A contract of partition occurs when two or more co-owners divide property held in common so that each person is assigned a portion in full ownership. If the resulting portions differ in value, the party receiving the greater share may need to compensate the other.
All partitions of immovable property such as land, buildings, and airspace, must be formalised by virtue of a public deed. For instance, co-owners of a block of flats may divide the units so that each person is assigned a specific apartment.
Taxes and duties on partitions vary based on how the property was acquired, whether a party’s share increased in value through the partition, and whether any compensation was paid by the party gaining a larger share.
