How can participants of joint ownership donate, sell or exchange their share in the joint ownership?
Each participant of joint ownership may donate, sell or exchange their share in the joint ownership only by the agreement of all the other participants.
According to Article 198 of the RA Civil Code, the property in joint ownership shall be disposed by the agreement of all the participants, regardless which participant enters into the transaction for disposition of property.
When selling or exchanging the property in joint ownership in addition to the requirements of Article 198 of the RA Civil Code, the rules of Article 195 of the same Code are applied. This provides that when selling of a share in the right of common ownership to third persons, the other participants of shared ownership shall have preferential right of purchase, by the selling price and under other equal conditions, except for the case of the sales through public bidding. The seller of a share shall be obliged to notify in writing the other participants of shared ownership about his or her intention to sell his or her share to a third person, with indication of the price and other sales conditions. When other participants of shared ownership refuse to purchase the share being sold or fail to acquire the share in the right of ownership to immovable property within a period of one month and in the right of ownership to movable property — within a period of ten days upon receipt of notification, the seller shall have the right to sell his or her share to any person.
Under Article 589 of the RA Civil Code, the rules on the purchase and sales shall apply respectively to the exchange contract, unless it contradicts the provisions of this Chapter and the essence of exchange. Moreover, each of the parties shall be deemed to be the seller of the goods which he or she is obliged to transfer, as well as the purchaser of the goods which he or she is obliged to accept in exchange.
Notary Public of Nor Nork District.
“Public Notary Clarifies” heading is the joint initiative of Iravaban.net and the Notary Chamber of the RA, which is aimed to raise the level of legal awareness of the population.