Co-ownership of property may be terminated in two main ways: by judicial or voluntary partition. Most often, co-ownership arises in cases of inheritance or upon the dissolution of a marriage. Co-ownership may also be established by operation of law, as in the case of the matrimonial community of property. If the co-owners are spouses, the termination of the joint property may also be effected during the marriage by means of a marriage contract.

When ownership of a given property is distributed among two or more persons, conflicts often arise. This makes the management and use of the property difficult. For example, in order to let a co-owned property under a rental or agricultural lease, the consent of the co-owners holding more than 50% of the ownership is required. Moreover, if a co-owner wishes to sell their share, they must first offer it to the remaining co-owners.

In cases of serious disagreement between the co-owners, where no agreement can be reached, judicial partition is often the only option. This, however, is a lengthy, expensive and complex procedure, particularly where one of the heirs is unavailable, for example on account of many years of residence abroad.

Voluntary partition, on the other hand, is considerably faster and requires lower costs for the termination of co-ownership.

Concluding a Voluntary Partition Agreement

The voluntary partition agreement is drawn up in written form and must be notarised. This agreement has the force of a notarial deed and may be concluded before any notary, regardless of the location of the properties, which is a great advantage.

The participation of all co-owners or heirs in the partition is mandatory. If any of them is represented by an authorised representative, the power of attorney must be notarised. Nevertheless, certain declarations must be signed personally by the co-owner, as they cannot be certified by an authorised representative, even if the latter is expressly authorised.

If not all co-owners participate in the partition, the voluntary partition agreement is null and void.

In a voluntary partition, each co-owner must necessarily receive a share — this is a condition for the validity of the partition. The share may comprise property, a monetary equalisation or other rights. Examples of this include:

  • the receipt of real estate;
  • a monetary equalisation, where there are no separate properties for all heirs or where a single property is partitioned;
  • an obligation of maintenance and care instead of the equalisation of a share, where the partition involves a parent and children;
  • the retention of a right in rem of use for life over a property that is given to another co-owner;
  • the retention of the right to rent instead of a monetary equalisation.

The co-owners have considerable freedom in distributing the shares. They may agree that one of them receives the property and pays off the remaining co-owners, or that those with larger shares pay a monetary equalisation to those with smaller ones.

The agreement may also include the distribution of only part of the co-owned properties.

The voluntary partition of a building, dwelling or other unit is possible only if the separated shares can be used independently.

The law does not permit the division of arable fields into parts smaller than 3 decares, meadows — below 2 decares, and vineyards or orchards — below 1 decare.

Required Documents

For the conclusion of a voluntary partition agreement, notaries require:

  • a document of title to the property (e.g. a notarial deed, a will, a court decision, a partition agreement);
  • a sketch of the property or a plan of a self-contained unit, and, in the case of the division of a property, a draft sketch and an approved architectural plan;
  • a tax valuation certificate;
  • a certificate of heirs, where the partition is between heirs;
  • a court decision on the dissolution of the marriage, if the partition is between former spouses;
  • declarations under Article 25(8) of the Notaries and Notarial Practice Act (ЗННД), under Article 264(1) of the Tax and Social Insurance Procedure Code, under Article 42(2)(2) of the Measures Against Money Laundering Act and under Article 66(2) of the Measures Against Money Laundering Act.
Registration of the Voluntary Partition Agreement

The voluntary partition agreement is registered with the Registry Office at the location of the properties. The registration has only a declaratory effect, as the co-ownership is terminated upon the signing of the agreement.

Should you require legal advice or assistance in connection with the partition of co-owned properties, please contact us on telephone 0887550706, e-mail: [email protected]