Auction Between Joint Owners

(Decision of the Supreme Court from 3 August 2016, file no. 22 Cdo 2208/2015)

In this case the court examined the legal action on termination and settlement of the joint ownership. Both parties demanded to become a sole owner of the immovable property which was the subject matter of the action. The court subsequently ordered an auction to be organized just between the joint owners. However, according to the plaintiffs the court did not consider the question to whom the immovable property should be ordered to sole ownership, at all.

The Supreme Court decided that it is not possible to order an auction between the joint owners.

According to the Supreme Court it is necessary to maintain a hierarchy specified by the law. Firstly, it has to be considered if the property can be divided or if it can be ordered to sole ownership of one of the parties. If both parties are interested to own the property as in this case, it is not possible to order an auction, even organized just between the joint owners.