On the property market you will often come across houses, semi-detached houses, terraced houses or family homes held in undivided co-ownership. Although these properties are often available at a more favourable price than condominium units or properties with their own separate land registry number, buying them requires increased care.<\/p>\n\n\n\n
Buying a property in undivided co-ownership is not in itself a problem, but it is important to be aware that special legal rules apply to such properties. A thorough legal review can prevent many later conflicts and inconveniences.<\/p>\n\n\n\n
In the case of undivided co-ownership, the property appears in the land registry under a single land registry number and has several owners. The co-owners hold specified ownership shares, but the land registry does not separately record which part of the property is used by whom.<\/p>\n\n\n\n
In practice, two or more residential buildings may have been built on one plot, or a larger family house may be used as several independent dwellings, while legally the property still appears as a single property.<\/p>\n\n\n\n
One of the most important documents in undivided co-ownership is the use agreement.<\/p>\n\n\n\n
In it, the co-owners set out which parts of the property each of them uses exclusively, and which areas remain in common use.<\/p>\n\n\n\n
A proper use agreement typically contains:<\/p>\n\n\n\n
If there is no proper use agreement, serious disputes may later arise between the co-owners.<\/p>\n\n\n\n
As a general rule, the co-owners have a right of pre-emption.<\/p>\n\n\n\n
This means that the seller may sell their ownership share to a third party only if the other co-owners do not wish to exercise their right of pre-emption.<\/p>\n\n\n\n
In practice, when drafting the sale and purchase agreement it must be examined whether the statutory conditions relating to the exercise of the right of pre-emption have been properly met.<\/p>\n\n\n\n
A breach of these rules can even lead to the transaction being challenged later.<\/p>\n\n\n\n
In the case of bank financing, stricter requirements generally apply to properties held in undivided co-ownership.<\/p>\n\n\n\n
Financial institutions often require:<\/p>\n\n\n\n
During the credit assessment the bank examines the legal position of the property in detail, so it is advisable to clarify these questions before the purchase.<\/p>\n\n\n\n
Before buying a property in undivided co-ownership, it is particularly advisable to check:<\/p>\n\n\n\n
In many cases, reviewing the documents alone can reveal circumstances that may affect the purchase decision or the value of the property.<\/p>\n\n\n\n
The sale of properties<\/a><\/strong> held in undivided co-ownership is generally more complex than buying a property with its own separate land registry number<\/a><\/strong>.<\/p>\n\n\n\n