Undivided ownership of real estate: the keys to a worry-free purchase
The purchase of an undivided property is a frequent option for couples, whether they are married, in a civil partnership or cohabiting. However, this type of acquisition raises important questions about ownership, financing and the consequences in the event of separation or death. Here's a practical guide to understanding the specifics of each situation and making the best choices.
1. buying real estate while married: the importance of the matrimonial property regime
The community property regime
For couples married under the community property regime, the property acquired is generally common property, provided it is financed with common funds (the couple's savings or a joint loan). However, if one of the spouses uses his or her own funds (inheritance, donation or pre-marital savings), the property may be considered as owned by the couple, provided that certain formalities are respected, such as the declaration of re-investment in the deed of purchase.
In the event of a partial contribution by a spouse, financial adjustments (rewards) will have to be made when the community is dissolved, whether by divorce or death.
The separation of property regime
Under this system, each spouse retains full ownership of the real estate he or she acquires alone. In the case of a joint purchase, the property is held in joint ownership according to the shares indicated in the deed of purchase. In the case of a loan, each spouse may finance his or her share individually, or take out a joint and several loan.
Under the regime of participation aux acquêts, the procedure is the same as for the regime of separation as to property.
2. buying property as PACS partners: a choice between separation and joint ownership
PACS partners must choose between two systems:
- Separation as to property (the default system since 2007): each property is attributed to the person who financed it, unless otherwise specified. The respective shares must be specified in the deed.
- Indivision: property acquired after the PACS is registered belongs equally to each partner, regardless of their financial contribution. This offers security of ownership, but limits adjustments in the event of unequal contributions.
3. property purchases by cohabitants: clear but sometimes risky rules
Cohabitees who buy together are subject to the rules of joint ownership laid down in the French Civil Code. Ownership is defined according to the shares recorded in the notarial deed. However, unlike married or civil union couples, cohabitants have no automatic inheritance rights. A will is essential to protect the surviving partner, although taxation remains high (60% inheritance tax).
4. the fate of undivided property in the event of separation or death
In the event of separation
- Married couples: depending on the matrimonial regime, the property may be shared, sold or kept in joint ownership. Financial adjustments (balancing payments) are sometimes necessary.
- Civil union or cohabitation: the property is divided according to the shares mentioned in the deed ofcohabitation. If this is not specified, the property is deemed to be held in equal shares.
In the event of death
- Surviving spouse: has a lifetime right to the family home, unless the deceased spouse has asked for it to be annulled by an authentic will (drawn up at a notary's office).
- Civil union partner: free use of the home for one year.
- Surviving cohabitee: no automatic protection without a will.
5. pitfalls to avoid and practical advice
- Mentioning your own contributions: Whether you're married, in a civil union or cohabiting, be sure to state precisely in the deed of purchase your respective contributions, particularly your own funds.
- Prepare for the future: Consider a joint ownership agreement to define the rules for managing the property (sale, maintenance, occupation).
- Protect the survivor: For cohabitants and civil union partners, drawing up a will is crucial to guarantee inheritance rights.
6. conclude a property purchase with peace of mind
Buying property in joint ownership requires a thorough understanding of the rules applicable to your marital or partnership situation. Calling on the services of a notary is essential to ensure the legal security of the transaction and avoid disputes. Planning, anticipating and formalizing are the key words in transforming your real estate project into a successful acquisition.
If you're thinking of buying a property, don't hesitate to call on the expertise of a professional to help you make the right choices and ensure the longevity of your investment.
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