🏠 VeriKnows by VeriCasa

In co-owned property, do co-owners have a right of preference?

Apr 01, 20262 min read

Yes, in Portugal, in the case of sale of a co-owned property, co-owners have a right of preference. This right is enshrined in article 1409 of the Civil Code and applies when one of the co-owners decides to sell their share to a third party who is not part of the co-ownership.

Right of Preference of Co-owners

  1. Definition:

    The right of preference is a legal mechanism that allows co-owners to acquire the share being sold, on equal terms with the external buyer. This right aims to prevent the entry of third parties into the co-ownership, promoting the reduction of the number of co-owners and facilitating the management and use of the common property.

  2. Procedure:

    • The co-owner who intends to sell their share must notify the other co-owners about the intention to sell, providing details about the price and conditions of the transaction.

    • Co-owners interested in exercising the right of preference must express this intention within the legal deadline stipulated, generally eight days after notification.

    • If there is more than one interested party in acquiring the share, the share is awarded to all interested parties in proportion to their shares in the co-ownership.

  3. Exercise of the Right:

    • If one or more co-owners decide to exercise the right of preference, they can acquire the share under the same conditions offered to the third party.

    • If no co-owner exercises the right of preference, the seller can proceed with the sale to the third party.

  4. Exclusions:

    The right of preference does not apply if the sale is made to another co-owner. In this case, the other co-owners do not have preference, as the sale does not introduce a new third party into the co-ownership.

Importance of the Right of Preference:

This right is important to maintain the cohesion and effective management of common property, preventing the fragmentation of property and potential conflicts between co-owners and third parties. It is essential that co-owners are aware of their rights and obligations so they can make informed decisions in case of sale of shares in the co-ownership.