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Termination of Real Property Co-ownership and Undivided Property Co-ownership Lawyers

In the field of family and inheritance law, the termination real property co-ownership (condominio) and the termination of undivided co-ownership (proindiviso) are legal processes that can be complex and often require the intervention of specialised lawyers. Termination of real property co-ownership is the termination of co-ownership of a real estate property, while termination of undivided co-ownership refers to the dissolution of co-ownership of any shared property.

At Winkels Abogados we are specialised in the termination of real property co-ownerships and the termination of undivided property co-ownership in Madrid, and we offer a comprehensive service to resolve these situations efficiently and fairly. As legal professionals, we have in-depth knowledge in the field, which allows us to advise on the best way to proceed according to the specific circumstances of each case. The importance of having lawyers specialised in this area lies in the complexity of the legal processes and the need to ensure that all co-owners are treated fairly and equitably.

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Termination of Real Property Co-ownership and Undivided Property Co-ownership

What is the termination of a real property co-ownership?

Real property co-ownership or undivided property co-ownership are both legal concepts related to the right of ownership over an asset, which implies that one person has the right of ownership over that asset only partially, sharing the ownership with other people. Jointly-owned property (bienes gananciales) acquired during the marriage, for example, once divorce proceedings begin, is subject to the termination of real property co-ownership or undivided property co-ownership.

In simple terms, the termination of real property co-ownership is the process by which the co-ownership situation over a property is terminated, so that each co-owner obtains his or her corresponding share or a compensation agreement is reached. This process can be carried out amicably or, in cases of disagreement, through judicial intervention. Real property co-ownership termination lawyers play a crucial role in advising and guiding the parties involved to ensure that the process is conducted in a fair and legal

Termination of Real Property Co-ownership and Undivided Property Co-ownership

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Termination of Real Property Co-ownership and Undivided Property Co-ownership

Lawyers specialised in the dissolution of real property co-ownerships in Madrid

At Winkels Abogados, we are specialists in the dissolution of real property co-ownerships and the termination of undivided property co-ownership in Madrid. Our experience in the field of family and inheritance law allows us to offer a complete and personalised service to our clients. We understand that each case is unique and, therefore, we adapt our legal strategies to the specific needs of each client.

Our approach is based on the peaceful resolution of disputes and the search for beneficial agreements for all parties. However, when it is not possible to reach an amicable agreement, we are prepared to represent our clients in court in order to protect their rights and interests. We have a team of lawyers specialised in the termination of real property co-ownerships who have in-depth knowledge of the legislation in force and extensive experience in the management of these processes.

Furthermore, at Winkels Abogados, we are committed to maintaining clear and constant communication with our clients, explaining every step of the process and ensuring that they understand their rights and options. We know that real property co-ownership termination can be a stressful and complicated process, so we aim to make it as simple and smooth as possible for our clients.

Termination of Real Property Co-ownership and Undivided Property Co-ownership

Types of Real property co-ownership Termination

We can differentiate between two types of termination of joint property, depending on whether the joint property is divisible or indivisible.

In the first place, if it were a divisible asset, the termination would consist of an equitable distribution among the co-owners of the common thing. To illustrate this with an example, we use the money included in a bank deposit.

In this type of case, the simplest way is to divide the money between the co-owners according to the share held by each one. Consequently, the law states that if a common property can be divided without losing its value, the undivided property co-ownership can also be divided. Likewise, lots of assets of similar value are a case similar to that of a bank deposit.

Secondly, if we talk about indivisible property, this is defined as that which, if it were to be partitioned, would lose its value. In this type of termination of real property co-ownership, it is most common to find ourselves faced with jointly owned assets in scenarios of inheritance, separation and divorce. See a undivided property co-ownership termination of the second residence of the married couple.

In such cases, it is advisable to sell the property to a third party or for one of the co-owners to buy the share from the other. If no agreement is reached between the co-owners, the property can be auctioned.

Furthermore, it is important to bear in mind that the termination of real property co-ownership not only refers to real estate, but also to other types of assets such as vehicles, bank accounts or investments.

Each case must be analysed individually to determine the best way to proceed, always with the aim of protecting the rights of the co-owners and ensuring a fair and equitable resolution.

Termination of Real Property Co-ownership and Undivided Property Co-ownership

Tax advantages of the dissolution of real property co-ownerships

The dissolution of a real property co-ownership entails a series of tax advantages that can be beneficial for the co-owners. Some of the main advantages are listed below:

  • Exemption from Transfer Tax (ITP): The termination of a real property co-ownership is not subject to ITP, which represents a significant saving compared to other forms of transfer of property.
  • Reduction of Stamp Duty ( AJD): In most cases, the dissolution of a real property co-ownership is only subject to payment of the AJD, which is usually lower than the Moreover, if the dissolution takes place in the context of a divorce or inheritance, additional reductions or exemptions may apply.
  • Benefits in the IRPF: The termination of real property co-ownership can have positive implications in the IRPF declaration, as it is not considered a transfer of assets, thus avoiding the generation of capital gains or losses.

These tax advantages make real property co-ownership dissolution an attractive option for co-owners who wish to end their co-ownership situation efficiently and economically. However, it is essential to seek the advice of lawyers specialised in real property co-ownership dissolution to ensure that all legal requirements are met and that maximum advantage is taken of the tax benefits available.

Termination of Real Property Co-ownership and Undivided Property Co-ownership

Causes causing the termination of undivided property co-ownership

In addition to the general causes for the termination of ownership, the undivided property co-ownership may be dissolved for the following reasons:

  • Consolidation: This occurs when one co-owner wants to end the undivided property co-ownership by repurchasing parts of the property belonging to the remaining co-owners. It can also happen that a third party takes over the entire share and acquires full ownership of the former common In this way, what was previously divided in the hands of different co-owners will now only be the property of the one who has paid all the shares or owns all the percentages of the common thing.
  • Renunciation of the co-owners from the common thing: In this case, any co-owner may decide to renounce his or her share in the common thing. No co-owner can prevent this from happening. In this way, he may transfer it to a third party or to one of the other co-owners if they are interested.
  • Division of the common property If the property is divisible, it shall be divided according to the percentage of the shares held by each co-owner. However, if the property is indivisible, it will have to be divided by agreement or by judicial means. These means will be discussed in more detail below.

These cases are common in inheritance, divorce and separation scenarios, and may require the intervention of real property co-ownership termination lawyers to ensure that the process is carried out in a fair and legal manner. The experience and knowledge of lawyers in this field are essential to avoid conflicts and ensure an equitable resolution for all parties involved.

Termination of Real Property Co-ownership and Undivided Property Co-ownership

Before which courts can the real property co-ownership be terminated, and who has jurisdiction?

As far as competition is concerned, we can distinguish between two scenarios:

If the undivided property co-ownership results from the existence of a joint ownership of acquisitions (sociedad de gananciales) that survived the divorce, the liquidation shall be handled by the same court that issued the divorce decree. The spouses may initiate proceedings for the division of the property or properties held in undivided co-ownership..

If the undivided property co-ownership has arisen as a result of the separation of property Spanish regime (separación de bienes) during the marriage, there will be two options. The general rule of jurisdiction will apply if the property is jointly-owned property (bien ganancial), but in the case of claims of payment, the courts of the defendant's domicile will have to be seised.

These assumptions determine before which courts the termination of the real property co-ownership must be processed, and it is crucial to know this information in order to proceed correctly and efficiently. Lawyers specialised in the termination of real property co-ownerships, such as those at Winkels Abogados in Madrid, are familiar with these procedures and can guide their clients through the judicial process.

Termination of Real Property Co-ownership and Undivided Property Co-ownership

Consequences of the termination of an undivided property co-ownership

The parties concerned will have to take into account:

  • Taxes: It is important to remember that terminating an undivided property co-ownership is subject to AJD (stamp duty). If it is sold to a third party, it will have to pay ITP (Transfer Tax).
  • Owners or third parties: Everything will depend on the type of agreement that has been reached. It is advisable to have a specialist analyse the agreement, as well as the stipulations regarding the use and enjoyment of the undivided property co-ownership.
  • Community property: In a marriage where there have been children, the termination of the real property co-ownership will not affect the right of use and enjoyment of the children and the custodial parent.

Thanks to our specialisation in divorce and separation cases, usually linked to the termination of joint- ownership, Winkels Abogados can advise you in order to guarantee an advantageous process.

We answer your questions

Frequently asked questions regarding the termination of undivided property co-ownership or real property co-ownerships

Yes, it is possible. However, in these cases, the bank must agree to the termination and the new distribution of the debt. It is essential to have the advice of a lawyer to negotiate with the bank and ensure that all terms are clear and fair for both parties.

Hiring Winkels Abogados ensures that you have a team of experts in the termination of real property co-ownership and undivided property co-ownership. Our extensive experience in family and inheritance law allows us to offer a personalised and efficient service, ensuring that each client receives the best legal advice and representation in Madrid.

It will be the co-owners of the common property who can cause the termination of the real property co-ownership. This is an inalienable right from which situations such as those explained below may arise. The co-owners can reach an agreement to divide the property or request judicial intervention if no consensus is reached. The advice of specialised lawyers is essential to ensure that the process is carried out fairly and in accordance with the law.

Termination can be achieved either by agreement or through the courts.

Termination by agreement: Termination by agreement may consist of the reallocation of the property by instalments if it is indivisible, the award to one of the co-owners with financial compensation to the other co-owners or the sale of the entire property to a third party. On the other hand, if the property is divisible, it will be divided equitably.

Termination by judicial means: If it is impossible to extinguish the undivided property co-ownership voluntarily, it can be terminated by means of judicial proceedings. Depending on the type of undivided property co-ownership, it is necessary to take a matrimonial property regime liquidation procedure or a judicial division of inheritance procedure or a division of common property procedure, depending on the origin of the undivided property co-ownership situation. If the property is divisible, it will be divided. If it is indivisible, it will be sold as a whole and a price will be obtained by means of a judicial auction. This must be analysed by a lawyer in accordance with the provisions of the LEC.

In summary, the termination of real property co-ownership and undivided property co-ownership is a legal process that requires the advice and intervention of specialised lawyers to ensure a fair and equitable resolution. At Winkels Abogados in Madrid, we are committed to offering the best service and advice to our clients, guiding them through every step of the process and ensuring that their rights and interests are protected.