Joint ownership and dissolution of co-ownership of real estate in Spain or France

The division of real estate is a legal situation in which several owners share the ownership of a property without it having been materially divided between them. This situation has multiple implications in terms of the rights and obligations of each co-owner, particularly with regard to the administration and disposal of the property. In Spain and France, the division and dissolution of condominiums are regulated by specific regulations, although the two jurisdictions have significant similarities and differences.

Concept of joint ownership

Generally speaking, joint ownership refers to the co-ownership of a property in which the co-owners do not own a specific physical part of it, but an abstract part of the total. This can occur in both real estate and movable (personal) property. Joint ownership can arise for a variety of reasons, such as joint acquisition of property, an undivided inheritance, or a marital separation in which the joint property has not been assigned.

In Spain, the general regime of co-ownership is regulated by the Spanish Civil Code, in particular in articles 392 et seq. In France, the regulations of division are found in the Civil Code, in articles 815 et seq.

Rights and obligations of co-owners

In the Spanish and French legal systems, co-owners have the right to use the property according to their share of the interest (ownership?) and by mutual agreement with the other co-owners. However, any decision on the administration of property requires majority consensus, which is calculated on the basis of the proportion of quotas. For acts of disposition, such as the sale or mortgage of the property, the unanimity of all the co-owners is required, unless otherwise agreed.

A relevant aspect is that, according to Article 400 of the Spanish Civil Code, no co-owner is obliged to remain in the joint ownership. This means that any co-owner can request the dissolution of the co-ownership at any time, either through an agreement with the other co-owners or through the courts.

Dissolution of the co-ownership

The dissolution of the co-ownership is the process by which the co-ownership ends, by distributing the property among the owners or, failing that, by selling it and distributing the price obtained among the co-owners in proportion to their shares.

In Spain, as in France, the dissolution of the joint ownership can be carried out by consensus between the co-owners or, in the event of disagreement, by judicial intervention. If the co-owners cannot agree on the division of the property, the court may order its sale by public auction. This procedure is known as legal action for the division of (common property)?.

It is important to note that, in situations of joint ownership derived from inheritances, the heirs may resort to the action of judicial division of the inheritance, to proceed with the adjudication of the property.

Conclusion

In Spain, as in France, the division and dissolution of co-ownerships are governed by similar principles, although with particular nuances in each legal system. In both jurisdictions, the basic principle is that no co-owner is obliged to remain in the joint ownership indefinitely. The dissolution may be done amicably or, failing that, by judicial intervention.

Owners under the joint ownership regime of properties located in Spain or France must be aware of both their rights and obligations, and in the event of a conflict they always have the possibility of going to court, for which it is important to have the early advice of lawyers familiar with the legal systems concerned, in order to resolve the co-ownership as soon as possible, and avoid disputes as far as possible. BCV Lex, our teams in Bordeaux and Madrid are at your service and operate throughout France and Spain to defend your interests. Don’t hesitate to contact us.