Before buying or inheriting real estate, it is important to understand the difference between co-ownership and joint ownership. Your rights and obligations as an owner, as well as the way you manage the property, depend on this distinction.
What is co-ownership?
Co-ownership exists when several persons own the same property, but their shares are precisely defined. Each co-owner has an ideal share expressed as a fraction or percentage.
Example:
If three relatives inherit an apartment and each is registered as a 1/3 owner, they are co-owners.
How does co-ownership arise?
Co-ownership may arise from:
- law (inheritance),
- legal transaction (purchase agreement, gift, exchange),
- court decision or testament.
If the shares are not determined, they are presumed to be equal.
What is joint ownership?
Unlike co-ownership, in joint ownership shares are not determined. This means all joint owners have rights to the entire property until shares are specifically allocated.
The most common example of joint ownership is property acquired during marriage or a common-law partnership. Everything acquired during this period is considered joint property until otherwise divided.
Example:
An apartment bought during marriage is considered joint ownership, even if no fractions (½ + ½) are shown in the title deed.
Conclusion and advice for property owners
- Co-ownership means each owner has a defined share (e.g. 1/3, 1/2).
- Joint ownership means shares are undefined, and everyone has equal rights until division.
If you are unsure how your property is registered or how to properly regulate ownership, contact our agency Kolašin Property for legal advice and brokerage.
