Several heirs, one property
As soon as two or more people inherit a property, it falls into joint ownership: each holds a share of the whole, nobody owns a particular room. It is the most frequent source of deadlock in Luxembourg estates.
The ground rules
- Nobody is trapped
- No one can be forced to remain in joint ownership. Any co-owner can request division at any time, through the courts if necessary.
- Selling requires unanimity
- Selling a jointly owned property requires everyone's agreement. A single reluctant heir is enough to block a signature.
- Costs are shared
- Property tax, insurance, maintenance, service charges: each contributes according to their share, whether the property is occupied or empty.
- Occupation is compensated
- An heir who lives alone in the jointly owned property may owe the others an occupancy indemnity. This point creates a great deal of tension; settle it explicitly from the start.
- Income belongs to all
- If the property is let, the rent is shared between co-owners after deduction of costs.
The four ways out
Sale to a third party
The cleanest solution: the property is sold and the price divided by share. It requires a value everyone accepts, which is where an independent valuation earns its place.
Buying out the shares
One heir buys the others' shares and becomes sole owner. This needs a reference value, bank financing and a notarial deed. Common where one child wants to keep the family home.
Organised continuation
The heirs stay in joint ownership but sign an agreement: who pays what, who occupies, who manages, and for how long. Useful when selling would be premature, for instance where a usufruct exists.
Court-ordered auction
Where deadlock persists, the court can order a sale by auction. A last resort: slow, expensive, and the price obtained is usually below that of a private sale.
When a usufruct is involved
If the surviving spouse opted for usufruct, they keep the use of the property and its income, while the children hold the bare ownership. Selling then requires the agreement of both the usufructuary and the bare owners. Three routes exist: sell together and split the price according to the respective value of the usufruct and the bare ownership, buy out the usufruct, or wait.
Our role in joint ownership
- A written valuation, given to all the heirs at the same time: nobody can suspect anyone else of arranging a convenient figure.
- A clear calculation of what each person would receive by share, before and after costs.
- A neutral point of contact when the family conversation is tense, including with heirs living abroad.
- Coordination with the notary so that the sale agreement reflects exactly what was agreed.