Co-Ownership Partition Agreement

Description

A co-ownership partition agreement is a contract more precisely referred to as an agreement on the division of co-ownership.
Co-owners are in a permanent legal relationship with respect to the property, and each co-owner has the right to request partition at any time, provided it is not exercised at an inappropriate moment.

As a primary approach, it is recommended that co-owners carry out the division by mutual agreement. A co-ownership partition agreement enables such an arrangement, which is generally more amicable and therefore simpler.

A co-ownership partition agreement can only be concluded if all co-owners participate. It enables an out-of-court division, where physical division represents a simultaneous transfer and acquisition of ownership rights. Such an agreement is governed by the same legal rules as the acquisition of ownership rights based on a legal transaction.

In the case of real estate, a Land Registry authorization is required, with notarized signatures of all co-owners.

The agreement must also be reported for tax purposes, and the citizenship of the contracting parties or the existence of reciprocity must be demonstrated.

A minor may also be a party to the agreement if they are a co-owner. In such cases, the division is only permitted if the parents, acting as legal guardians, obtain approval from the competent Social Work Center (CSD). Without such approval, they may not dispose of or encumber assets belonging to the child.

A mutually agreed partition therefore requires compliance with specific legal conditions, with the consent of all co-owners being essential. Otherwise, the division of co-ownership is carried out before the competent court in non-contentious proceedings.