A joint ownership It is a legal concept relating to the right of ownership of an asset or right; in other words, it means that the asset or right is jointly owned by several people, without being physically divided and without each co-owner having a specific physical share. It is also known as joint ownership, co-ownership or community of property.
Companies that purchase these undivided shares These are companies that specialise in acquiring the undivided share held by an individual, This frees the individual owner from co-ownership and, in turn, from the administrative burdens or disputes that this situation entails.
The an increase in conflicts in recent years Due to inheritances, separations or joint investments, these transactions have become increasingly common in Spain, which is why the The market for buying undivided shares has grown particularly over the last 10 years.
Companies of this kind have a standard processThis is generally carried out by everyone and consists of the following stages:
- Contact the company. The owner contacts the company, which then provides an indicative estimate of the market value of the property in question and the percentage of the sale price.
- Offer to purchase. The company makes an offer to the individual.
- Legal management. If the proposal is accepted, it is reviewed from a legal perspective and the transaction is signed before a notary.
- Further processing. Once the financial transaction with the customer has been completed, it is the purchasing company that decides how to manage that joint ownership.
How much do companies that buy undivided shares pay?
The price The amount payable for the undivided share of the property is usually considerably lower than the actual proportional value which would be the value of the property if it were free of any encumbrances or disputes.
Consequently, it depends very much on various factors, which are:
- Location of the property.
- Percentage of the joint ownership.
- Number of co-owners.
- Square metres.
- Physical condition of the property.
- Layout of the space.
- Additional benefits.
- Related expenses.
- Land registry charges.
- Level of conflict.
The usual range The range within which these data fluctuate is between 20% and 40%. In some cases, it can reach as high as 50% if conditions are ideal.
Top companies that buy undivided shares
There are three main types companies that purchase undivided shares, namely:
- Companies investing in the property sector: These are companies whose aim is to acquire these parts of the properties in order to subsequently sell them, either in their entirety or in part, and make a greater profit.
- Specialist law firms: In some cases, as well as offering legal advice to clients, they make purchases on their behalf or act as intermediaries in order to facilitate the process.
- Private investors and private equity funds: These are individuals or private investment funds that operate through intermediaries. They do not advertise and do not have a website through which they can be found. They focus on more high-risk transactions and seek medium- and long-term returns.
Reviews of companies that buy undivided shares
Opinions on this type of company vary widely due to their specific characteristics.
There are different views positive This is because their approach is based on speed and conflict resolution. Many firms resolve issues within 24–48 hours, which in turn provides clients with immediate access to funds. Furthermore, specialist firms streamline the paperwork, relieving clients of the need to negotiate and deal with more complex procedures.
There are also opinions negative regarding these companies that focus on offers which are well below market value. Furthermore, the pressure on customers to complete a purchase immediately is a negative factor, as it leads to mistrust.
Is it worth buying a share in a property held in joint ownership?
Having considered all this information, the question arises as to whether or not it is worth buying a share in a property, and the answer depends on each client’s individual circumstances.
Among the benefits We would like to highlight:
- Avoid potential conflicts in a shared property.
- It provides immediate access to liquidity.
- The transactions are legally secure.
- Most of the administrative procedures are the responsibility of the purchasing companies.
However, there are also a number of disadvantages, which are:
- A price well below the actual market value.
- Pressure to speed up the process, which may lead to unethical practices on the part of the acquiring companies.
- A lack of transparency in some cases when people are in need.
Conclusion
In short, companies that purchase undivided shares are a a quick and practical solution to sell part of a property in difficult circumstances, but which entail a number of risks to consider before making a decision. It is essential to choose a good option that ensures transparency in the process and sound legal advice.
