Joint property ownership can arise through voluntary acquisition or inheritance, leading to undivided shares of the property among co-owners, commonly known as “co-owners” holding shares in the property. While smooth co-ownership is possible when co-owners have good relationships, it often presents serious challenges.
According to a previous announcement by the Land Registry, the exploitation of property shares can become economically impractical, limiting utilization and development opportunities. Disagreements among co-owners regarding usage, distribution, or separation of the property can lead to time-consuming and cumbersome exit processes.
Unfortunately, property owners may believe that leaving equal shares to their heirs is fair. However, this can burden their relatives in the future, leading to prolonged and contentious separation processes.
Solutions for Co-Owners Disagreeing on Property Utilization
Meeting and Agreement:
Conduct a meeting with all co-owners to discuss concerns and reach an agreement on property utilization, aiming for the collective economic interest.
Collaboration with a Professional Consultant:
Hire a professional consultant (e.g., engineer, agronomist, property manager, land appraiser, or real estate agent) to provide an objective opinion and assist in finding solutions.
Usage Agreement:
Draft a legal usage agreement that clearly outlines terms and conditions for property usage, as well as the rights and obligations of each co-owner.
Arbitration:
Agree to use an arbitration process to resolve disputes, involving an independent arbitrator.
Property Division:
If conflicts are unresolved, consider dividing the property into shares assigned to each co-owner as a potential solution.
Legal Provisions
In accordance with the law, there is a provision for Compulsory Separation/Distribution. If co-owners cannot agree, even one co-owner has the right to request the compulsory separation/distribution of the property, abolishing joint ownership. This may involve dividing the property into halves or allowing a co-owner to seek vertical separation of a plot.
Additionally, the Right of Choice allows a co-owner to agree to sell and transfer their share to any person. However, if the share is sold to a non-co-owner, the transfer is not recorded until the registered co-owners are given the option to acquire it at the agreed price.
Lastly, the auctioning of undivided property is an option in cases where the property is held in shares and cannot be separated based on area. Upon request from a co-owner, the property can be certified as undivided, and the ownership can be sold through a public auction under the supervision of the Land Registry and Cadastral Department.
ANNA-MARIA EFTYCHIOU
Director of PR & Communication
G&P LAZAROU Estate Agents
[email protected]
