What is Partition of Co-Ownership?

Partition of co-ownership is a legal procedure aimed at separating between co-owners of real property. The situation is common among heirs who inherited property together, separated spouses, or business partners who wish to end the co-ownership.

The Land Law, 1969, provides that any co-owner of land may demand partition at any time, and this right cannot be waived.

Ways to Partition

1. Partition by Agreement

The simplest and cheapest way. The co-owners agree on how to divide the property – one buys out the other, they sell together and split the proceeds, or carry out a physical division.

2. Partition in Kind (Physical Division)

Dividing the property into separate parts – mainly relevant for land and plots. Physical division of apartments is usually not possible.

3. Sale to a Third Party

When the property cannot be divided and there is no agreement between the co-owners, the court may order the sale of the property and division of the proceeds.

4. Mutual Purchase

One co-owner buys out the others – common among heirs when one wishes to keep the property.

Partition Among Heirs

A common situation after a parent's death when property was left to the children. There are often disagreements – one wants to sell, another to rent, a third to live in the property. In such a case, any heir may apply to court for partition.

Court Procedure

  1. Filing a claim: File in the Magistrate's Court in the area where the property is located.
  2. Mediation: The court often recommends mediation before a hearing.
  3. Appraisal: Appointment of a real estate appraiser to determine the property value.
  4. Decision: The court orders the method of partition – division, sale or purchase.
  5. Execution: Carrying out the decision.

Important Points

  • Partition may lead to betterment tax and purchase tax liability.
  • A spouse residing in the property may be entitled to protection from eviction.
  • A clear co-ownership agreement in advance can prevent future disputes.

Summary

Partition of co-ownership is a sensitive procedure involving legal, emotional and financial aspects. Professional representation can help protect your rights and achieve the best outcome. At Adar – Dor we specialize in real estate disputes and accompany clients through the entire process.