How to File a Lawsuit for the Dissolution of Co-Ownership?
This article provides general information. Legislation, time limits and amounts may change over time; obtain an up-to-date assessment of your specific situation.
Multiple persons holding rights over an inherited house, plot of land, or other immovable property can lead to disputes regarding the use and sale of the asset. When one of the co-owners wishes to terminate the co-ownership, filing a lawsuit for the dissolution of co-ownership may come into consideration if the conditions are met.
Attorney Aylin Esra Eren emphasized that in these lawsuits, the ownership structure and the claim must first be determined correctly.
What is a lawsuit for the dissolution of co-ownership?
A lawsuit for the dissolution of co-ownership aims to terminate the common ownership relationship over a movable or immovable asset. The fact that the immovable property was acquired through inheritance does not mean that the lawsuit must necessarily be filed as a lawsuit for the distribution of the entire estate. The claim may relate solely to terminating co-ownership in a specific immovable property.
Which procedures must be carried out before filing a lawsuit?
First, an up-to-date land registry record, the identity and address details of the co-owners, and documents showing how the co-ownership was formed must be prepared. If the property was transferred through inheritance, the certificate of inheritance and transfer records may also be of importance.
In lawsuits for the dissolution of co-ownership, an application to the mandatory mediation process must, as a rule, be made prior to filing a lawsuit. If no agreement can be reached in mediation, a lawsuit may be initiated before the competent and authorized court together with the final mediation report.
Does the court necessarily order the sale of the property?
No. The court evaluates whether the property can be divided in kind and whether such division would lead to a loss of value. If partition in kind is not possible or not deemed legally appropriate, dissolution of co-ownership by way of sale may be ordered. The proceeds of the sale are distributed in proportion to the shares of the co-owners.
In some cases, the parties can agree to allocate the property to one co-owner and compensate the other co-owners with a monetary payment. However, the method applied by the court is determined according to the characteristics of the property and the relevant statutory conditions.
Who can file the lawsuit?
As a rule, any co-owner with a legal interest in terminating the co-ownership can file the lawsuit. The lawsuit is directed against the other relevant co-owners. It is important that all co-owners are properly named as parties and that service procedures are conducted in accordance with procedural rules.
Eren stated, “The aim in a lawsuit for the dissolution of co-ownership is not always the sale of the property; primarily, the possibility of division in kind and the rights of the parties are evaluated. Fulfilling the mediation requirement before filing the lawsuit and preparing the land registry records accurately are important for the smooth progression of the process.”