Dissolution of Co-ownership. Termination of Joint Ownership. Disputes Between Co-Owners. Claims for Use, Expenses, etc.

At our firm, we frequently receive enquiries from former couples, heirs, business partners, investors, and other co-owners who; after purchasing or inheriting a property together, now face conflicts and seek the dissolution of co-ownership. Joint ownership or Co-ownership is regulated under Articles 392 and following of the Spanish Civil Code. This means, fundamentally, that a single asset belongs to multiple owners.

Dissolution of Joint Ownership.

According to Article 400 of the Spanish Civil Code, no one is obliged to remain in indivision. In other words, any co-owner can request the division of the jointly owned property at any time. The only exception to this is the existence of an agreement requiring the property to remain undivided for a specific period. Such agreements can have a maximum duration of 10 years and may be extended.

The most advisable approach is always to reach an amicable agreement to either divide the property or agree on a buyout, where one co-owner purchases the others’ shares. If no agreement is reached, the property may be sold to a third party. In such cases, it is advisable to seek an independent valuation to ensure a fair settlement. If the parties cannot agree or do not wish to continue sharing the property, there are two main legal scenarios:

. – If the property is divisible, it will be divided, and each owner will receive a portion according to their share. However, this is not always feasible. For real estate, division is only possible if allowed by urban planning regulations, which is not always the case.

. – If the property is indivisible (either legally or because it would lose its value), the co-owners may reach an agreement among themselves. Alternatively, they may resort to arbitration (Article 402 Civil Code). If no agreement is reached, a legal action can be filed, potentially leading to the court auction of the property.

Common Issues in Co-Ownership or Joint Ownership.

Beyond disagreements over division, co-ownership often leads to other conflicts, particularly regarding the use of the property and financial contributions.

Claims for Exclusive Use and Exclusion of a Co-Owner

In some cases, one co-owner may exclusively use the property while preventing others from enjoying their share. When this happens, the excluded co-owner may claim financial compensation for the loss of use. This claim may succeed as long as it can be demonstrated that access and enjoyment of the property have been effectively denied.

Claims for Unequal Contributions and Shared Expenses

It is common for one co-owner to bear a greater financial burden than others. This may occur at the time of acquisition (by paying more than his/her proportional share) or later, by covering expenses such as property tax (IBI), waste collection fees, maintenance, repairs, mortgage loan instalments, etc alone. A co-owner who has paid more than their fair share has the right to claim reimbursement for the excess amount paid.

If you are facing any of these issues, whether you wish to proceed with the dissolution of co-ownership, claim compensation for use, or recover overpaid expenses, do not hesitate to contact us.