Dissolution (division) of co-ownership community of real estate

DISSOLUTION (DIVISION) OF COO-OWNERSHIP COMMUNITY OF REAL ESTATE

A large number of people inherit real estate from their legal ancestors in certain shares with third parties. As a rule, co-ownership of real estate by several co-owners often leads to the impossibility of agreement on the division of the real estate and/or the manner of its use.
In this case, the parties have the option of agreeing on the division of the real estate by entering into an appropriate legal transaction by which the real estate is divided among the co-owners, as well as the possibility of dissolving the co-ownership community through the court.

Namely, in a large number of cases when it is not possible for the co-owners to agree on the division of the real estate, the parties initiate the process of dissolution of the co-ownership community before the court.
The institution of dissolution of the co-ownership community is prescribed by the provisions of the Law on Property and Other Real Rights (Narodne Novine No. NN 91/96, 68/98, 137/99, 22/00, 73/00, 129/00, 114/01, 79/06 , 141/06, 146/08, 38/09, 153/09, 143/12, 152/14, 81/15, 94/17).

The dissolution of the co-ownership community of real estate is possible by dividing the real estate geometrically-physically, if this is possible according to the properties of the real estate, or by selling the real estate through a public auction.
In case of geometric division of the real estate, the real estate is divided geometrically among the co-owners in the case of agricultural or construction land.
The real estate is divided among the co-owners in such a way that the part of the real estate that belongs to them in separate possession and ownership corresponds to the size of the co-ownership share they have in the real estate in co-ownership.

In the division of real estate on which buildings are built, the distribution of co-ownership is determined by the condominium of the real estate, whereby a part or parts of the real estate must have the characteristics of representing a special usable entity that can function separately from the remaining part of the real estate.
The co-ownership share of the co-owner to whom the separate possession and ownership of a part of the real estate belongs must be adequate in such a way that it is sufficient to represent a sufficient share of co-ownership in relation to the remaining part of the real estate in order to acquire the ownership of a separate part for the whole.

The decision on the method of dissolution of the co-ownership community is made by the court on the basis of the presented evidence, primarily the expertise of a permanent court expert of the appropriate profession who determines what types of dissolution are possible.

If geometric division is not possible, the court will determine the division by selling the real estate at a public auction, and distribute the resulting amount to the co-owners according to their co-ownership shares in the real estate.