One brother wants to keep the family home, while the other prefers to receive his share in cash. The notary is waiting for both at the same appointment, but no one agrees on the price. This situation is commonly encountered in the majority of inheritance or post-separation co-ownerships. Successfully buying out a share in co-ownership between co-owners requires mastering a few specific mechanisms, from calculating the buyout amount to appearing before a notary.
April 2026 Law and Two-Thirds Majority: What Changes for Exiting Co-Ownership
The legal framework for exiting co-ownership has evolved with the law n° 2026-248 of April 7, 2026, which modifies the options available to majority co-owners compared to the initial provisions of article 815-5-1 of the Civil Code.
Read also : The latest fashion trends to discover for a unique style this season
Co-owners holding at least two-thirds of the indivisible rights can now express their intention to proceed with the alienation or division of the property before a notary. The notary then notifies this declaration to the other co-owners within set deadlines.
In practice, this procedure often serves as leverage: the minority co-owner blocking a buyout of a share in co-ownership faces a clear alternative, either accept the proposed buyout amount or risk a sale imposed by the majority. This mechanism tends to accelerate amicable negotiations well before reaching the court.
Recommended read : Complete guide to successfully invest in LMNP real estate in 2024
Property Valuation and Buyout Amount Calculation: Concrete Pitfalls
The amount of the buyout is not simply the property price divided by the number of owners. First, a reliable estimate of the market value of the indivisible property must be obtained, and this is where tensions arise.
Why a Single Estimate Is Not Enough
Each co-owner has an interest in pushing the price in a different direction: the one buying wants a low estimate, while the one selling their share wants a high estimate. The most robust solution is to obtain at least two independent value opinions (local real estate agencies, or even a property expert for atypical properties).
The notary can also provide an estimate, but feedback on this point varies: some notaries limit themselves to endorsing an agreed price between the parties without conducting a thorough market analysis.
Deducting Liabilities Before Setting the Buyout Amount
The buyout amount is calculated on the net asset, not on the gross value. If a mortgage is still outstanding on the property, the remaining capital owed is deducted from the estimated value. It is then distributed according to each party’s share.
- A property estimated at a certain value with an ongoing loan: the buyout amount is based on the difference between value and remaining capital owed, prorated to the purchased share.
- Works financed by a single co-owner may give rise to a claim on the co-ownership, which modifies the final calculation.
- Notary fees (transfer duties, fees) are added to the total cost for the buyer of the share and must be anticipated in the financing plan.
Financing the Buyout of a Share: Mortgage Loan and Home Equity Loan
Buying out a share in co-ownership often costs more than expected once notary fees are included. There are two main financing options available.
The traditional mortgage loan works if the buyer presents a solid file (stable income, controlled debt ratio). The bank treats this file as a standard real estate purchase, with a mortgage guarantee on the property.
The home equity loan, sometimes referred to as a reverse mortgage in certain arrangements, is aimed more at profiles with real estate assets but insufficient income for a traditional loan. The lending conditions are more flexible regarding income, but the interest rate is generally higher.
A often overlooked point: the bank requires that the co-ownership be cleared before releasing the funds. The notarial act of buyout and the release of the loan therefore occur simultaneously, necessitating close coordination between the notary and the lending institution.
Court Auction: When Amicable Buyout Fails
If no agreement is reached despite the two-thirds procedure, the judicial court can order a court auction, meaning a sale by auction of the property. Practitioners in inheritance law have noted an increase in requests for judicial partition, particularly regarding family homes where the disagreement concerns value.
The auction is rarely advantageous for the parties. The property often sells for less than its market value, and procedural costs (lawyer, auction fees, duties) reduce the proceeds from the sale. It is more often used as a means of pressure to unlock negotiations than as a true final solution.
- The judge can set a starting price, often lower than the amicable estimate.
- Any co-owner can bid during the sale.
- Procedural timelines vary significantly by jurisdiction, sometimes taking several years.
Before reaching that point, proposing notarial mediation remains the best option. The notary can draft a report of difficulty that formalizes the points of disagreement and opens a structured negotiation framework.
A buyout of a share in co-ownership hinges on three elements: a solid contradictory estimate, a financial arrangement finalized before the appointment with the notary, and knowledge of recent legal levers, particularly the two-thirds procedure stemming from the April 2026 law. The co-owner who masters these three points negotiates from a position of strength.