WHAT IS THE PURCHASE : THE PRINCIPLE OF PURCHASE ?

The joint purchase is the most appropriate way to purchase a property shared by two or more owners. This is the least restrictive formula among all those used for this action. However, it has drawbacks and risks that deserve to be considered.


WHAT IS THE PURCHASE :  THE PRINCIPLE OF  PURCHASE ?
WHAT IS THE PURCHASE :  THE PRINCIPLE OF  PURCHASE ? 


THE PRINCIPLE OF INDIVISIONAL PURCHASE

There are several formulas that can be adopted when buying a property to two or more owners.

Commercial real estate company or SCI, tontine, or indivision are all used for the same purpose.

Indivision turns out to be the simplest formula . It can apply to any type of real estate purchase.

The property can be divided equally or not. Indeed, the indivision is applied by default if the buyers do not decide to adopt the SCI. The rights of each buyer are attributed to them upon purchase of the property.

In indivision, the buyers are called co-indivisaries. Each buyer acquires a share of the undivided property. This share generally corresponds to the contribution of the co-indivisaire in the financing of the purchase.

 The co-owners also hold identical shares if they are not mentioned in the sales contract. They have the same rights of management of the property.

THE ADVANTAGES AND DISADVANTAGES OF THIS OPERATION


In terms of advantage, the purchase in joint ownership is a simple and practical operation for the acquisition of a property in couple or in group.

When joint ownership is chosen by default, it does not involve any particular formality. Whether during the purchase or during indivision, there is no cost or delay .

However, risks may arise with this method of real estate acquisition. These must be anticipated before the acquisition of the property so that no problem occurs in its management.

 If a disagreement arises between the co-owners, it may be difficult to continue the management of the property and reach an agreement in the decisions. In the case of a death of one of the co-indivisaries, the others will not inherit shares of the deceased .

All rights in the deceased co-indivisary's share will accrue to his heirs.

GOOD ADVICE TO ENSURE THE GOOD MANAGEMENT OF AN INDIVISION


In order to avoid any conflict between the co-indivisaries, it is important to provide for the management of undivided ownership.

An indivision agreement drafted in the presence of the notary can be used to reshape certain rules. Thus, the situation of each co-indivisaire can be considered and the rules will be adapted.


Co-owners may also delegate the management of the property  to a person who is or is not part of the undivided ownership. The only condition being that this administrator of the property has 2/3 rights to take care of it.

This indivision agreement may include the terms of management, succession and sale of the property from the date of acquisition.

 In the case of a deceased co-indivisaire, the heir may be designated from among the co-indivisaries or not according to the convention established from the beginning of the joint purchase.

The indivision agreement is designated as the element that facilitates the management of the undivided property.


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