Property held in co-ownership by more than one person has some points to watch when selling that don't apply to sole-name property. Here we set out whether full consent is required, and the option of selling only your own share.
- Selling the entire co-owned property requires the consent of every co-owner.
- You can sell your own share alone, without the other co-owners' consent.
- Selling only a share tends to attract fewer buyers and a lower price.
- A common approach is for one co-owner to act as representative, holding powers of attorney from the others.
- If co-owners disagree, it's important to open a discussion early.
What co-ownership (kyōyū meigi) means
When a single property is owned by more than one person, it's called co-ownership (kyōyū meigi). This arises, for example, when a married couple or a parent and child pool funds to buy a property together, or when multiple heirs inherit the same property. Each co-owner's share of ownership is called their "portion" (mochibun). The size of each portion is registered based on how much each person contributed to the purchase or their share of the inheritance, and you can check it on the certificate of registered matters.
Selling the whole property requires everyone's consent
Under the Civil Code, selling (disposing of) the entire co-owned property requires the consent of every co-owner. If even one co-owner objects, the property as a whole cannot be put up for sale. The more co-owners there are, the longer it can take to bring everyone's wishes into line. Note that under the Civil Code, management acts on shared property — such as renting it out — can be decided by a majority of the portions, but a disposal act like a sale is different in that it requires unanimous consent.
Selling only your own share
You can sell just your own portion on your own, without needing the other co-owners' consent. However, buying only a portion doesn't give the buyer free use of the whole property, so such shares tend to attract fewer buyers and sell for less than market price. Selling a portion is one option worth considering when co-owners can't reach agreement. Because bringing in a third party outside the co-ownership tends to make the relationship with the remaining co-owners more complicated, sales of portions are sometimes structured so that the other co-owners buy it themselves.
The practical approach: naming a representative
In practice, it's common for one co-owner to act as representative, obtain powers of attorney from the other co-owners, and handle communications with the agent and the contract procedures on everyone's behalf. The sale proceeds are then generally distributed according to each co-owner's portion. Deciding on a representative and dividing up roles among the co-owners before starting the process helps things go smoothly. Spelling out in the power of attorney how much authority over sale terms and price the representative is given also helps prevent later disputes.
When co-owners disagree
If one of the co-owners objects to selling, or opinions differ on price or timing, it's important to open a discussion early. If talks don't reach agreement, there is a legal procedure called a claim for partition of co-owned property (kyōyūbutsu bunkatsu seikyū), but it takes time and money, so aiming for agreement among family members or co-owners first is the realistic approach. It's reassuring to keep a simple record of what was discussed — a short agreement or an email — to prevent later disagreements about what was actually decided.
When co-ownership arises from inheritance
Where co-ownership arose from inheritance, it assumes that the inheritance registration has already been completed. We cover the process and taxes involved in selling an inherited family home in Selling an Inherited Family Home: The Process and Tax Basics, so please take a look there as well.
Frequently asked questions
Can one co-owner decide to sell on their own?
Selling the entire property requires the consent of every co-owner. You can sell just your own share on your own, but be aware that the price tends to be lower.
What if one co-owner objects to selling?
The realistic first step is to aim for agreement through discussion. If that doesn't work, legal procedures such as a claim for partition of co-owned property are available, but they take time and money.
How is the sale proceeds divided?
It's common to divide it in proportion to each co-owner's share (portion). Confirming the division method among co-owners in advance helps prevent disputes.
Summary
Selling the whole of a co-owned property requires the consent of every co-owner, and while selling only a share is an option, it tends to be less favorable on price. If the co-ownership arose from inheritance, it's worth sorting things out early alongside the state of your inheritance registration.