Partition of Real Property: How the Proceedings Work and What to Expect

When several persons jointly own a real property and are unable to reach an agreement on its use or distribution, it often becomes necessary to initiate partition proceedings.Partition may be carried out either voluntarily by agreement between the co-owners or through court proceedings where no agreement can be reached. In this article, we will outline the main stages and specific features of real property partition proceedingsin order to help you be properly prepared for such a case.

What Types of Property Partition Exist?

The partition of real property may be carried out in two ways:

• Voluntary partition – achieved through an agreement between all co-owners, executed in notarised form. This is the fastest and most cost-effective option, as it saves time, court expenses, and reduces tension between the parties.
• Judicial partition – where voluntary agreement cannot be reached, any of the co-owners has the right to initiate court proceedings for judicial partition.This process is conducted in accordance with strictly defined statutory rules.

How Do Judicial Partition Proceedings Take Place?

1. First Phase – Admission of the Partition

At this stage, the court examines whether the partition is admissible and determines which properties are subject to partition, who the co-owners are, and what shares each of them holds in the property. During this phase, the parties may dispute the existence of co-ownership rights or the size of the respective shares. If any co-owner claims to hold a larger share, this claim is examined precisely at this stage of the proceedings.

The court’s decision admitting the partition resolves the following issues: which properties are to be partitioned, who the co-partitioners are, and what share each of them holds. The court decision rendered in the first phase of the partition proceedings forms the basis for conducting the second phase of the partition – namely, the actual execution of the partition. Once this decision enters into force, the court schedules the commencement of the second phase of the judicial partition proceedings ex officio.

2. Second Phase – Execution of the Partition

After the court has ruled on the issues addressed in the first phase of the partition proceedings, the process moves on to the execution of the judicial partition. It is at this stage that matters relating to the settlement of accounts between the co-partitioners are resolved.

• If the property is capable of physical division (for example, agricultural land), a partition plan is prepared, and the newly formed properties resulting from the division are allocated among the co-owners.
• If the property is not capable of physical division (for example, an indivisible apartment within a building), and if one of the co-owners meets the statutory requirements and expresses a wish to have the indivisible property allocated to them, the court may award the property to that co-owner. In such case, the co-owner is obliged to compensate the remaining co-owners by paying the value of their respective shares, thereby becoming the exclusive owner of the property. If this does not occur, the property may be offered for sale at a public auction, and the proceeds obtained are distributed among the co-partitioners in proportion to their respective shares.

What Documents and Costs Are Involved in Partition Proceedings?

To initiate judicial partition proceedings, the following documents are required:

• a certificate of heirs (in the case of inherited property);
• title deeds and other documents evidencing ownership;
• a cadastral sketch or plan of the property;
• expert valuations and opinions, where appointed in the proceedings if necessary.

Judicial partition proceedings involve costs related to court fees, expert reports, and legal fees. It is considered good practice to consult a lawyer specialising in real estate or inheritance law in orderto minimise the risk of errors and to ensure effective protection of your interests.

What Are the Main Issues in Property Partition Proceedings?

Property partition is often accompanied by disputes and complications, such as:

• disputes concerning improvements made to the property or common expenses paid by one of the co-owners;
• disagreements regarding the valuation of the property;
  
• disputes between heirs or co-owners with conflicting interests.

How Can You Achieve the Best Outcome in Partition Proceedings?

In order to make the partition process as smooth and effective as possible:

• first attempt a voluntary partitionwith the assistance of a lawyer;
• in the case of judicial partition, gather all necessary documents and seek professional legal advice;

be prepared for a lengthy procedure, especially where the property is not capable of physical division.