Selling a property without the consent of a co-owner

The legal rules on managing real estate are not simple. They are set out in several different provisions of the Civil Code. The same code describes the rules governing the sale of a property without a co-owner's consent. The subject is fairly complicated and has many aspects. We will, however, describe the most important legal regulations in this area.

• Selling part of a property without a co-owner's consent – is it possible?
• Selling a property – what does the law say?
• What about people after a divorce?
• One wants to sell – the other does not. What then?

Selling part of a property without a co-owner's consent – is it possible?

Under the letter of Polish law, it is permitted to sell a share of a house or flat to which more than one person has rights. This matter is governed by Article 198 of the Civil Code, which states:

Each co-owner may dispose of his share without the consent of the other co-owners

It is worth noting what exactly the phrase "disposing of one's share" means. According to the specialist literature, it means that a person who holds a partial right to a property may part with it in favour of another person, that is, transfer their right to a third party, but not only that. It turns out that selling a property without the co-owners' consent is not the only option available to the holder of a fractional ownership share. That person may also encumber their part of the property (for example, to secure a loan or a mortgage) or renounce their share. However, you should be aware that this is possible only in the case of a fractional ownership share. The situation is different when the decision concerns the whole property.

Selling a property – what does the law say?

For acts whose subject is the whole of the jointly owned property, and not only the part belonging to a given co-owner, the position is different from the one described above. It turns out that when disposing of the entire property, e.g. a house in Sosnowiec, to which several people lay claim, the appropriate consents of the co-owners are required. This matter is also regulated by the provisions of the Civil Code. It is therefore worth looking at the wording of Article 199 of the Civil Code:

The consent of all co-owners is required to dispose of the jointly owned item and for other acts that exceed the scope of ordinary management. Failing such consent, the co-owners whose shares amount to at least one half may request a decision by the court, which will rule having regard to the purpose of the intended act and the interests of all the co-owners.

Under this provision, persons holding at least 50% of the ownership may seek a court decision on the management of the jointly owned property. In addition, the owner must bear in mind any contractual arrangements made earlier on management, and how the parties agreed to handle the management of the property. It is also worth noting that co-owners who hold at least half of the property must remember that the court will rule in line with Article 199 of the Civil Code, that is, in such a way that nobody is harmed.

TRANSFER OF OWNERSHIP OF A PROPERTY

What about people after a divorce?

What rules apply to a property belonging to spouses? In the event of their divorce, each of them has a right to a share of the flat or house. There are two ways out of this difficult situation. While still married, the spouses can sell the property and split the proceeds equally to avoid court battles. One of them can also sell their share in the flat to the other spouse, who then buys them out. It is worth remembering, however, that joint ownership of a residential unit within a marriage exists only if it is entered in the land and mortgage register (księga wieczysta) of the property.

One wants to sell – the other does not. What then?

In such a disputed case, an agreement will not always be reached. A person who does not want to take part in the sale of an item owned by several people may file a court application for the dissolution of co-ownership and for the appointment of an expert valuer, who will assess the amount of the payout due to them. In this situation, the person who gives up co-ownership receives money, while the property is divided among the remaining co-owners.

Selling a property owned by several people is quite a complicated matter. However, all the most important issues related to it have been presented here. If you have any questions or doubts, you can get expert help from the specialists at the REMAX Gold estate agency.