Divison of propety

11.10.2023 Author: Imoti Bansko BG Ltd.

снимка на  Раздел  совместно принадлежащей недвижимости.

"Imoti Bansko BG EOOD Introduces a New Section"

Our goal is to provide our clients with the most comprehensive information when dealing with real estate transactions such as acquisition, sale, inheritance, establishing usage rights, and more.

Today, we will provide you with a summarized guide on the division of co-owned real estate.

Almost every one of us, at some point in our lives, becomes a co-owner of some property, especially through inheritance, be it a car, real estate, or other assets.

There comes a time when this property needs to be divided among the co-owners.

How can this be done?

The classic way to terminate co-ownership is through division. Every co-owner has the right to request the division of the common property, unless the law provides otherwise or if it is incompatible with the nature and purpose of the property. Through division, each co-owner acquires an individual right over a specific portion of the entire property.

Division can be voluntary or judicial:

In the case of voluntary division, all co-owners must agree. Voluntary division of movable property valued at over BGN 50,000, as well as real estate, is done through a written contract with notarial certification and registration in the Property Registry (for real estate).

Judicial division is carried out through a special judicial procedure initiated by one or more co-owners, but in all cases, it must include all co-owners without exception.

The judicial division consists of two phases:

Phase one: Establishing the existence of co-ownership, determining the individuals holding ideal parts of the common property, and assessing the shares of each co-owner.

Phase two: Termination of co-ownership. If the properties are divisible to the extent that each co-owner can receive at least one share, a division protocol is drawn up. It specifies the individual shares that co-owners are entitled to. Afterward, lots can be drawn to determine which co-owner gets which share. If co-owners do not agree on this method, the court will decide how the division should be made. Based on the court's decision, co-owners become the actual owners of the property included in their share. If the properties cannot be divided adequately, the court may order the sale of the common property at a public auction. Using the proceeds from the sale, co-owners are paid in proportion to their ownership shares.

Please note that this is a general summary of the article, and specific legal requirements and procedures may apply in your jurisdiction. It is advisable to consult with a legal professional for guidance on your particular situation.