Joint ownership (indivision)
A legal situation in which several people hold rights over the same property without those rights being physically divided. Each co-owner holds a fractional or percentage share. Ordinary management decisions require a two-thirds majority and disposal acts require unanimity. It is common on inheritance or when unmarried partners buy together. Any co-owner may exit at any time by requesting partition.
Key points
- Each co-owner holds a fractional or percentage share of the property.
- Ordinary management acts require a two-thirds majority; disposal acts require unanimity.
- Any co-owner may request judicial partition at any time, unless a contrary agreement exists.
- An indivision agreement can be drawn up to make management easier.
Frequently asked questions
What practical problems can joint ownership create when selling?
The unanimity rule for any disposal act means that a single co-owner can block the sale. Where there is disagreement, typically on inheritance or separation, judicial partition proceedings must be initiated, which are lengthy and costly. Anticipating this risk through an indivision agreement or an SCI is advisable.
How is a mortgage granted when buying in joint ownership?
All co-owners are generally joint and several co-borrowers, meaning each is liable for the full debt. The bank assesses the group's overall repayment capacity and may require security over the whole property, regardless of each party's respective share.
Why do some couples prefer an SCI over joint ownership when buying property?
An SCI provides a more flexible governance framework through its articles, makes transferring shares between partners easier, and avoids the unanimity rule imposed in joint ownership. It also allows for staged gifting and better management of rental income tax. The trade-off is the cost of setting up and administering the company.
In practice
Two brothers inherit a flat in equal joint ownership. One wants to sell; the other wants to keep it. Unable to agree, they sign an indivision agreement for 5 years that organises rental management and defers the sale decision.
Official sources
- Estate: undivided ownership among heirs · Service-Public.gouv.fr
- Sale agreement and loan condition precedent · Service-Public.gouv.fr
- Housing and financing information · ANIL