What is Joint Ownership in a Succession?
When a person dies and leaves several heirs, their assets are placed in joint ownership, meaning that heirs share property ownership without individual allocation. Each heir, called a joint owner, owns a share in the form of a quota. This situation is temporary and ends when the assets are divided.
Use of Joint Property
The use of joint property is governed by certain rules. You must obtain agreement from other joint owners or, in case of disagreement, intervention from the court president. If an heir uses joint property alone, they must pay compensation to the others, unless they decide otherwise.
Decision Making in Joint Ownership
- Decisions regarding joint property require agreements depending on the type of action:
- Conservatory acts: an heir can make decisions necessary for property preservation alone (repair, maintenance, etc.).
- Management acts: they require agreement from joint owners holding at least 2/3 of joint rights. This concerns current management or sale of certain assets to pay succession debts.
- Disposal acts: selling real estate generally requires unanimity, with exceptions (e.g.: a joint owner endangers common interest).
The Conventional Joint Ownership Regime
It's possible to establish a joint ownership agreement to organize asset management. This must be in writing and requires unanimous agreement from heirs, particularly for appointing an agent. It can be concluded for a renewable five-year period.
Exiting Joint Ownership
Any joint owner can leave joint ownership at any time, unless a judgment or agreement decides otherwise. Options include selling or giving their share to another joint owner or third party (with priority given to other joint owners), or dividing or selling the assets.
Thus, joint ownership is a transitional stage in settling a succession, allowing heirs to manage and share the deceased's assets while respecting specific rules to facilitate decision-making and asset management.
Succession: Understanding Joint Ownership
When you inherit property in a succession and are not the sole beneficiary, you find yourself in joint ownership with other heirs. But what does this mean concretely? How are decisions made regarding shared property? We'll explain.
What is Joint Ownership?
- Joint ownership is a legal situation that occurs after a person's death. If several heirs are involved, the deceased's estate enters joint ownership. This means assets are not immediately divided and belong collectively to all heirs. Each person's shares, called "quotas," are not physically individualized: everyone holds a fraction of the assets without being full owners.
The assets concerned by this situation are called "joint assets," and each heir, also called "joint owner," owns a portion of these assets, proportional to their quota. Joint ownership is by nature transitional, as it will end when the estate is definitively divided. Note that joint ownership only concerns situations where heirs hold rights of the same nature over the same asset, such as when two children inherit a property.
Use of Assets in Joint Ownership
Joint assets can be used, but under certain conditions. Agreement from all joint owners is necessary for using a joint asset. If an heir wishes to use an asset alone, they must obtain this consent or, in case of disagreement, request intervention from the judicial court president. Additionally, the joint owner who benefits alone from a joint asset must, unless agreed otherwise, pay compensation to other co-heirs.
It's also important to respect the asset's intended use. For example, a property inherited as a family residence cannot be used for commercial activity without prior agreement from other joint owners.
Decision Making in Joint Ownership
- Managing joint assets requires collective decisions. Depending on the nature of the acts to be performed, majority rules vary:
- Conservatory acts: these decisions, necessary to preserve assets (like urgent repairs), can be made unilaterally by a joint owner. For example, if an inherited house's roof needs repairs, one heir can act without consulting the others.
- Management acts: for current management acts, like renting or renewing a housing lease, agreement from joint owners representing at least two-thirds of joint rights is required. The 2/3 majority is calculated not by number of heirs, but by their respective shares of the assets. For example, a joint owner holding 50% of rights can, with another heir's agreement, obtain this majority.
- Disposal acts: for more important decisions, like selling real estate, unanimity is generally required. However, exceptions exist: if one heir endangers common interest, or is unable to express their will, the sale can be made with a 2/3 majority of joint rights, by judicial decision.
The Conventional Joint Ownership Regime
It's also possible to arrange joint ownership management rules by drafting an agreement between heirs. This type of agreement helps facilitate asset management and avoid deadlocks. The agreement must be in writing under penalty of nullity and requires unanimous agreement from all joint owners. A notary must intervene when real estate is involved.
This agreement notably allows designating one or more agents to represent all joint owners in asset management. It can be concluded for a five-year period, renewable, or for an indefinite period.
Exiting Joint Ownership
- Joint ownership is a temporary situation and it's possible to exit at any time, unless an agreement or judgment opposes it. Solutions for exiting joint ownership are varied:
- Share transfer: a joint owner can choose to sell or give their quota to another joint owner or outside person. However, other heirs have a preemption right and are priority for buying back this share.
- Asset division: joint owners can request asset division. This requires agreeing on asset distribution according to each person's quotas. If agreement isn't possible, selling the assets may be considered.
- Asset sale: if it's impossible or refused to divide assets, co-heirs can opt for selling the joint assets. The price obtained will then be distributed proportionally to each person's shares.
In conclusion, joint ownership allows heirs to temporarily manage the deceased's estate, pending definitive division. However, it imposes strict management and decision rules to preserve everyone's interests, while facilitating exit from this situation when an heir wishes.
Keywords:
joint ownership, succession