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Termination of Co-ownership by Partition

Termination of Co-ownership by Partition

In this post, we will explore the termination of co-ownership by partition. Partitioning is a process in which co-owners divide their property and can be used to terminate co-ownership.

One of the most common reasons for terminating an ownership interest through partition is when one person wants to take sole possession of a piece of a property.

In other words, if you want your share in the property that you own with someone else then you may do so by dividing up all or part of that land into separate parts or pieces and giving each owner his/her share (more on this below). What are some other reasons? Read more about it here!

What Is Co-ownership?

Co-ownership is two or more people sharing, and thus jointly owning, a property with the intention of dividing its usage and/or benefits. Co-ownership can take place through various institutions such as cohabitation, partnership, corporation or trust responsibilities. Co-owned property is frequently used for acquiring homes and commercial buildings to avoid paying double taxes.

A common situation would be where one party purchases a plot of land but another wishes to provide ownership by means of their own land rather than traditional currency.

Alternatively, it may be used in situations where someone has a sole license on a trademark and wants to have it canceled so that the other person can use them as well. This term should not be confused with joint tenancy since the difference between co-ownership and joint tenancy is that in joint tenancy, even if one person dies the property is legally still owned by all.

How to Terminate Co-ownership by Partitioning?

termination of co-ownership by partition

With partitioning, two or more co-owners of a property equally divide the property and share ownership. In order to complete partitioning, one party has to file an action in court for a decree establishing boundaries of distinctly owned portions of land. There are two kinds of partitioning: voluntary partition and court partition.

Voluntary partition

If the co-owners are able to reach an agreement on the partition’s conditions, they may terminate their ownership in common without going to court. In this case, the parties create a formal contract that must be signed by all of the co-owners in order for the division to be valid.

In the partition method, each property type’s minimum area requirements will be satisfied. All co-owners must participate in the division. The contract will be invalid if any of the co-owners fails to comply with this criterion and the consequences are limited (for example, a court order may not be issued).

Court partition

If the co-owners cannot agree on a particular division of the common ownership, they can go to court for a ruling. Any of the co-owners may bring an application for partition before the competent regional court in this instance.

All co-owners should participate in the court partition, much like the voluntary partition. Otherwise, the partition will be invalid and will have no legal effect to terminate co-ownership and convert it into an individual property. This kind of partition has two stages:

  • Accepting the division – In this phase, the court resolves the issues between which individuals and over which property the partition will take place, as well as what portion belongs to each co-owner. The court’s decision will be in the form of a judgment, which may be appealed.
  • The second stage is the partition’s real phase. Consideration should be given to the number of co-owners, the number of admitted estates, and each co-owner’s right when deciding how to execute the partition. It’s also important to determine whether the property/properties in question is/are divisible.
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