Extinction of the condominium

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To fully understand these legal aspects, it is essential to be able to establish this concept in an elementary and clear way, Un condominio se establece como un bien compartido por varias persons, propietarios o titulares.

Now, different properties and real estate are under this situation called condominium as a result of the multiple rights in their property, some of the most frequent reasons why these multiple rights exist in a certain property can be an inheritance between family members, commonly siblings, a marriage or a business shared between partners.

When sharing a property, agreements and negotiations are usually reached that can determine commonwealth or solidarity relationships between individuals, owners of this common good called condominium.

The end of a shared property is often called the completion of a condo., this entails the consummation of this, the dissolution of these assets with quite a few holders.

A clear example of this would be in a divorce case, the two become owners of the condominium during their marriage, but only one of them will keep the property after the divorce, giving the other an economic consideration, which is usually the price of the condominium. property.

As explained in more detail, extinction of the condominium is quite profitable and convenient for cases where there are undivided assets involved, as in the previous case, a sustenance bought within the marriage.

What are some common causes of condo extinction?

It should be known that co-ownership comes to an end when the common, to be discussed shortly, crumbles or fades.

If for some legitimate reason it continues to be external to a sale; or if the joint ownership falls on the domestic animals, they regain their freedom.

Co-ownership or condominium may be partially terminated when one individual obtains a property that belonged to more individuals; when all the headlines go by; or when it is lost by legal concession, sentence of sentence or embargo

Regular condo

If we talk inside a regular condo, each owner has the right and the opportunity to end this at any time they want, when requesting the procedure of the division of the common, this means the distribution of these goods.

In this procedure Assets that are indivisible, such as a house where each individual was the owner, will become their monetary match or a fair match., where the percentage that corresponds to each individual owner of the condominium, property or joint ownership can be divided fairly and absolutely honestly.

How does the termination of a condominium or co-ownership work?

To get started with this procedure, you must sign a contract so that the property you are talking about stop being a shared property and go only to one ownerThis contract will stipulate all the information on this asset that will go from being shared to having a single owner.

This contract must also include those who They are the original owners and which of them will give up their part for the economic retribution, At the same time as the agreed price, this contract must be brought before a notary or in the case of divorce and not inheritance, this contract can be signed within the regulatory pact by mutual agreement, which must be included in the divorce claim.

What is the division of the common?

This simply means yes. one of the parties did not agree to request the termination of the condominium then you can make the request for Division of the common, where can you order the dissolution of the condominium.

This division of the common may be requested as long as there are several holders of an indivisible asset, it may be awarded to any of its holders or commercialize and divide the profit,

In order to carry out all this procedure, you must first establish the Characteristics of the condominium, divisible or indivisible.

Divisible condo

If the condominium is divisible then this procedure will be simpler since by being able to divide it into equal parts, each one will be given what corresponds to their property.

Indivisible condominium

If he the condominium is indivisible Then two alternatives can be taken, as they have already been proposed, or the condominium will be sold distributing the monetary amount generated from it among all the owners, or the other alternative is that one of its owners becomes the sole owner, giving the the other owners the economic retribution of the value of their property.

If no agreement is reached between the co-owners, the court may hold an auction for this property which will be explained immediately.

All these procedures must be requested in a court, in the same way a lawyer will be needed to carry out the procedures and guide the procedure until its consummation.

What happens if an agreement is not reached between the co-owners?

As mentioned, the court must hold an auction of this condominium within the same court if the co-owners could not reach an agreement on the division of the common thing, and the money collected in said auction will be distributed personally among the owners.

Is it viable to market the condominium that I have?

The solution to this is yes, if they are not interested in your part of the property, or if they do not want to go through all these legal processes, there is the option of marketing your property to an interested person or company.

How to carry out the extinction of a condominium if there is a mortgage involved?

This case is very common, an example of this would be when within a marriage it is decided to buy a house through a mortgage loan and after a while, they want to apply. a divorce and terminate the condo.

In these cases, it may be determined that one of the owners acquires the property in its entirety, but no matter how much one agrees to confer ownership on the other, the debt will not be eliminated, upon signing a condo termination, ownership of the property will transfer but the mortgagor will remain, so that you can also cease to be a debtor when you transfer the property, it is necessary that the the bank authorizes another loan.

In this loan, the person who will give up his part of the property will not be deficient in the mortgage, only then can a new mortgage be signed in the name of the person who will keep the property and the debt in its entirety.

Extinction of the condominium when there is inheritance

It is very recurrent that several members of a family, mostly brothers share ownership of several houses, and since a home is an indivisible asset due to its own characteristics, where one part cannot be maintained with certain dwellings and the other part with the rest of dwellings, we proceed to the extinction of the condominium.

Liquidation of the community property regime and termination of the condominium owner

It is very important to know that The process of extinction of the condominium cannot be carried out if throughout the divorce procedure the liquidation of the community property regime is requested.Since in this application a count will be made of the assets acquired within the marriage and they will be distributed between the two individuals, the termination of the condominium may be carried out in its entirety in any other property separation procedure after the divorce.

What are the taxes to be made when requesting the extinction of a condominium?

As previously mentioned, perform the condominium extinction process It is much cheaper than taking over a property or transferring a condominium,

The only tax that must be met is the transfer tax and documented legal acts It is between 0.5% and 1% that varies within the different autonomous communities, on the other hand, when making a purchase sale the tax payable is between 6% and 10%,

When making the payment of this tax, attention must be paid that when extinguishing a condominium, if the value assigned to a part of the property is not its current real value, the tax on the income of natural persons must be complied with.

Apparently, carrying out this procedure is cheaper than buying and marketing, but since a public deed must be carried out and registered, the registration and notary expenses must be covered, the price of the formalization of this procedure may vary depending on the condominium valueYou must also hire a manager to serve you in this procedure, and that will be one more investment. Naturally, these payments will be made by the future sole owner of the property.