Partition of co-owned property; buying out a share: what to do under Georgian law

What to do

1. Classification: joint ownership that is not between spouses and not an undivided inheritance (for former spouses, the limitation period is 3 years (Civil Code, Art. 1171)). Shares follow the registry extract; shares are equal unless otherwise established (Civil Code, Art. 954).
2. Right to exit: any co-owner may demand partition at any time (Civil Code, Art. 961); a demand for partition is not subject to limitation (Civil Code, Art. 968). An agreement not to divide does not prevent partition for a valid reason (Civil Code, Art. 961). A time-limited ban on partition ceases on the death of a co-owner, unless otherwise agreed (Civil Code, Art. 962).
3. Method of partition: partition in kind is possible only if the object can be divided into homogeneous parts without loss of value (equal shares are allocated by lot) (Civil Code, Art. 963). Otherwise the object is sold and the proceeds are divided (Civil Code, Art. 964). A plot is sold under the rules of a compulsory auction (Civil Code, Art. 964). If it is not sold, any party may demand a repeat auction at its own risk and expense (Civil Code, Art. 964). An apartment usually cannot be divided without loss of value. A share may be bought out only by agreement; the general rules contain no compulsory buy-out of a 'small share'.
4. Without a court: each co-owner disposes of their own share independently, but the object as a whole only with all co-owners together (Civil Code, Art. 959). A pre-emptive right to buy a share exists only by law or by agreement (Civil Code, Art. 959).
5. Before partition: each co-owner may use the object without interfering with the others (Civil Code, Art. 955). A co-owner's share of use may not be reduced without that co-owner's consent (Civil Code, Art. 957). Expenses are borne in proportion to the share (Civil Code, Art. 960). A co-owner's debt concerning the common property is covered from their share at partition (Civil Code, Art. 966).
6. Procedure: a written proposal for partition or buy-out, then either an agreement registered in the Public Registry or a claim. A claim for partition of immovable property is brought in the court where the property is located (Civil Procedure Code, Art. 18). Valuation is carried out by expert examination.
7. Where to apply: the district (city) court; the Public Registry, for registering the partition agreement; a notary.
8. Evidence: registry extract (shares, encumbrances), cadastral or technical plan, valuation, receipts for expenses, correspondence containing the proposal.
9. Pitfalls: considering the partition claim 'expired'; waiting for a compulsory buy-out of a share on the Russian model; demanding partition in kind of an indivisible apartment, which will result in a sale.

Be sure to check

• any co-owner may demand partition at any time; there is no limitation period (for former spouses, it is different)
• partition in kind only without loss of value; otherwise sale and division of the proceeds
• a share may be sold without the others' consent; the common object only together
• use and expenses before partition; the court at the location of the immovable property