With the daily development of economic relations between people, cases of acquiring not only a separate real estate object, but also its share, are not uncommon.

What is meant by shared ownership?

A shared ownership is a movable orReal estate owned by several people, divided into specific shares of each of the owners. Such property entrusts to its owner not only the right to receive certain incomes or profits in relation to its share, but also imposes obligations on him to repay expenses in respect of its share.

The share ownership is usually expressed in percentage or share ratio (for example: 1/5 share of the house).

Acquisition of real estate, which is a shareproperty, at first glance, does not differ from the sale of real estate, in which one owner, however, it is only at first glance. Legislation stipulates the norms in connection with which the sale of shared ownership may be delayed or not taken place at all.

The norms of the Civil Codethe pre-emptive right to purchase a sold or replaced real estate object (house, dacha, garage, apartment, etc.). Such a right occurs only when a paid transaction is made, if the equity ownership is granted, the rule on preferential acquisition is not applied.

If one of the equity owners intends toalienate his share of property to an outsider, he must first inform about the alleged transaction of co-owners of this property, detailing the cost of the sale and its terms. After that, the remaining shareholders can either acquire the alienated stake, or refuse such an acquisition.

If any of the stakeholders seeks to buyowned by the Seller a share of the alienated real estate object, according to the conditions set by the Seller, to refuse the Seller is not entitled. In the process of acquisition, the equity ownership of such an interest-holder will increase with respect to other co-owners.

In the event that the buyer of the alienated real estate is a co-owner, and not an outsider, then it is not required to notify other co-investors on the law.

If the joint-stock company or co-ownersrefused to purchase the stake offered by him, the transaction can be executed with the prospective buyer. However, in order to avoid possible subsequent litigation or the recognition of the transaction as invalid, the Seller must notify the co-owners in a proper way by sending them a written notice.

Having received a written notice, a co-owner, notintent to acquire the proposed share, must formalize a written waiver of the pre-emptive right to purchase from a notary. Such a refusal must be executed before the transaction is concluded or immediately upon its completion.

When making a transaction, in which the objectis a shared ownership, except for the refusal of the right to purchase it is necessary to collect a standard list of documents: the passports of all participants in the transaction; documents confirming possession of real estate (certificate of inheritance, contract of donation, privatization, rent, purchase and sale, etc.); an extract from the Bureau of Technical Inventory for a part of immovable property; if a residential premise is sold, it is necessary to present a certificate confirming the presence / absence of registered persons in immovable property; all concomitant consent (consent of the spouse, family members, guardianship authorities).

If the object of the transaction is a part of the house with the land, it is necessary to take care not only of the properly executed documents for the part of the house, but also of the documents for the part of the land plot.