Article 1407 of the Portuguese Civil Code specifically regulates the Administration of Common Property (Co-ownership). This article establishes that, in the absence of a convention (agreement) between co-owners, the administration of common property must be decided by majority vote, with this majority calculated based on the value of each co-owner’s shares. This rule is supplementary, applying only when co-owners have not established their own regime.
Application to Co-ownership
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Administration by Majority:
In co-ownership, the administration of common property can be decided by majority vote of the co-owners. This majority is calculated based on the value of the shares that each co-owner holds in the common property.
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Convention to the Contrary:
Co-owners can establish a different agreement for the administration of common property. If there is a convention that determines another method of administration, that convention prevails over the majority rule.
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Administration Decisions:
Decisions that can be made by majority include those relating to the conservation, enjoyment, and improvement of common property, provided they do not alter the substance or purpose of the same. This rule follows, by reference to Article 1407, the principle established in Article 985, no. 2, of the same code.
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Conflict Resolution:
If there is no agreement between co-owners and administration by majority is not possible, any co-owner can resort to the court to resolve the impasse.
Article 1407 is fundamental to ensure that the administration of co-owned property can be done effectively and fairly, preventing the lack of consensus between co-owners from impeding the proper management of common property.