Separation of co-owned real estate refers to the division of real estate originally enjoyed by two or more co-owners into independent parts according to a certain proportion or method. The method of dissolution can be either physical division or value division. Physical division refers to the division of the property entity, while value division is the distribution of the value of the property according to an agreement between the co-owners or the law.
Taking a property owned by a husband and wife as an example, suppose the couple buys a property worth $1 million during their marriage and registers it as co-ownership. Later, due to the breakdown of the relationship, the parties decided to divorce and divide the property. In this case, they need to do a partition of the jointly owned property.
According to the agreement of both parties and the provisions of the law, they can choose the following ways to dissolve the property:
Physical division: If the property can be physically divided (e.g. a multi-storey building), the parties can negotiate to determine their share. For example, one party can get a portion of a floor or room in a house.
Value splitting: If a property cannot be physically divided or if both parties agree to a value split, the property can be appraised by an appraisal agency to determine its market value. The parties can then divide the value of the property according to a certain percentage. For example, if the parties reach an agreement, one party can get 60% of the value of the property, i.e., $600,000, while the other party gets the remaining 40% of the value, i.e., $400,000.
Negotiation**: The two parties can also negotiate the property** and distribute the proceeds from the sale of the house according to a certain percentage. For example, the two parties can negotiate to distribute the property at a rate of 1 million yuan and 50% of the sales proceeds.
In the process of dissolution of a co-owned property, the following regulations and legal bases need to be observed:
Marriage Law of the People's Republic of China: This law stipulates the basic principles and systems of the marital property system, including the recognition and disposal of jointly owned property. In the event of a divorce, the spouses shall disown the jointly owned property in accordance with the law.
Property Law of the People's Republic of China: This law stipulates the basic principles and systems of property rights, including the establishment, alteration and extinction of property rights. In the process of property dissolution of jointly owned real estate, the provisions of the Property Law should be followed to ensure the legality and validity of the property dissolution.
Contract Law of the People's Republic of China: This law regulates matters such as the formation, performance and modification of contracts. In the process of property separation, if a contractual relationship (such as a house purchase contract, a loan contract, etc.) is involved, the provisions of the Contract Law should be observed.
Measures for the Administration of Real Estate Appraisal: This Measures stipulate the institutions and procedures for real estate appraisal. If it is necessary to determine the market value of the property when carrying out a joint ownership property separation, the appraisal should be carried out in accordance with the law and the results of the appraisal should be followed.