WHAT IS CO-OWNERSHIP?
Co-ownership exists when a single asset is jointly owned by multiple individuals. Each co-owner holds a share, which, unless proven otherwise, is presumed to be equal to that of the others. This share determines both the benefits to be enjoyed and the obligations to be fulfilled, including participation in maintenance costs and improvements.
RIGHTS OF CO-OWNERS OVER THE COMMON PROPERTY
USE LIMITATIONS
A co-owner may allow third parties to use the property within the limits of their own share. However, any changes or innovations that alter the common property require unanimous consent from all co-owners.
FINANCIAL OBLIGATIONS IN CO-OWNERSHIP
The preservation of the common property requires all co-owners to contribute proportionally to necessary expenses. If one co-owner assumes these costs alone, they are entitled to reimbursement from the others. In the event of a share transfer, the new holder becomes jointly liable for any outstanding charges, ensuring continuity in obligations toward the co-ownership.
HOW IS CO-OWNERSHIP ADMINISTERED?
Each co-owner has the right to participate in managing the property. Decisions regarding ordinary management are made by absolute majority, calculated based on the value of each co-owner’s share. If consensus cannot be reached, judicial intervention may be sought to resolve disputes.
An internal regulation may be approved, or administration delegated to a third party, provided that the decision is supported by an absolute majority of the co-owners.
DIVISION OF COMMON PROPERTY
No co-owner is obligated to remain in the co-ownership indefinitely. At any time, a co-owner may request the division of the asset, unless a valid agreement exists to maintain co-ownership for a period not exceeding five years. Even with such an agreement, serious circumstances may justify judicial intervention to order partition.
If possible, division must be carried out in kind, assigning each co-owner a proportional share. If the asset is indivisible or legally cannot be divided, it must be sold, potentially through public auction if one of the co-owners is legally incapacitated.
If division would render the asset unfit for its intended use, partition will not be feasible. These rules also apply, as appropriate, to other real rights held in common.
In summary, the co-ownership regime seeks to balance the individual rights of each co-owner with the collective needs of the community. It establishes mechanisms for the use, administration, preservation, and potential division of the shared asset, aiming to prevent abuse and ensure fair distribution of both benefits and burdens.
Our law firm has experience in handling co-ownership disputes, division of indivisible assets, and administration of common property. If you are facing a similar situation, contact us team for specialized legal assistance.
Frequently Asked Questions (FAQs)
Can a co-owner sell their share without the others’ consent?
Yes. Each co-owner may freely dispose of their share, although not of the entire property.
What happens if a co-owner fails to pay for maintenance costs?
The defaulting co-owner can be compelled to pay, and in the event of a share transfer, the new owner assumes joint liability.
Is it mandatory to remain in co-ownership?
No. Any co-owner may request division at any time, except in the presence of a temporary agreement lasting up to five years.
What if the property cannot be physically divided?
It must be sold, and the proceeds distributed among the co-owners—potentially through public auction in specific cases.
Who manages the common property?
All co-owners are responsible for management, but ordinary decisions are made by absolute majority based on share values.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
