By Evi Cherouvim

In Cyprus, a significant portion of immovable property is jointly owned by two or more individuals. This usually arises through inheritance, equal-share donations, joint purchases and so on.

While co-ownership may seem fair and practical, in reality it often leads to serious complications including disputes, legal complications and financial losses.

The more co-owners involved, the more complex and challenging the situation becomes.

These issues are particularly common with inherited properties, when multiple heirs become co-owners. Instead of benefiting from their inheritance, families can find themselves entangled in costly and time-consuming legal battles.

Common problems

Disagreements among co-owners about how to use or develop the property often result in it remaining idle and unproductive, generating no income and possibly incurring costs.

Different views on management, use, development or division of a property often lead to disputes and tension among co-owners.

Attempting to resolve disputes or exit co-ownership can involve significant legal expenses and procedural delays, especially if court intervention is required.

Legal options for co-owners in Cyprus

Amicable partitionis the most straightforward solution,however, in practice, it often faces obstacles due to disagreement by at least one co-owner.

Ideally, co-owners can voluntarily divide or distribute the property, provided the resulting division complies with applicable zoning and planning regulations (for example there are minimum plot sizes).

In these situations, the right of pre-emption applies.If a co-owner wants to sell their share to a third-party, the other registered co-owners have the legal right to purchase it first at the agreed price, before the transfer is registered.

If no agreement is reached between co-owners, any single co-owner has the right to request that the director of the Land Registry proceed with a compulsory partition/distribution of the property to legally divide it or terminate the co-ownership.

Under certain conditions, co-owners may apply for a vertical partition of land or horizontal in the case of buildings.

If a property cannot be physically divided (for example due to planning restrictions), a co-owner can request a certificate of indivisibility and apply for a public auction through the Land Registry. Proceeds are then distributed among co-owners based on their share.

How to avoid problems

Whenever possible, buy the entire ownership of a property instead of shared portions to avoid future co-ownership complications.

Plan inheritance carefully. Instead of dividing property shares equally, consider more practical solutions to avoid future disputes.

Donation in an option.It is wise to transfer whole shares to each donee and in good time. Cypriot law allows donors to retain lifetime rights of residence or use of the property, ensuring security even after the transfer.

Always consult experienced property lawyers or estate planners to navigate complex situations and make informed decisions.

Co-owning property in Cyprus might seem fair, but it often creates disputes, legal issues delays and financial losses.

By using the available legal tools and seeking professional guidance, long-term problems can be avoided and it can be ensured that assets are used effectively.

Evi Cherouvim (LLB, LLM in International Commercial and Business Law) works at Polycarpos Philippou & Associates LLC, which specialises in assisting clients with issues related to their properties