Understanding Each Owner’s Rights on Undivided Property

• 11 May 2021
• Property Focus
• 5711 Views

When buying a plot of land or a house together with friends or multiple shareholders, each co-owner has a right to that property based on the number of shares. However, the rights are limited under uncertain conditions, especially when it comes to selling the property or selling your shares.

According to the 2001 Land Law and the 2007 Civil Code, and the type of property described above is known as undivided property.

Undivided ownership is a type of ownership on property that has more than one owner. However, the property cannot be subdivided into units for each owner, which means all owners hold only one ownership title deed.

Simply put, 10 people jointly buy a house. All of them will get only one title deed and they also cannot divide the house into ten pieces.

On the back of the title deed (or certificate of ownership), it will be inscribed as undivided property with names of each owner. In the case of there being multiple owners, not all names will appear on the document, but the name can be checked and verified with the Cadastral Authority.

Therefore, when buying this type of property with friends or any shareholder, all owners must go to register their names on the title deed with the cadastral authority to avoid future dispute.

Given this complication, you must have the consent of every owner if you are willing to sell the property, either just your share or the whole property.

In case one of the owners prefer to sell his/her share, besides getting consent from other owners, the title deed must be re-registered with a new shareholder name with the Cadastral Authority.

Not only should shareholders of the property learn about this type of property, but buyers should also beware. Before making any purchases, buyers should always check the details on the ownership title deed.

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