Buying and selling homes with shared spaces, Attention!

In one of our last home inspections of a semi-detached house, one of our home checkers discovered an unexpected surprise: a shared basement garage with no clear rules that resulted from the segregation of an old property into two semi-detached houses. If, like these buyers, you are about to purchase a home and are faced with surprises like this one, read on and discover the secrets and essential tips for dealing with this type of situation properly.

What our home checker discovered when doing the physical inspection of the property that the buyers had entrusted him with is a situation in which a part of a property (in this case, the basement) is shared between two different properties. In legal terms and in the context of real estate, this is generally referred to as a "joint tenancy" or "proindiviso". That is, both owners have rights to that shared part of the property.

The "proindiviso" is when a property is owned by several people, and each of them has a percentage of ownership over the whole of it, not over a specific part of it. In the case we are describing, if both dwellings have access and rights to the basement, it means that both owners are co-owners of that space.

It is important to clarify that this type of situation can generate problems if not handled properly, especially with regard to the maintenance, use, access, expenses and possible reforms of the shared space. Therefore, it is essential that there are clear agreements between the parties or even a co-ownership regulation to avoid possible disputes in the future.

If there are no agreements or rules governing the use and maintenance of the shared space, it is possible that disputes or misunderstandings may arise in the future between the owners. It is essential that you consider the following points if you are thinking of acquiring one of the properties:

1. Definition of rights: It is vital to establish who is entitled to what in the shared space. For example, if there is a part of the basement that is for the exclusive use of one home and another part that is for the exclusive use of the other.
2. Maintenance and expenses: Determine how expenses related to maintenance, repairs and improvements to the shared space will be shared. Will they be divided equally? Will it depend on use?
3. Use of space: If one owner wants to make an alteration or change to the basement, will he or she need the permission of the other? To what extent can one owner make unilateral decisions about the shared space?
4. Access: Are there any restrictions or rules about when and how the basement can be accessed?
5. Dispute Resolution: In the event of disagreement between owners, it is helpful to have a mechanism for resolving disputes, either through mediation or some other agreed-upon way.
6. Sale of the property: If one of the owners decides to sell his or her share, how will this affect the shared space agreement? The new owner may not agree to the previous informal arrangements.
7. Formalizing the agreement: Once an agreement is reached on the use and maintenance of the shared space, it is highly advisable to formalize it in writing and, if possible, record it to ensure that both parties are legally protected.

With the growing demand in the real estate market, joint ownership situations are more common than one might think. In the quest to optimize space or divide large properties, these co-ownership agreements have become a solution for many. However, lack of clarity or lack of knowledge on how to handle these situations can lead to long-term complications.

Experience has taught us that unregulated or poorly defined situations are often a source of tension and conflict between owners. Imagine a situation where one of the owners decides to stop contributing financially to the maintenance of the basement (cleaning, repairs, automatic doors, lighting, etc.) and all these costs end up being assumed by the other party. Or worse, one of the owners decides to rent the space to a third party, generating inconveniences with the access and use of the space. These are just some of the many situations that could arise without a clear agreement.

For this reason, we always recommend that those who are considering buying a home with shared areas thoroughly investigate the legal situation and seek specialized advice. An attorney specializing in real estate law can help review or draft agreements that clarify all of these issues and avoid potential future conflicts.

Even if both parties have the best intentions and an excellent relationship at the beginning, it is essential not to leave any detail to chance and to have everything well defined. Home ownership is, in most cases, the largest investment a person will make in his or her life, and it is essential to protect it properly.

In summary, if you find yourself in a situation where you are considering a property with a proindiviso, do your homework. Do your research, ask questions, and make sure you are clear on everything. A little effort now can save you big headaches down the road. Good luck on your next real estate adventure!