An apartment inherited by siblings, land bought with a partner, or the apartment of a separated couple. As long as everyone agrees, co-ownership works. When one wants to sell and the other does not, partition proceedings (pirukh shituf) come into play.
Can a co-owner be forced to sell?
Under the Land Law, each co-owner may generally demand partition at any time. Without agreement, a claim is filed in court. The court has discretion to refuse a request filed in bad faith, and there are special cases, for example a family residence with minor children.
How is partition carried out?
- Physical division: when the property can be divided physically and in planning terms, such as a large plot.
- Sale: when division is impossible or would cause significant loss, as with an apartment. The court usually appoints a receiver who sells the property competitively and divides the proceeds.
- Buyout by one co-owner: sometimes one co-owner prefers to buy out the others, which may be agreed before proceedings.
Which court?
For property registered in the Tabu, usually the Magistrate’s Court where the property is located. When the co-owners are family members, proceedings are usually in the Family Court. For unregistered property, jurisdiction also depends on value. See rights in a property not registered at the Land Registry.
Agreement is better
A receivership sale involves costs and time, and sometimes a price below market. In many cases it is better to reach a sale agreement or a buyout with legal support, and keep court as a last resort.
Where do you go from here?
Every deal and every property is different, and a small detail in a contract or registration can be worth a lot of money. At Paz Israel & Co. Law Office we support buyers, sellers, landlords and property owners, from the first check to registration at the Land Registry. For more information see our real estate lawyer page, or contact us to schedule a meeting in Tel Aviv, Jerusalem or Modi’in.
This article provides general information, is correct as of the time of writing, and does not constitute legal or tax advice or a substitute for reviewing your specific circumstances.