Shared title and partition

Co-owners, especially of inherited property, may be unable to agree on its use, letting or sale. Shared title becomes harder to manage over time as the number of co-owners grows.

The right to demand division

Under Article 698 of the Civil Code, unless there is an obligation to maintain co-ownership by agreement or because the property serves a permanent purpose, any co-owner may demand division. This right may be excluded by agreement for up to ten years, and division may not be demanded at an inopportune time.

Mediation first

Applying to a mediator before filing a partition lawsuit is a precondition under Article 18/B of Law No. 6325. If the co-owners reach a solution, registration at the land registry is possible on the basis of the settlement.

Division in kind or sale?

Under Article 699, division is made either by dividing the property itself or by selling it and dividing the proceeds. If the co-owners cannot agree, the court first orders division in kind, with cash equalisation if the parts are of unequal value.

If division is not appropriate, particularly where the property cannot be divided without significant loss of value, the court orders a public auction. Zoning rules and the nature of the property often prevent division in kind, so sale is more common in practice.

Selling a share and the right of pre-emption

If a co-owner sells their share to a third party, the others may exercise the statutory right of pre-emption under Article 732. Under Article 733, the sale is notified to the other co-owners through a notary; the right lapses three months after notification and in any event one year after the sale. Pre-emption cannot be exercised in forced auction sales.

Our view

A court-ordered sale carries the risk of the property changing hands below market value. One co-owner buying out the others, a joint decision to sell on the open market, or a usage agreement can often be reached at lower cost during mediation. A lawsuit should usually be the last resort.

Related reading: Inheritance law; Real estate law.