In Cyprus, co-ownership (undivided ownership) typically arises when two or more people purchase property together or inherit it in equal shares. While often well-intentioned, especially in family contexts, co-ownership can lead to serious legal and practical challenges.
Key Issues in Co-Ownership
- Difficulty using, selling, or developing individual shares
- Disputes between co-owners over use, division, or sale
- Costly and time-consuming exit procedures
- Increased complexity when the number of co-owners grows (especially through inheritance)
What begins as a gesture of fairness—such as dividing assets equally among heirs—can result in deadlock, family conflict, and legal entanglements.
Legal Options to Resolve Co-Ownership
The Immovable Property Law, Cap. 224, provides several mechanisms:
- Friendly Partition: If all co-owners agree, the property can be legally divided (subject to minimum size rules).
- Compulsory Partition: If even one co-owner disagrees, another may apply to the Department of Lands and Surveys for a court-supervised division.
- Right of First Refusal: Before a co-owner sells their share to a third party, it must first be offered to the other co-owners.
- Public Auction of Indivisible Property: If the property cannot be divided, any co-owner may request a public sale via a Certificate of Indivisibility.
- Vertical Plot Division: Available in limited cases for splitting land plots into equal parts.
How to Avoid Co-Ownership Problems
- Parents: When gifting property, transfer whole shares to each child and retain a life interest if needed.
- Buyers: Prefer full ownership over partial shares, unless purchasing with a spouse or trusted partner.
- Heirs or Executors: Act early to divide inherited property, ideally by agreement, into whole and separate ownerships.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
