Co-ownership and joint ownership: what is the difference

Co-ownership and common ownership are two ways in which multiple persons simultaneously hold ownership of the same real estate, but they differ significantly. In co-ownership, each co-owner has a precisely defined ideal share (for example, 1/2 or 1/3) which they can dispose of independently. In common ownership, the shares are not numerically determined in advance, and common owners generally decide on the property together. Co-ownership is the regular form, while common ownership is an exception that exists only when explicitly stipulated by law — most often in the case of a community of heirs. In doubt, the law presumes co-ownership.

When you see two or more names on a title deed, the first question is which form of common ownership it is. Co-ownership and common ownership sound similar at first glance, but the difference between them directly determines what each owner can do alone and what only with others — and thus, how such a property can be bought or sold at all. From working with clients, we see that this difference most often arises in three situations: when buying inherited property, when selling property that is marital property, and when resolving relationships among family members who jointly hold a single property. In this guide, we explain the difference as regulated by the Act on Ownership and Other Real Rights (NN 91/96 with amendments) and what it specifically means for you as a buyer or seller.

Contents

• Co-ownership and common ownership — the basic difference
• When co-ownership arises, and when common ownership
• Disposing of a share: what you can do alone, and what you cannot
• Marital property and inheritance — the most common dilemmas
• What to check in the land register before buying
• Frequently asked questions

Key insights

• A co-owner has a precisely defined ideal share and disposes of it independently; a common owner does not have a pre-determined share and decides together with others.
• Co-ownership is the regular form of ownership by multiple persons, and common ownership exists only when explicitly stipulated by law.
• In doubt, the law presumes co-ownership.
• Marital property is, according to the current Family Act, co-ownership in equal parts, not common ownership.
• Inherited property, until the completion of probate, is the common ownership of the heirs.

Co-ownership and common ownership — the basic difference

The basic difference lies in whether the shares are determined. Co-ownership is a form in which each co-owner has their ideal share — a calculated, numerically expressed share in the entire property, such as 1/2, 1/3, or 3/4. This share is not a physically separated space in an apartment, but a share in the right of ownership of the entire thing. Common ownership, on the other hand, is a form in which several persons (common owners) have ownership of the same thing, but their shares are not numerically determined in advance — they are merely determinable and are established subsequently, when the reason for it arises. The law clearly defines the relationship between these two forms. The Act on Ownership and Other Real Rights, in Article 57, stipulates that a thing can be in common ownership only if it is explicitly determined by some law, thereby giving co-ownership the role of the regular, main form of ownership with multiple holders. Common ownership is an exception. For this reason, the same article adds a rule for disputed cases: if it is doubtful whether persons are involved in co-ownership or common ownership, it is considered to be co-ownership.

Professional tip: When you see multiple owners on an advertisement or in documents, ask if an ideal share is listed next to each. If so — it's co-ownership and each share has its "master". If the shares are not listed, check the legal basis before entering into negotiations.

When co-ownership arises, and when common ownership

Co-ownership arises in the vast majority of cases when several persons jointly acquire real estate — for example, when two people buy an apartment together and determine in the contract and in the land register who holds which part. It also arises from the division of previously unified ownership into ideal shares. Since it is the regular form, co-ownership is the "default state" when the law does not stipulate otherwise. Common ownership arises only in situations explicitly determined by law. The most important and most common example in practice is the community of heirs: from the moment of the deceased's death until the final inheritance decree, the inherited property is the common ownership of all heirs. Only by division, i.e., by the inheritance decree, is this community transformed into co-ownership of specific ideal shares or into ownership of individual things. For everything not specifically regulated concerning common ownership, the law refers to the appropriate application of rules on co-ownership.

Professional tip: If you encounter a property that is "in inheritance," do not view it as regular co-ownership. Until the completion of probate, there is not one interlocutor with their own share, but a community of heirs who decide on everything together.