Joint ownership (indivision) of property in France

When several people own a property without having divided it, this is called joint ownership (indivision). It can follow an inheritance, a joint purchase or other circumstances. Joint ownership has particular features and implications worth understanding. In this article, we explain what it is and what it means for the owners.

What is joint ownership?

Joint ownership is a situation in which several people, the joint owners, hold a property together without it having been divided between them. Each joint owner has a share of the property but no exclusive use of it. It can concern homes, land or commercial property.

The joint owners’ rights and obligations:

As joint owners, the co-owners have certain rights and obligations:

1. Right of use: each joint owner may use the property and receive income from it, provided they respect the rights of the others.
2. Decisions: management decisions such as letting the property can be taken by joint owners holding at least two thirds of the rights; selling the property in principle requires everyone’s agreement.
3. Sharing the costs: each joint owner contributes to the costs of owning and running the property (taxes, maintenance, service charges and so on) in proportion to their share.
4. Right to leave: each joint owner can leave the joint ownership by selling their share to another joint owner or, after offering it to the others, to a third party.

The consequences of joint ownership:

Joint ownership can have certain consequences for the owners:

1. Difficult decisions: decision-making can be complex, especially when the joint owners’ interests differ. Reaching a consensus is essential to avoid conflict.
2. Harder to sell: selling a jointly owned property can be more complex, as everyone’s agreement is needed. If one joint owner refuses, the process can stall, although the court can authorise the sale at the request of owners holding two thirds of the rights.
3. Shared liability: the joint owners are liable for the debts and obligations relating to the property. If one of them fails to meet their obligations, the others may have to make up for it.
4. Indefinite duration: joint ownership lasts until the property is divided. This can be a problem when the joint owners want to end it, although no one can be forced to remain a joint owner.

Leaving joint ownership:

When the joint owners wish to end the joint ownership, there are several options:

1. Amicable division: the joint owners agree to divide the property according to their rights, by mutual agreement or with the help of a notaire.
2. Selling the property: if they cannot agree on a division, they can sell the property and share the proceeds according to their rights.
3. Preferential allocation: one joint owner can also exercise their right of preferential allocation by buying out the others’ shares.

Joint ownership of property can be complex, with legal and financial implications. It is essential to understand the joint owners’ rights and obligations and the consequences of this situation. In some cases, an estate agent or a notaire will help find suitable solutions and end the joint ownership fairly for everyone.