Investment approach
Buying together in Catalonia: shares, exit, the co-owners' agreement
In Catalonia co-ownership is governed by the Catalan Civil Code: shares are equal by default, co-owners have pre-emption rights and division can be demanded any time. What to settle before the deed.
Buying a flat jointly in Catalonia is set up as shared ownership by shares, and its rules are set by the Catalan Civil Code, not only the Spanish one. Co-owners' shares are presumed equal unless shown otherwise (art. 552-1 CCCat, the Código Civil de Cataluña), and any of them may demand division at any time (art. 552-10). That is why shares, costs and the order of exit are written down before the escritura (deed) is signed.
What proindiviso is and how it works in Catalonia
Proindiviso is shared ownership in which each co-owner holds not a room but a share in the right over the whole flat. In Catalonia this regime is called comunidad ordinaria indivisa and is set out in book five of the Código Civil de Catalunya.
The main rules are in the table. Which law applies to a particular deal, especially if the buyers are foreigners or spouses, is decided by an abogado (lawyer).
| Question | CCCat rule | What to put in the co-owners' agreement |
|---|---|---|
| Size of shares | Presumed equal unless shown otherwise (art. 552-1.3) | Shares by actual contributions, directly in the escritura |
| Sale of your own share | Free (art. 552-3) | How a share is valued on exit |
| Sale of a share to an outsider | The others have a pre-emption right: a month after notification, three months to exercise it after a sale made without notice (art. 552-4) | Keep the right or exclude it, only in an escritura pública |
| Day-to-day decisions | Majority by shares (art. 552-7.2) | Who manages the letting and repairs |
| Sale of the whole flat | Unanimity (art. 552-7.6) | What to do in case of disagreement |
| Costs | In proportion to shares (art. 552-8) | Who pays the mortgage, IBI, community fees and repairs |
| Division | Any co-owner at any time; an agreement not to divide, for no more than 10 years, by unanimity (art. 552-10) | Term of indivisibility and the order of extension |
What happens if the co-owners do not agree
If one co-owner wants out and the others are against, that co-owner may demand division through the courts or arbitration (art. 552-11). The flat is not physically divided: under Catalan law an indivisible thing is awarded to the co-owner who has an interest in it and, if there are several interested, to the one with the larger share. That co-owner pays the others the appraised value of their shares. If nobody is interested, the flat is sold and the money split.
There is also the four-fifths rule: a co-owner with a share of 80% or more can demand that the whole flat be awarded to them, paying the others the appraised value of their shares (art. 552-11.4). How division works in practice, and why buying someone else's share is not a short route to the property, is covered in detail in the article on proindiviso and dividing a common thing.
Why shares must be stated precisely: a worked example
Worked example, not a forecast. Two people buy a flat for 500,000 €. The first contributes 350,000 €, the second 150,000 €.
| How it is set up | First buyer's share | Second buyer's share |
|---|---|---|
| Shares not stated, the presumption of equality applies | 50% | 50% |
| Shares by contributions stated in the escritura | 70% | 30% |
| The first contributed 400,000 €, the second 100,000 € | 80% | 20% |
With no shares stated, the second buyer formally gets half the flat although they put in 30%, and will have to prove the difference in a dispute. With shares of 80 and 20, the first co-owner can by law demand the whole flat, paying the second the appraised value of their share, even if the second does not want to sell. These consequences are worth seeing before signing, not at the first conflict.
What to put in the co-owners' agreement before buying
The escritura fixes the shares, but relations between co-owners are better described in a separate agreement (pacto de comuneros), signed at a notary.
- Shares and their basis: who contributed how much and how future mortgage payments are accounted for.
- Costs: comunidad (homeowners' association) fees, IBI (local property tax), insurance, repairs, who pays and what happens on non-payment.
- Use: who lives there, whether it can be let, how the rental income is split.
- Exit: how a share is valued, whether the others have a pre-emption right and at what price.
- The term of indivisibility, no more than 10 years, and the order of extension.
- Inheritance: what happens to a share on a co-owner's death and whether the others have the right to buy it from the heirs.
If the buyers are spouses or a couple, the matrimonial property regime is added to these questions, covered in the article on the matrimonial property regime in Catalonia.
How joint buying relates to a mortgage
If the loan is taken out in the name of several borrowers, the bank assesses each, and the type of liability is written in the contract. With joint and several liability, the bank can claim the whole debt from any borrower, and how payments are split within the family does not affect that. How to take out a loan for two and what joint and several liability means is described in the article on a mortgage for two.
When proindiviso does not suit
Shared ownership works badly when participants have different horizons: one wants to hold the flat for years, another to exit in two or three. The right to demand division at any time turns such a divergence into a risk of a forced sale or a buy-out at an appraised value.
Nor does it suit as a form for an investment project with several participants: there decisions on renovation, letting and sale have to be taken quickly, and the unanimity needed for a sale can block an exit. Which forms of joint ownership are used in projects is covered in the article on joint investments. The structure of a specific purchase can be discussed through the contact page.
Questions and answers
Can a co-owner be forced to sell the flat?
Not directly, but any co-owner may demand division. Under Catalan law an indivisible flat is awarded to an interested co-owner, who pays the others the appraised value; if there is no one interested, it is sold.
Can an agreement not to divide the flat for many years be made?
Yes, by unanimous agreement, but for no more than 10 years under art. 552-10 CCCat. It can be extended by a new agreement.
Can a co-owner sell their share to an outsider?
They can, but under art. 552-4 CCCat the others have a pre-emption right to buy it on the same terms. This right can be excluded, for real estate only in an escritura pública.
What shares apply if they are not stated in the documents?
In Catalonia shares are presumed equal until shown otherwise. That is why shares by actual contributions are stated directly in the escritura.
Are all co-owners liable on the mortgage?
If the loan was taken out by several borrowers jointly and severally, the bank may claim the whole debt from any of them, regardless of who actually pays.
