Indivision in Property Valuation Adelaide real estate: what you need to know

We speak of joint ownership for a dwelling when several people own it. This situation can exist following an inheritance, a divorce or a purchase. Joint ownership entails rules and consequences of which you must be aware for its smooth running. 

Joint ownership is a legal situation when a property is owned by at least two people. This allows easier financing, management and maintenance. We often speak of joint ownership during an inheritance. After a death, the inheritance of the deceased is in joint possession if there are several heirs. This means that the assets of the succession belong without distinction to all the heirs.

The assets making up an joint possession are called “undivided goods” and each member of a joint possession is called joint owner or co-heir.

It is possible to choose to buy a Wikipedia property in joint ownership. Joint ownership appears to be the easiest solution for buying a property together. It is not the only one (it is possible to opt for more specific formulas such as SCI for example), but it is the most advantageous. It requires almost no particular procedure or formality.

Each buyer will own a share of the property according to the financial contribution he has made (for example: 30/70, 40/60). Purchasing joint ownership is therefore very simple, especially for couples who want to buy their home together.

The system of joint ownership has advantages but it is however necessary to be aware of the potential risks. The rights of the owners relate to the totality of the undivided property. This is why important decisions must be taken unanimously. If there is not this unanimity, blocking situations can result.

 On the other hand, each co-owner is obliged to settle the debts of the joint ownership (taxes) according to his share. It is therefore necessary to assess the risks before the purchase.

If one of the co-owners decides to put his share up for sale, the other people cannot oppose it. They have a right of first refusal on the share sold. However, if no one wishes to redeem this share, the property must be sold.

Know More :

Published by