Joint ownership of property is common in case of joint inheritance and can be a source of numerous problems for the co-divisors.
As the Monegasque Civil Code doesn’t provide any clear solutions and the conflictual situations need to be resolved, the Principality's judges have drawn heavily on French law to define the legal regime for undivided property.
Joint owners should bear in mind that certain acts (such as the sale of joint property) require the unanimous consent of all the co-dividers, while other acts (such as the maintenance works required to preserve the property) may be carried out at the initiative of just one of them, the aim being to enable a long-term and smooth management of the joint property.
Naturally, all acts of management must be drafted with special care, to avoid any subsequent grievance, as an undivided co-ownership, which has no legal personality, cannot, as such, take legal action or enter into contracts (e.g. leases) relating to undivided property.
If the parties cannot reach any consensus and the situation becomes inextricable, the co-divisor may, as a last resort, bring about a partition, because, as the saying goes, no one can be forced to remain in joint ownership.
Following the example of French law, judicial partition requires a prior attempt at amicable partition, the aim always being to reach an agreement between the joint owners outside the courtroom. As a last resort, however, the Monegasque court may order a judicial auction of the undivided property.
