Hedman is your trusted partner in all matters related to common ownership and joint ownership. We provide guidance in disputes concerning the management, use, and termination of shared ownership.
Disputes on the Division of common ownership or joint ownership
- Methods of terminating common ownership or joint ownership
- Right of right of pre-emption
- Agreements on the management, use, and termination of shared ownership
- Division into physical shares
- Buyout of the other owner’s share and determination and payment of compensation
- Auctions between co-owners
- Public auctions
- Compensation claims
- Division of assets and liabilities
- Entries in the Land Register and amendments
- Sale, purchase, and rental of co-ownership
Frequently Asked Questions
I inherited property that includes half of a house. The co-owner does not want to buy out my share.
If the co-owners cannot reach an agreement on the division of the property, you will need to go to court, where the property will be divided. There are various ways to divide property:
- Physical shares: This may be difficult with a house. For example, if it were a plot of land, it could be divided into real parts.
- Assigning the property to one co-owner who compensates the other(s).
- Selling the property through either a mutual agreement between co-owners or a public auction.
Part of my inheritance is being auctioned. What should I do?
If there are debtors among the co-heirs and each of you owns a notional part of the inheritance, a bailiff can seize and sell the debtor’s notional share. You do not have a right of first refusal for this share. However, you can purchase it at auction or reach an agreement with the debtor and the bailiff to have the property sold to you under the bailiff’s control. The debtor also has the option to pay off the debt to stop the auction. It’s advisable to consult a legal advisor.
I want to buy out property from a co-owner. What should I do next?
You need to make an offer to the co-owner to purchase the property. If the parties cannot agree, you will need to go to court to divide the property.
How is the money divided in a sale of co-owned property?
If the co-owned property is sold at a public auction, the money is divided among the co-owners according to their ownership shares. The bailiff’s expenses are deducted from the sale amount first, and then the remainder is divided based on ownership proportions. For example, if both co-owners each hold a 50% share, the money is split equally. If the shares are 1/3 and 2/3, the money is divided accordingly.
If I have been solely maintaining the co-owned property and have incurred expenses, can I recover these from the other co-owners?
According to the law, a co-owner has the right to carry out necessary actions to preserve the property without the consent of other co-owners and can demand compensation for necessary preservation expenses from the other co-owners in proportion to their shares.
However, the expenses must be essential for preserving the property, not for enhancements. We recommend consulting a legal advisor who can help determine which expenses are necessary and which are considered enhancements.
