How Is Jointly Owned Property Sold?
The term joint ownership refers to property held in common and undivided, most often land or real estate.
In legal terminology, jointly owned property refers to an asset or property owned by two or more persons without physical separation of their respective shares. For example, when a house is inherited by two individuals, each becomes the owner of an undivided one-half share of the property.
Both owners have the right to use the property, and any decisions regarding it must be approved by all co-owners. In practice, each owner has the right to possess and use the property, provided that the consent of the other co-owners is respected.
Conditions for the Sale of a Joint Share by One of the Co-Owners
Selling jointly owned property can be challenging due to the presence of multiple owners. In many cases, the market value of jointly owned property may be lower than that of a partitioned property with a single owner.
The sale or division of jointly owned property is generally possible only with the presence and consent of all co-owners. If one of the owners is under the legal age, lacks mental capacity, or is absent under any circumstance, the sale of the property requires a court order.
If disputes arise among co-owners regarding the partnership or division of the property, it may become necessary to remove the property from joint ownership and determine each owner’s share as a partitioned property.
Agreement among the co-owners is required for partition. These conditions also apply to the division process. Once a certificate of non-divisibility is issued by the competent court at the location of the property or by the Land Registration Office, any of the co-owners may apply to the competent court and submit a request for the sale of the jointly owned property.
This process requires filing a petition and submitting the relevant property documents through judicial service offices.
Petition for Partition of Jointly Owned Property
When co-owners fail to reach an agreement on partition or sale and are unable to divide the property among themselves, they must pursue the matter through a competent court. This requires submitting a formal petition requesting partition of the jointly owned property. The court examines the condition of the property and issues its decision to the parties.
Filing such a petition requires the submission of the property title deed and identification documents of all co-owners. The property must also be assessed by an expert, and the expert evaluation report must be included among the submitted documents. The co-owners must file an official petition requesting partition, along with full details of all owners.
Who Is Entitled to Request the Sale of Jointly Owned Property?
Any co-owner is entitled to submit a request for the sale of jointly owned property against the other co-owners. For example, if a jointly owned property has five co-owners and one of them wishes to sell the property, that individual must file a claim against the other four co-owners and list their names as defendants.
The court with jurisdiction over the location of the property is competent to hear claims related to the sale of jointly owned property.
How the Order for Sale of Jointly Owned Property Is Executed
Once issued, the court’s order for the sale of jointly owned property is immediately referred to the Civil Enforcement Office and does not require the issuance of a separate enforcement writ. The enforcement office appoints an expert to assess and determine the property’s value. If no objections are raised against the expert valuation, a public auction notice is published.
If the property is sold through auction, the proceeds of the sale, after deduction of legal and enforcement costs, are distributed among the co-owners in proportion to their shares.
If the property is mortgaged or subject to seizure, a request for an order of sale will not be admissible. Since the court’s decision on the sale of jointly owned property is issued as an order, it is not appealable.
The court may issue such an order only if the property is deemed non-divisible under a final decision of the local Land Registration Office.
Request for Annulment of the Sale of Jointly Owned Property
If one of the co-owners sells jointly owned property that is in fact capable of partition, legal action may be taken to annul the sale. This rule does not apply when a co-owner has sold only their undivided share of the property.
Frequently Asked Questions About the Sale of Jointly Owned Property
Jointly owned property is property held by two or more persons where each owner’s share is legally defined, but the shares are not physically separated. All owners have the right to use and make decisions regarding the property.
No. The sale of jointly owned property requires the consent of all co-owners or a court order, particularly if one of the owners is absent, underage, or lacks legal capacity.
Partition refers to dividing jointly owned property among co-owners so that each becomes the owner of a specific and separate share. If no agreement is reached, the court may order partition.
Any co-owner may file a request for the sale of jointly owned property against the other co-owners. The competent court is the court where the property is located.
The court issues the order to the Civil Enforcement Office, which arranges for an expert valuation and, if approved, conducts a public auction. The proceeds are distributed among the co-owners in proportion to their respective shares.
If jointly owned property capable of partition is sold without proper authorization, an action for annulment may be filed. This does not apply when a co-owner sells only their own share. What is jointly owned property?
Can jointly owned property be sold without the consent of other co-owners?
What does the partition of jointly owned property mean?
Who may request the sale of jointly owned property?
How is an order for the sale of jointly owned property executed?
Can the sale of jointly owned property be annulled?
