Partition of Co-owned Property Lawsuit

Where real estate is inherited property, the co-heirs inherit the property in the form of co-ownership shares.

In this case, if no partition by agreement is reached among the heirs, the property remains in a state of co-ownership, and any of them may file a lawsuit claiming partition of co-owned property.

In particular, where the property is physically difficult to divide, as with real estate, the court determines whether partition in kind is possible and, if not, proceeds with liquidation by the method of partition of the proceeds following an auction.

Where, after jointly purchasing real estate for purposes such as investment, a dispute arises among the co-owners over differences of opinion or matters of disposal, a partition of co-owned property lawsuit may be necessary.

Conflicts over the distribution of profits, the timing of disposal, and the like readily arise among investors, and in many cases it is realistically difficult to continue joint holding.

The right to claim partition of co-owned property is a right recognized for every co-owner.

A co-owner may file the lawsuit independently without needing the consent of the other co-owners, and the claim for partition itself is valid even if the other co-owners object.

The right to claim partition of co-owned property is a right that may be exercised at any time, and under Article 268 of the Civil Act, even where there is an agreement to prohibit partition, it is valid so long as its term does not exceed 5 years.

However, where partition has been prohibited for a certain period by agreement or by statute, a lawsuit may not be filed during that period.

By agreement among the co-owners, partition may be prohibited for a maximum of 5 years, and once this period has elapsed, a lawsuit may be filed again.

In particular, for real estate or commercial premises intended for a joint business, such agreements are frequently used in practice.

Partition in kind is the method of actually dividing the co-owned property so that each co-owner holds sole ownership.

This is the principal method of partition of co-owned property and is given priority consideration where it is possible to divide the co-owned property without damaging it.

Partition by payment is the method whereby some co-owners receive the property in kind and the others are settled for their shares in money.

It is also commonly referred to as mixed partition and is a compromise solution for preserving a certain degree of value.

However, partition by payment is permitted only where partition in kind is possible but a settlement of shares is required, and if payment is delayed, it may lead to a new dispute.

Partition by auction is the method of compulsorily auctioning the co-owned property and distributing the proceeds of the sale among the co-owners according to their shares.

Where partition in kind is impossible or the value of the co-owned property would be significantly impaired, the court selects this method.

In order to file a lawsuit claiming partition of co-owned property, a complaint containing the following must be prepared.

For a lawsuit for partition of co-owned property concerning real estate, the court of the place where the real estate is located is the court of jurisdiction.

The court designates a date for pleading, hears the arguments of both sides, and examines the evidence.

At this stage, an appraisal procedure may be conducted as necessary to assess the value of the real estate.

The court renders judgment by various methods such as partition in kind, partition by payment, and partition by auction.

Once the judgment becomes final, the co-owners acquire sole ownership and the like in the partitioned portion.

In this case, the partitioned ownership must be registered through the registration procedure.

Registration of ownership transfer by partition of co-owned property is, in principle, a joint application.

In other words, both parties to the transfer must jointly apply for registration (Article 23(1) of the 「Registration of Real Estate Act」).

However, where the judgment in the partition of co-owned property lawsuit has become final or a judicial conciliation has been established, the co-owner concerned may apply for the registration of ownership transfer independently by attaching the final and conclusive written judgment or the conciliation protocol.

In order to apply for registration of ownership transfer, the following attached documents must all be furnished together with the application.

Registration of ownership transfer by partition of co-owned property may be applied for via the internet or by visiting in person.

An electronic application may be made by the party directly, or by an attorney, a judicial scrivener, or the like on the party's behalf.

Our law firm has on staff a substantial number of certified real estate specialist attorneys registered with the Korean Bar Association, as well as experienced attorneys with an average of more than 10 years of practice.

We are able to provide substantive legal support spanning the entire process, from determining the merits of a claim for partition of co-owned property and designing the method of partition to filing the lawsuit and executing the judgment where partition negotiations fail.

If it is difficult to handle all of the procedures on your own, we recommend proceeding more accurately and promptly with the assistance of a real estate attorney.