Houses with multiple heirs: solutions to avoid infinite co-ownership

When a house is bequeathed to multiple people, a situation of co-ownership often arises, which, if not managed properly, can turn into a problem that can last for years. So-called "joint ownership" can become a source of conflict, block the sale of the property, and impede the peaceful management of the family estate. For this reason, it is important to understand the tools our law provides to avoid infinite joint ownership and find practical and rapid solutions.

• Joint ownership: how it works
• The risks of prolonged co-ownership
• What is pre-emption between co-heirs?
• When pre-emption applies and when not
• How to exercise pre-emption
• What happens if the right of pre-emption is violated?
• Consensual division: the simplest way
• Sale and distribution of proceeds
• Judicial division: the last resort
• Plan to avoid conflicts

Joint ownership: how it works

Upon the owner's death, all assets included in the inheritance automatically pass into co-ownership among the heirs. This means that each co-heir is entitled to an imaginary share of the house, not a physical portion. For example, if a house is left equally to three children, each will have a third of the property, but no one will be able to freely dispose of a piece of the property without the consent of the others.

Until the joint ownership is dissolved, important decisions, such as selling, renting, or renovating the house, must be made with the consent of the majority of the co-heirs (or, in some cases, all).

The risks of prolonged co-ownership

Maintaining joint ownership for too long can create tension and block the management of the property. Some heirs may want to sell, others may not; some may not contribute to the condominium fees or maintenance, placing the burden on others. Furthermore, the presence of multiple co-owners can discourage potential buyers and reduce the market value of the home.

For these reasons, it is advisable to reach an agreement within a reasonable timeframe and dissolve the joint ownership.

What is pre-emption between co-heirs?

The right of pre-emption between co-heirs is governed by Article 732 of the Civil Code. The law establishes that if a co-heir intends to sell their share of an inherited property to a person outside the joint ownership, the other co-heirs have the right to be preferred in the purchase.

In practice, before selling to a third party, the selling co-heir must offer their share to the other co-heirs under the same conditions as those provided for an external purchaser. The rationale behind the law is clear: to prevent outsiders from entering the joint ownership and to preserve the balance between the co-heirs.

When pre-emption applies and when not

Pre-emption applies only under certain conditions. First of all, there must be an existing joint ownership of the property, i.e., in the absence of a formal division of the property. Furthermore, the sale must involve a share and not the entire property, and the purchaser must be a person outside the circle of heirs.

Conversely, pre-emption does not apply if the share is transferred to another co-heir, because in this case the composition of the joint property remains unchanged. It also does not apply after the division of the inheritance, when each individual becomes the exclusive owner of their portion or the assigned property.

It is important to emphasize that pre-emption concerns sales and not other transactions, such as donations, although in the case of simulated donations, the issue may become more complex and lead to litigation.

How to exercise pre-emption

A co-heir intending to sell must notify the other co-heirs of their intention, specifying the asking price and all the terms of the sale. This notification must be made in a manner that ensures proof of notification, generally by registered mail with return receipt or by notified deed.

From the moment of notification, the other co-heirs have sixty days to decide whether or not to exercise their right of pre-emption. Acceptance must be clear and compliant with the proposed conditions, without unilateral modifications.

If multiple co-heirs express a desire to purchase, the share offered for sale is divided among them in proportion to their respective inheritance shares, unless otherwise agreed.

What happens if the right of pre-emption is violated?

Violation of the right of pre-emption does not automatically void the sales contract, but it exposes the transaction to a very significant consequence: the right of redemption. If a co-heir sells his or her share to a third party without properly informing the others, they may redeem the sold share within one year of the registration of the deed of sale.

With the redemption, the co-heir succeeds the purchaser under the same conditions agreed in the original contract, refunding the price paid. The third-party purchaser, therefore, loses the purchased share, with obvious financial and legal repercussions.

Consensual division: the simplest way

The quickest solution is consensual division. The heirs agree on the division of the property (if there are multiple assets) or on who will keep it in full, compensating the others with the payment of their respective shares.

If the home is not easily divisible, as is the case in most cases, one of the heirs can purchase the shares of the others, becoming the sole owner. The agreement is formalized with a notarial deed, which guarantees legal certainty and allows the new land registry status to be recorded.

Sale and distribution of proceeds

When none of the heirs wants or is able to keep the house, the most viable solution is to sell the property and divide the proceeds according to the inheritance shares. Even in this case, a consensual agreement is preferable to avoid having to resort to a judge. A joint sale allows you to obtain a better price and quickly close the joint ownership.

Judicial division: the last resort

If an agreement cannot be reached, each co-heir can ask the court for a judicial division. The judge can order the property to be sold at auction and distribute the proceeds among the heirs. This route, however, is longer, more expensive, and often penalizing, because judicial auctions yield lower values than a market sale.

Plan to avoid conflicts

To prevent your heirs from finding themselves in deadlock, you can plan your estate in advance. Through a well-drafted will or other legal instruments, you can decide who will receive a specific asset, reducing the risk of disputes between family members. You can rely on professionals like those at Agenzia delle Successioni to avoid making mistakes.