending, it may be addressed separately unless it is properly added to the existing proceeding as described in the agreement.
What happens if the owner does not respond?
If the accused owner does not satisfy the requirements of Section 6.2 within the specified response period, the agreement states that the owner is considered in Default beginning on the 15th calendar day after the Notice of Possible Enforcement Action was posted.
At that point:
- Default remedies under the agreement may be pursued
- The owner may lose the ability to delay those remedies by challenging the original violation
- Interest may begin accruing on an unpaid balance
- Other consequences of Default described in the Operating Agreement may apply
The agreement sets the interest rate at the lower of:
- The maximum rate allowed by law; or
- Three percentage points above the then-current Prime Rate
An owner should not ignore an enforcement notice simply because they disagree with it. The agreement requires a timely response through its established process.
Can the owners try mediation?
Yes. The Operating Agreement encourages owners to consider mediation for disputes relating to the property or the agreement.
Mediation allows the owners to work with a neutral person who helps them look for a mutually acceptable resolution. The mediator does not decide who wins and cannot impose an outcome.
From the Joynt Operating Agreement
“Mediation is a voluntary informal attempt to resolve a dispute with the help of a neutral individual who has no decision-making authority. Mediation can be highly effective in co-ownership disputes and is significantly faster and less expensive than arbitration. For these reasons, all Parties are encouraged to attempt to resolve any disputes relating to the Property or this agreement through mediation.”
Mediation is voluntary. No owner is required to initiate or participate in it, and attempting mediation is not required before an owner pursues another remedy available under the agreement.
From the Joynt Operating Agreement
“However, nothing in this Agreement is intended to compel any Party to initiate or participate in mediation, and a mediation attempt is not a prerequisite to pursuing any remedy or procedure described in this Agreement.”
This allows owners to try a more collaborative approach when appropriate without allowing mediation to become an indefinite delay.
What happens if mediation does not resolve the dispute?
When the owners first agree to Joynt’s services, they determine whether the Operating Agreement’s arbitration provision will apply. Once that determination has been made, it may be changed only with unanimous owner approval.
If the owners elected arbitration, disputes connected with the Operating Agreement, including disputes between owners, are generally submitted to binding arbitration, subject to the requirements and exceptions in the agreement.
From the Joynt Operating Agreement
“Arbitration is a method of resolving a dispute by delegating decision-making authority to a neutral individual or panel. Except as otherwise provided in this Agreement, and subject to the requirements and prerequisites of Section 6.2, any dispute arising in connection with this Agreement, including any dispute between Parties, shall be submitted to binding arbitration.”
When the arbitration provision applies:
- Arbitration is conducted by JAMS under its then-current arbitration rules
- It takes place in the JAMS urban center closest to the property
- A neutral arbitrator or panel decides the dispute
- The party initiating arbitration advances the fees needed to begin
- The arbitrator ultimately determines how arbitration costs and fees will be allocated
- The arbitrator may award remedies available under applicable law or equity
- The arbitrator’s ruling is final and binding
- A judgment reflecting the arbitration decision may be entered in a court with jurisdiction
From the Joynt Operating Agreement
“When arbitration is permitted or required under this Agreement, it shall be conducted by the Judicial Arbitration and Mediation Service (‘JAMS’), under its then-current Arbitration Rules, in the urban center where JAMS operates that is closest to the Property.”
If the owners did not elect the arbitration provision, disputes requiring formal legal resolution may need to be brought in the state or federal courts located in the state where the property is located.
Does arbitration completely eliminate the possibility of going to court?
No. When the arbitration provision applies and is enforceable, covered disputes are generally decided by an arbitrator rather than through a court trial. Limited court involvement may still be necessary.
For example:
- A party may ask a court to compel another owner to participate in arbitration
- An arbitration decision may be entered and enforced as a court judgment
- A court may be asked to address whether a particular dispute must be arbitrated
- Applicable law or a provision of the agreement may require court involvement in certain circumstances
From the Joynt Operating Agreement
“The ruling of the arbitrator shall be final and binding, and judgment reflecting the arbitration decision may be entered in any court having jurisdiction.”
If an owner refuses to participate in arbitration or obstructs the process, the agreement permits another party to ask a court to compel good-faith participation. The agreement also addresses when the expenses and attorney fees incurred in bringing that request may be awarded.
Who pays the legal fees?
The Operating Agreement states that if a dispute concerning the agreement or property results in arbitration or litigation, the prevailing party is entitled to recover reasonable attorney fees, costs, and enforcement expenses.
The arbitrator or court determines who prevailed and how applicable fees and costs will be awarded, subject to the agreement and applicable law.
For a dispute involving an unpaid monetary obligation, the agreement also provides for prejudgment interest from the date of nonpayment at the maximum rate allowed by law.
Because formal proceedings can create significant financial consequences, owners have a strong incentive to follow the agreement, respond to notices promptly, and consider whether a good-faith resolution can be reached before arbitration or litigation becomes necessary.
What role does Joynt play when there is a dispute?
Joynt provides the structure and administrative tools used to support the processes established by the Operating Agreement. Depending on the issue, this may include:
- Maintaining the group’s Operating Agreement and ownership information
- Providing the voting system used for owner decisions
- Providing a shared place for votes and approved actions
- Receiving and posting formal notices and responses
- Supporting the agreement’s established processes for assessments, usage, ownership changes, and Defaults
Joynt does not provide legal advice or represent any owner in a dispute. Joynt also does not act as a neutral mediator, make binding legal decisions, determine which owner is right, or replace the owners’ individual attorneys.
If neutral help or a binding decision is needed, that role belongs to a mediator, arbitrator, or court.
The real protection begins before a dispute occurs.
A written agreement cannot prevent every disagreement or guarantee that a matter will stay out of court. It can, however, remove much of the uncertainty that allows disagreements to escalate.
With Joynt, the group has:
- Rules established in a signed Operating Agreement
- Defined financial and property-use responsibilities
- Clear voting requirements
- A designated owner responsible for defined administrative duties
- Documented votes, notices, and responses
- An opportunity to correct an alleged violation
- A voluntary path to mediation
- An optional binding-arbitration process
- Defined consequences when an owner does not respond or comply
That structure can make it easier to address problems consistently, protect the property, and pursue resolution outside of court when appropriate.
This FAQ provides general educational information about the standard Joynt Operating Agreement and is not legal advice. It does not replace or modify a group’s signed Operating Agreement or the Joynt Service Agreement. The applicable rights, deadlines, remedies, and dispute-resolution procedures depend on the signed documents, whether the owners elected arbitration, the law of the state where the property is located, and the particular circumstances. Anyone involved in an actual or threatened dispute should promptly consult their own attorney.
