What is Shared Real Estate, How to Buy and Sell?
Immovables in which more than one person has a share in the title deed are called shared real estate. There are two types of proprietary real estate:
- Shared ownership: In this type of shared deed, it is clear how many shares each shareholder has on the real estate.
- Co-ownership: The share of shareholders acquiring real estate through inheritance is sometimes not clear. Persons who want to sell shared real estate should convert their joint ownership to shared ownership. According to Article 644 of the Civil Code numbered 4721, an application can be made to the Civil Court of Peace for the conversion of joint ownership to joint ownership. The magistrate calls the heirs to report their objections. If there is no heir objecting, the real estate in question is converted into shared ownership.
How to Buy and Sell Shared Real Estate?
There are some differences that distinguish shared real estate from detached real estate. It is not clear who owns which part of the real estate in shared real estates. All shareholders are partners in all parts of the real estate. Therefore, you do not have the right to use even a portion of the property unless you come to a common agreement with all the shareholders.
You can also sell or mortgage your share to someone else, but you must obtain the consent of all shareholders to intervene in all or part of the property.
How to Buy and Sell Shared Real Estate?
Shared title deeds include the names of more than one person, but it is not specified who owns which shares. For this reason, the agreement of the owner of the real estate and the buyer is not sufficient to carry out the purchase and sale of the share real estate. Savings such as leasing and building on real estate cannot be realized without the consent of all shareholders.
Persons who are entitled to share title deed need to reach a common opinion. For this reason, there are different sales options depending on the demands of the shareholders who will sell the real estate:
- All shares of the shared real estate can be sold together. Shareholders must make a joint decision on the sale of the real estate and be present at the deed for sale. Deed transfer can also be carried out by giving a power of attorney to a lawyer who will represent all shareholders. However, if any of the shareholders does not want to sell the real estate, they have the right to file a lawsuit.
- There is a different way to follow if only one or a few shares are sold, not the whole of the share deed. The person or persons who will sell their shares must first notify the other shareholders that they will sell their shares through a notary public. The primary right to purchase the share title deed belongs to the other shareholders. Shareholders can acquire real estate shares over the sale price stated in the deed, whenever they want to buy. When the people who own shares on the immovable do not want to buy it, the said share can be sold to other people. If one of the shareholders makes the sale without notifying, the other shareholders may file a pre-emption case. For more detailed information about the right of pre-emption and its case, “What is the Right of Shufa, Who Can Use It?” You can read our article.
It is also possible to turn a common property into a personal property by dividing it among the stakeholders. A shareholder can make this request by filing a lawsuit for the dissolution or dissolution of the partnership.
