By: N. Pirilides & Associates LLC
Co-Ownership Disputes Under the Law on Immovable Property Cap. 224
The Law on Immovable Property (Tenure, Registration and Valuation), Cap. 224 provides a useful guide for resolving co-ownership disputes.
Problems in co-ownership can arise, inter alia, through the voluntary purchase of indivisible shares in a property by two or more persons, or through inheritance, in which case the immovable property of the deceased person passes to his heirs in undivided shares. Exit from such co-ownership is also often difficult and creates friction and conflicts between the co-owners.
Frequently co-ownership creates problems, such as the exploitation of the shares in a co-owned property can become economically unbearable, the potential for the development of such property is minimised and there are often conflicts between the co-owners especially in cases where there is a large number of co-owners, particularly in the case of properties held by inheritance, where this number increases over time.
Provisions
The Law on Immovable Property Cap. 224 contains certain provisions for limiting and/or resolving co-ownership, as follow:
- Amicable Division of the property
When land is co-owned, the written consent of all co-owners is required until the completion of the division, as well as their agreement on the share each one will receive. An immovable property consisting of one or more properties owned by two or more co-owners can, under certain conditions, be distributed and/or divided by agreement of all co-owners (provided that the minimum permitted areas are not violated). - Forced Division of the property
In case where the co-owners of the property do not agree to an amicable division/distribution, then any one of them has the right to request the forced division/distribution of the immovable property from the Director of the Department of Lands and Surveys in order to end such co-ownership. - Vertical separation of the property
Under certain conditions, a co-owner has the right to request, the vertical separation of a plot of land which he co-owns with someone else.
Right of Option
When a co-owner of an undivided share in an immovable property agrees to sell and transfer his share to another person, then in case the share is sold to a person who is not a registered co-owner in the same property, the transfer of the share will not be registered in the name of the buyer until all registered co-owners are given the right/option to acquire it themselves at the agreed price.
Request for a certificate of indivisibility and sell the property at an auction
In cases where the immovable property is held in undivided shares (i.e. it cannot be divided according to its area), then, upon request of one of the co-owners, a certificate of indivisibility can be obtained from the Director of the Department of Lands and Surveys and such property can be sold at public auction.
Concluding, the division and/or separation process is not simple, yet it’s feasible. Being proactive is always advisable before things become more complicated with the addition of more co-owners who may come into existence either through inheritance or even through the transfer of shares to other persons.
N. Pirilides & Associates LLC may assist you with the drafting of the division/separation agreements and any other relevant agreement and also provide legal advice and litigation representation in the event of any dispute arising.
