DEFINITION:
Communal Estate is a legal situation arises from the multiplicity of owners each of whom has the right to a share attributed to the whole Property.
REASONS AND SOURCES:
Communal Estate is usually arises from: 1. Inheritance after the death of the property owner who leaves behind him multiple heirs, whom each one of them inherits, a proportion of the property, 2. Buying common property where multiple of people buy a property in common, or 3. Due to a Will.
COMMON OWNERS’ RIGHTS AND WHO CAN END IT?
Each Partner in the Property, regardless of the amount of shares he owns, has the right to Use, Exploit and Dispose of any of his shares in the property. However, the right of each partner is restricted to the rights of the other partners, so that its use should not result in infringements of the rights of the other partners.
Common Ownership usually creates problems concerning the use and exploitation of the property that leads to conflicts among partners where with such conflicts will be hard for any Partner to exploit or use his property, so it become more appropriate to end the common property status where each partner will have the chance to benefit from his share without the interference of others and shall protect his rights from any infringements.
In fact, common ownership is generally undesirable because of: a. Differences of partners’ mentality, b. Difference in understanding in managing their interests, c. Limitation of the use of rights, and d. All the problems and disputes that might cause among the partners.
For the these reasons and more, Communal property is considered by the legislator as a temporary condition of ownership and gave each shareholder the right to get out of it at any time, regardless of the amount of his shares contributed.
Ways to remove it:
Common Ownership can be removed or ended by dividing the property. The division is of two kinds, Consensual or Judicial.
If the owners in Common Property could not agree on dividing the property consensually, and any of them decided to get out of the Communal Status, or among the partners were an incapacitated or under age or absent partner and the judge refuse to rectify the Consensual Division Agreement, the judicial division shall take place by filing a case before the competent court against all other partners and rights’ holders in the property, that results by either dividing the property if possible or auctioning it and distributing its value proportionally among the partners.
Contact us to assess the status of your common ownership in a property and to advise you how to remove it. We have a full team of experts in the field who can be trusted to help you getting out of such communal estate status.
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