Dark Aspects of Cap. 224: Co-Ownership on immovable property

By: N. Pirilides & Associates LLC

Resolving Co-Ownership Disputes: Key Provisions of Cap. 224 on Undivided Property Shares

Disputes arising from undivided co-ownership can be resolved by the procedure laid down in the Law on Immovable Property (Tenure, Registration and Valuation), Cap. 224.

According to the provisions of Cap. 224, when a land is co-owned, all of the co-owners must consent in writing until the completion of the division and must also agree on the share that each one will receive.

However, it is most common that such co-owners do not consent on the division of the property and this results in the property remaining undivided. Voluntary purchase of indivisible shares in a property is the main cause of disputes. Co-ownership creates problems, such as the exploitation of the shares in a co-owned land can become economically unbearable and influences the productive development and utilisation of the property. Disputes between co-owners can escalate with the eventual desire of the co-owners to exit from such co-ownership.

Of particular interest is the case where one of the co-owners refuses to consent to an amicable division of the property. More specifically, section 29 of Cap. 224 provides that where the co-owners do not agree to an amicable division of the property, then even one co-owner has the right to submit a request to the Director of Land Registry and request the forced division of the property held in shares, with a view to end such co-ownership.

Further, the co-owner has the right of option, which is regulated by section 25 of Cap. 224. More specifically, the owner of an undivided beneficial interest in immovable property may make a statement before the District Land’s Office that he has agreed to sell it to a person who is not a registered co-owner of the said property.

The intended sale shall be published in such type and in such newspaper(s) as the Director of the Land’s Office may require or brought to the knowledge of the other co-owner by service upon him of written notice in such type as the Director may require and any registered co-owner may, by filing with the Land’s Office, within thirty days after the publication or service of the notice, of the price at which the seller's lot is sold together with the registration fee, may register for such lot, and for that purpose, the amount so deposited, shall be paid to the person who participated in the declaration of sale as purchaser.

Section 29(3) of Cap. 224 provides that the Director shall proceed with the distribution of such property, if possible according to the wishes of the interested parties. In case the interested parties do not approve the piece(s) of land they are given, the final say shall rest with the Director, who shall distribute the property by lot and his decision shall be notified in writing to all the interested parties, who shall have the right either to accept the decision or to appeal to the Court by filing a petition/appeal (section 80 of Cap. 224), informing the Director at the same time. Consequently, the Court will issue an order and the Director shall act in accordance with that order.

In light of the above, it is demonstrated that the consent of co-owners to the sale of an undivided immovable property is an integral part of the process of division of properties. However, Cap. 224 provides an opportunity for the co-owner who wishes to proceed with the intended sale, to proceed by following the mechanism provided for in section 25 of Cap. 224.