Tips on how to avoid indivisible joint ownership, i.e. joint ownership, are given by the Department of Land and Land Surveys in their newsletter.
In particular, the Land Registry notes that joint ownership may arise, among other things, upon the voluntary purchase of property by two or more persons in shares, as well as upon inheritance, in which case the real estate of the deceased person passes to the heirs in indivisible ideal shares.
Noting that co-ownership can be smooth if co-owners have a good relationship with each other, pointing out that in many cases this poses serious problems.
According to the announcement, often the exploitation of shares of real estate becomes economically unprofitable, the possibilities of exploitation/development of real estate are minimized, friction arises between co-owners due to a mismatch in the methods of exploitation of shares and/or division/division of real estate and require lengthy and laborious procedures for exiting joint ownership .
“The above problems,” adds the Land Registry, “become even more numerous in the case of a large number of co-owners, which, especially in relation to inherited property, increases over time. Unfortunately, parents think that when they inherit, they leave their property to their children in equal shares so that no one is offended. However, the children suffer in the future to separate her, a process that can take a long time, creates strife between them and does not always go smoothly.”
In addition, the Land Registry notes that the Real Estate (Ownership, Registration and Valuation) Act, Chapter 224, includes provisions that restrict joint ownership, such as settlement/distribution.
Under this procedure, real estate consisting of one or more objects owned by two or more co-owners can be subdivided / divided under certain conditions (provided that the minimum permitted areas are not violated) with the consent of all co-owners. “This procedure is undoubtedly the most appropriate. Usually this comes up against the disagreement of at least one conjunctuary, ”explains the Land Book.
The provisions of the law include mandatory division / distribution: if the co-owners do not agree to the peaceful division / division, then even one co-owner has the right, under certain conditions, to demand from the director of the tax office the forced separation / division of real estate in shares, in order to liquidate shared ownership, and also a division into halves, on the basis of which the co-owner has the right to demand, on conditions, a vertical division of the plot he owns with another person.
The right of option is also still provided, when a co-owner of real estate can agree on the sale and transfer of a share to any person. If a share is sold to a third party (other than a co-owner), the transfer of his share is not executed in the name of the buyer until the registered co-owners are given the right to purchase it on their own at an agreed price.
Finally, there is an auction of indivisible property, when in cases where real estate is in shares and is indivisible (that is, it cannot be divided by area), then at the request of one of the parties it can be provided by the Director of the Department of Lands and Surveys (TCX) with a certificate on inalienability and property subject to sale at public auction.
“From the foregoing, it can be seen that the process of leaving joint ownership is often complex and creates friction and disputes between the parties,” it says.
The Land Registry urges parents to take care to donate their real estate to their children on time and to prefer the transfer of the entire share to each child. He adds that real estate law always provides for the option, when you transfer your property, to keep in your name for life the rights of possession and use in any amount of your property that you wish.
He also calls for the acquisition of whole shares. “Avoid buying shares of real estate with third parties,” he says, adding that this advice doesn’t apply to spouses and when you’re sure co-ownership will help you in a joint business venture, or for other special cases.
With regard to persons stuck in joint ownership, the Land Register calls for the study of legislation or the advice of specialists “in order to take advantage of the provisions mentioned above to get out of indivisible joint ownership.”
He adds that “if the person of whose heir or trustee you are dies, then you act immediately to distribute the property in the name of the heirs after an attempt has been made to agree between you to distribute the property in its entirety, shares, where possible.