Article 25 of the Law on Real Rights of FBiH stipulates that co-ownership exists when two or more persons have ownership rights over the same asset, each in proportion to his/her share of the whole (the ideal part). The co-owner is the owner of that ideal part of the asset that corresponds to his co-ownership share, so in relation to that part he has all the powers that belong to the owner, provided that, given the nature of the ideal part, he can exercise them.
Article 37 of the Law on Real Rights of FBiH stipulates that the co-owner has the right to demand complete or partial dissolution of co-ownership, if possible and permissible, and this right is not subject to statute of limitation. A legal transaction in which a co-owner permanently, in advance, waives the right to terminate co-ownership is null and void. Co-owners may unanimously decide not to request the dissolution of co-ownership within a certain period of time, which may not be longer than 3 (three) years. Co-owners mutually agree the method of division within the limits of what is possible and permissible (voluntary dissolution).
Article 38 of the Law on Real Rights of FBiH stipulates that judicial dissolution exists in the event the co-owners cannot agree on the manner of dissolution of co-ownership, the court will then decide in extrajudicial proceedings at the request of any co-owner (judicial dissolution). If the division of the asset is impossible or is possible only with a significant reduction of its value, the court will decide to divide it by selling it in a public auction or in another appropriate way and dividing the proceeds of the sale in proportion to the co-ownership share (civil division). If such division by sale of the asset fails, the court may award the asset to one or more co-owners, taking into account the size of their respective co-ownership share, their needs and other circumstances, with mandatory compensation of market value to other co-owners in proportion to their respective shares. Other co-owners warrant the co-owner awarded the whole or part of the asset by such dissolution the legal and physical defects of the asset up to the value of their co-ownership shares according to the rules of the obligations law.
In cases in which this office represented the petitioner in court proceedings for the division of co-owned immovable property, the Municipal Court in Visoko, in case number 41 0 V 085547 20 V of 29 November 2021, ordered the physical division of immovable property in the manner requested in the petitioner’s motion to the court. On 25 April 2022, the Cantonal Court in Zenica upheld the Decision of the first instance court in case number 41 0 V 085547 20 Gž, thus fully protecting the rights and interests of the petitioner.
If you need counsel on the topic of dissolution of co-ownership – division of immovable property as an owner, co-owner, company, company member, director or founder, or if you need a real law attorney in Sarajevo for your company or for your business idea, then you are at the right place with us and you can contact our corporate lawyers directly by phone (+387 62 342 463), WhatsApp, Viber or email (rasid@haracic.ba).
