Liquidation of a partnership in real estate is a right given to anyone who shares in a real estate"N. It happens in the best families and sometimes the right way to unfreeze the property.
The value of real estate assets tends to be high and therefore, many times, ownership of them belongs to more than one person. Partners in real estate can be spouses who own an apartment together, family members who inherited real property"In common, a group of people who bought together a large plot of land, etc. Before carrying out the liquidation of a partnership, it is recommended to consult with a lawyer knowledgeable in the field.
Real estate sharing agreements are signed between the partners, within which the division of the property is regulated, whether it is an apartment, a residential building, an area of land, what is its use, how it is managed, and more. The agreement is given to the editor through a lawyer dealing in the field of real estate.
In addition, the agreement stipulates the right of each of the partners to withdraw from the partnership, at any time they see fit and to sell their share to any of the other partners, to all of them, or to a third party.
Dissolution of land sharing as a lever for development
Dissolving a partnership in real estate is an effective legal solution, in cases where differences of opinion between partners in the real estate property result in freezing the use of the property and harming the ability to develop it and generate profits.
The State of Israel considers liquidation procedures for land sharing, a lever for real estate development throughout the country, and therefore a liquidation claim is a short and simple procedure, compared to other legal procedures.
According to the Land Law, 1969-1969, all owners of the land are entitled to claim dissolution of sharing in the land, provided that their rights are registered in the Land Registry Office or the Israel Land Authority, in a unilateral decision and regardless of the size of their share in the shared property.
If the partners arranged from the beginning a mechanism for a possible dissolution of the partnership, the dissolution will be done as stipulated. At the same time, it is possible to prohibit in advance in the agreement the dissolution of the partnership, but only up to a period of three years.
Dissolution of a partnership in an agricultural farm
The dissolution of a joint farm located in the settlements is a special issue and different from the dissolution of a joint stock in normal land. When requesting to liquidate a share in real estate that is an agricultural farm, special provisions and laws apply that limit the possibility of liquidation. For example, when heirs of a farm seek to break up the sharing in the property they inherited, they must act in accordance with section 114 of the Inheritance Law, which states that the farm will be handed over to one heir who will compensate the other heirs. In view of the complexity of the issue of dissolution of land sharing in Moshav it is recommended to consult with Moshavim lawyer Familiar with Israel Land Authority decisions, the Land Law and the Law of Inheritance.
As for the amount of compensation that the heir must pay to the other heirs, the court will decide according to the circumstances.
In which courts do they discuss the dissolution of sharing in real estate?
When a claim for liquidation of sharing in real estate deals with the property registered in the tabu, it will be submitted to the Magistrate’s Court in the authority where the property is located, and will be administered according to the provisions of the Real Estate Law.
When the property is not registered in the tabu, but in the Israel Land Authority or in a mortgage company, the case will be heard in a peace or district court, according to the value of the property. Such a case will be managed according to the provisions of the movable property law.
When the partners in the land are family members, the dissolution claim will be heard in a family court, regardless of the value of the land, it is recommended to get preliminary advice from lawyers, before filing a claim.
Ways of dividing real estate
The most simple and preferred way to break up sharing in real estate is division "in the eye", that is, physical division of the property, which is possible mainly when it comes to undeveloped land. Another option for physical division of the property exists when the partnership is on an apartment building, which can be divided between the partners. For a complete comparison between the parts of the partners in such cases, the court can determine "balance payments".
If it is not possible to physically divide the land, or if such a division would cause damage to one of the partners, the property can be sold to a third party and the profit divided.
Dissolution of property sharing between spouses
Dissolution of sharing in real estate also occurs on the background of a divorce, in which the couple owns a shared apartment. As part of the liquidation procedure, one of them can sell his share to the other, or both can sell the apartment to a third party and share the profit.
When there is no agreement between the spouses regarding the division of the property, an administrator will be appointed for the liquidation procedure, but the court may delay the liquidation of the shared apartment, until an alternative residential solution is found for the parties and their children. When the real estate is an agricultural farm in the moshav, the way to dissolve the partnership is by pricing between the spouses or alternatively by selling it to third party.
Objection to dissolution of partnership
A lawsuit to dissolve a partnership in real estate, may also be made in bad faith, then the other partners can object and provide evidence, for the misuse of the right to dissolve.
The partners can claim that the partner requesting the liquidation is driven by profit motives in an unfair way, at their expense. In such a case, the court may refuse the request to dissolve the partnership and rule in favor of maintaining the joint ownership of the property.
* The above should not be a substitute for legal advice.