I own a property together with other people. Are there legal mechanisms to leave this situation?

"Contencioso em Foco" is a segment by Caiado Guerreiro, led by partner Sandra Ferreira Dias, co-coordinator of the Litigation and Arbitration team, and lawyer Inês Camilo de Azevedo, which aims to clarify and explore relevant questions and legal issues within this field. This week's topic is: “I own a property together with other people. Are there legal mechanisms to leave this situation?” — a legal reflection on the rights of co-owners and the legal instruments available to those wishing to exit an unwanted co-ownership arrangement.
Articles 24/07/2025

Action for the Division of Common Property: Exiting an Unwanted Co-Ownership

It is not uncommon for clients to find themselves trapped in situations of co-ownership of real estate, often unaware that effective legal solutions are available to help them exit such arrangements.

Co-ownership arises when two or more individuals hold ownership rights over the same property. In other words, each co-owner holds an undivided share of the property, but none has exclusive ownership of any specific part of it.

Such situations are particularly common in cases such as:

  • Inheritance, where a property is transferred to multiple heirs;

  • Joint purchase of property by family members, friends, or business partners;

  • Divorce, when former spouses remain co-owners of the same property.

Although, in theory, co-ownership can function harmoniously, experience shows that, in most cases, disagreements, conflicts of interest, and management deadlocks tend to arise.

In practice, the indivisibility of a property gives rise to a number of legal and logistical challenges, particularly in matters such as leasing, selling, or maintaining the property. These issues often lead to stress, financial burdens, and, most significantly, a serious limitation on the exercise of property rights.

However, the Portuguese Civil Code is unequivocal: no co-owner is obliged to remain in a state of indivision. This principle serves a fundamental purpose — to ensure that any co-owner may, at any time, request the division of the common property, thereby terminating the co-ownership arrangement.

There are, therefore, legal mechanisms available to resolve such situations, always with the goal of enabling each owner to fully exercise their property rights.

It is always advisable to first attempt to reach an agreement with the other co-owners. If communication exists between the parties, this is typically the quickest and most cost-effective solution.

When an agreement proves impossible — due to disagreement, lack of communication, or bad faith on the part of one of the co-owners — the matter must be brought before the courts.

The so-called action for the division of common property allows any of the co-owners to initiate judicial proceedings to terminate the co-ownership.

In such proceedings, the court confirms the existence of the co-ownership, determines the appropriate method of division (either physical division or sale and distribution of proceeds), and ensures the legality of the process while safeguarding the rights of all parties involved.

If the property can be physically divided (e.g., a building with separate floors), the court may order a material division. If division is not feasible, a judicial sale of the property is ordered, and the proceeds are distributed among the co-owners according to their respective shares.

One of the most common mistakes is delaying the resolution of the issue. Many owners remain tied to unused properties that generate costs and deteriorate over time, hoping that circumstances will eventually improve.

However, the longer the delay, the more difficult and emotionally burdensome the resolution becomes — and the lower the potential sale value of the property.

Acting promptly, with the support of a specialized legal team, may be the key to regaining control over your assets.


The content of this information does not constitute any specific legal advice; the latter can only be given when faced with a specific case. Please contact us for any further clarification or information deemed necessary in what concerns the application of the law.

Authors

Practice Areas

  • Arbitration
  • Litigation
  • Real Estate Law

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