Selling an apartment with two owners
Not always real estate belongs to only one person. Two or more owners can own an apartment at the same time. For some transactions with real estate in shared ownership, the consent of a co-owner will be required. This applies to the sale of housing.
We tell you whether it is possible to sell an object if there are two owners and what to do if the other owner is against the sale. We also consider how a sale and purchase transaction takes place in such a situation and how tax is paid.
Is it possible to sell an apartment with two owners
Each co-owner has the right to dispose of only their part of the property. If the share in the apartment is not determined, i.e. two people own real estate on the rights of joint ownership (privatized property, property of spouses acquired in marriage), then their part of the real estate must be allocated. To do this, it is necessary to conclude an agreement, certifying it with a notary, or apply to the court. After that, you can fully dispose of your part of the apartment.
If you plan to sell your part of the apartment, you can do so, but the other co-owner will have the pre-emptive right to buy it. Before the sale, it is necessary to offer such a buyout to the other owner in writing. If the co-owner of the apartment does not accept the offer within 30 days, then you can sell your part of the property to anyone.
But it is important to realize that it is quite difficult to sell a part of the apartment, as few people agree to buy not the whole object, especially if it is an apartment and not a house.
It is easiest when the situation is resolved in a peaceful way, that is, two owners agree with each other and one of them sells his part to the other. After that, one full owner can sell the whole apartment at once. This also has a positive effect on the value of the property. Selling the property piecemeal is less profitable for sellers than the whole object.
What to do if one of the owners does not want to sell the apartment
There are times when it is not possible to solve everything peacefully: one wants to sell his part, and the other does not want to. In this case, one of the owners can sell the personal share independently without the consent of the other owner. But it is important to follow the entire procedure.
As mentioned above, you must immediately offer the other owner in writing to buy a part of the apartment, specifying the price and terms. If within 30 days, this owner refuses to buy this share or does not declare his intentions, then it can be legally put up for sale and sold to third parties.
It is important to carry out the procedure of notifying the other owner correctly. If it is violated or if this step is not followed, the second owner may sue for the transfer of the buyer's rights and obligations to him. A limitation period of 12 months applies to such claims.
If it is a question of selling the entire apartment, which is in shared ownership, it can be sold in its entirety only with the participation of all co-owners. If one of the owners is against it, it will not be possible to sell the entire apartment. But there is a nuance - when the share of one of the owners is very small, the issue can be resolved in court with the help of an experienced lawyer.
How a sale and purchase transaction takes place
It is possible to sell an apartment with two owners only with their consent. Each owner must be in favor of selling the property and provide the notary with a written consent to the transaction. Lack of written consent may be a reason for court proceedings to recognize the sale and purchase agreement as invalid. The refusal of the other owner from the priority purchase of another share when selling a part of the property must also be notarized.
What documents will be needed to conclude a sale and purchase transaction of an apartment that has two owners:
proof of ownership;
technical passport for the living space;
real estate valuation document;
extract from the State Register;
documents on marital status (marriage certificate, divorce certificate);
passport and identification code for each owner;
birth certificate and permission from the guardianship and custody authorities (in case the real estate share belongs to a minor).
If the apartment is sold in its entirety and it has two owners, they must be personally present at the conclusion of the sale and purchase agreement at the notary. If one of the owners cannot be at the transaction, he provides a notarized power of attorney.
How to pay tax on the sale of an apartment
According to the Tax Code of Ukraine (paragraph 172.1), income from the sale of real estate is not taxable under certain conditions:
if it is the first sale of an apartment for the reporting tax year (from January 1 to December 31);
if the object has been in the taxpayer's ownership for at least 3 years (does not apply to inherited property).
If any of the above points does not correspond to the seller's real situation, the income from the sale of the apartment is taxed at the rate of 5%. It is also additionally necessary to pay a 1.5% military levy on the value of the object specified in the sale and purchase agreement, but not less than the appraised value of the real estate.
If a part of the property is sold, the seller of this share pays the sales tax. If the entire apartment is sold, the tax is paid by two sellers from the amount received from the buyer.
In the event that a third or subsequent sale of an apartment is formalized during the reporting year, the seller must pay 18% personal income tax and 1.5% of the military levy.
If it is difficult to understand the legal nuances of the sale of real estate, which has two owners, but in the plans to sell the object, it is best to turn to professionals. The real estate agency "Mayak" employs realtors, lawyers and a notary who know all the peculiarities of such transactions. To sell your part of the property or the whole apartment with the consent of all owners with the real estate agency "Mayak" will be simple and absolutely legal.
