In Cyprus, a significant portion of immovable property is jointly owned by two or more individuals. This usually arises through inheritance, equal-share donations, joint purchases etc. While co-ownership may seem fair and practical, in reality it often leads to serious complications including disputes, legal complications, and financial losses.
The more co-owners involved, the more complex and challenging the situation becomes. These issues are particularly common with inherited properties, where multiple heirs become co-owners. Instead of benefiting from their inheritance, families can find themselves entangled in costly and time-consuming legal battles.
Common Problems with Co-Ownership in Cyprus
1. Underutilization and economic inefficiency
Disagreements among co-owners about how to use or develop the property often result in it remaining idle and unproductive, generating no income and possibly incurring costs.
2. Disagreements and conflicts
Different views on management, use, development or division of the property often lead to disputes and tension among co-owners.
3. Delays and legal costs
Attempting to resolve disputes or exit a co-ownership can involve significant legal expenses and procedural delays, especially if court intervention is required.
Legal Options for Co-Owners in Cyprus
1. Amicable Partition/Distribution
Co-owners can voluntarily divide or distribute the property, provided the resulting division complies with applicable zoning and planning regulations (e.g. minimum plot sizes etc.) This is the most straightforward solution, however, in practice, it often faces obstacles due to disagreement by at least one co-owner.
2. Right of Pre-emption
If a co-owner wants to sell their share to a third-party, the other registered co-owners have the legal right to purchase it first at the agreed price, before the transfer is registered.
3. Compulsory Partition or Distribution
If no agreement is reached between the co-owners, any single co-owner has the right to request the Director of the Land Registry Department to proceed with a compulsory partition/distribution of the property to legally divide it or terminate the co-ownership.
4. Vertical or Horizontal Partition
Under certain conditions, co-owners may apply for a vertical partition of land or horizontal in the case of buildings.
5. Auction (or Foreclosure Sale) of Undivided Property
If a property cannot be physically divided (e.g., due to planning restrictions), a co-owner can request a certificate of indivisibility and apply for a public auction through the Land Registry. Proceeds are then distributed among co-owners based on their share.
How to Avoid Co-Ownership Problems in Cyprus
1.Buy Full Ownership
Whenever possible, buy the entire ownership of a property instead of shared portions to avoid future co-ownership complications.
2.Plan inheritance carefully
Instead of dividing property shares equally, consider more practical solutions to avoid future disputes.
3. Donations
It is wise to transfer whole share to each donee and in good time. Cypriot law allows the donor to retain lifetime rights of residence or usufruct, ensuring security even after the transfer.
4.Seek professional advice
Always consult experienced property lawyers or estate planners to navigate complex situations and make informed decisions.
Conclusion:
Co-owning property in Cyprus might seem fair, but it often creates disputes, legal issues delays, and financial losses. By using the available legal tools and seeking professional guidance, can avoid long-term problems and ensure their assets are used effectively.
For professional guidance tailored to your situation, contact our legal team today.
At Polycarpos Philippou & Associates LLC, we specialize in assisting clients with issues related to their properties.
Contact us today for a free consultation and let our experienced team guide you every step of the way.
