In Colombian legislation, there are two figures that, although related, fulfill different functions in the management, disposition, and registration of properties: material division and property segregation. Although they are often used as synonyms, in reality they correspond to different instruments, each with its own specific legal purposes and effects.
Both procedures involve the separation of areas within a property; however, understanding their differences is essential, since the improper use of these concepts can generate errors in notarial, registry, or cadastral procedures.
Below, we explain what material division is, what property segregation is, and in which situations each one applies.
What is material division?
According to Concept 2252 of May 30, 2018, of the Superintendence of Notaries and Registry, material division is an act of disposition by means of which the owner or owners of the right of ownership divide a property into two or more units, so that each unit acquires its own registry identity, that is, that each one has its own real estate registration folio.
Material division applies, for example, when the co-owners of a piece of land, whether rural or urban, decide to physically divide the land without the need to modify its destination or use. In this process, the entire area of the original property is exhausted, the largest real estate registration folio must be closed, and new real estate registration folios are opened for each of the resulting properties, as indicated in article 50 of Law 1579 of 2012.
This act must be formalized by means of a public deed of material division, after the issuance of a subdivision license, which must be registered in the Office of the Registry of Public Instruments (ORIP), and subsequent cadastral update. According to the paragraph of article 2.2.6.1.1.6 of Decree 1077 of 2015, a subdivision license is not required when the material division is ordered by a final court judgment or when it is necessary to subdivide land due to the execution of works of public utility.
What is property segregation?
According to Ruling 00323 of 2016 of the Council of State, property segregation is also an act of disposition, by means of which the owner of the right of ownership determines a specific portion of his property, which is segregated or separated from a larger property. As a result, the segregated portion obtains its own registry identity through the opening of a new real estate registration folio.
Unlike material division, in property segregation, the total area of the initial property is not exhausted, but the existence of a "remaining part" is declared, that is, the larger property remains, with a reduced area, under the same real estate registration folio, according to the content of articles 16 and 51 of Law 1579 of 2012 and article 17 of Joint Resolution 1101 of 2020 of the Superintendency of Notary and Registry and the Agustín Codazzi Geographic Institute (IGAC).
Property segregation usually applies, for example, in partial sales of rural or urban properties, donations of portions of land, or when you want to constitute a right over a specific part of the property, keeping the rest of the property under the original ownership.
As well as material division, property segregation must be formalized through a public deed, following the issuance of a subdivision license, and registered with the Public Instruments Registry Office (ORIP). The corresponding cadastral process must be carried out to update the property data with the resulting property registration folio.
In resume, property segregation and material division are fundamental legal tools for the management and disposition of real estate in Colombia. However, each responds to different situations and generates different legal effects. While property segregation implies segregating a specific part, maintaining a remnant area in the largest folio, material division entails a total partition of the property, exhausting the original area, closing the larger folio, and creating new independent folios.
Understanding these differences allows you to make informed decisions, avoid errors in notarial, registry, or cadastral procedures, and ensure that real estate transactions are carried out legally, safely, and in compliance with current regulations.
If you would like more information or require advice on this matter, please do not hesitate to contact us.
