Is it possible to sell or buy half of a house?

Selling 50% of a property or buying a share in a house is more common than we think, especially in cases of divorce or separation when partners share a home, as well as when inheriting from multiple siblings or purchasing a house with friends.

If you find yourself in such a situation, the steps you should take are very similar to those of a regular purchase and sale, but you should also consider some factors to avoid risks and conduct the transaction correctly. It is especially recommended to reflect the new situation in the Property Registry. We will guide you on how to sell or buy half of a residential property, step by step.

Can you sell or buy half of a house?

In fact, it is very common for two or more people to be co-owners of a property at the same time. This is what we call joint ownership or cooperation. We can also talk about joint tenancy, which exists when the property or right belongs undivided (that is, not divided) among several individuals. This means that each member of the community will own their share.

For example, such a situation can arise when a couple buys property together (or in different proportions depending on each person's financial capabilities). Other forms of co-ownership are accidental and not voluntary, such as when several siblings inherit property, with each owning a certain percentage or share of it. These shares or "parts" of the property can be subject to buying and selling: in fact, there are even companies that buy half of a house, although the most profitable option for the seller is usually to sell their share to the owner or owners of the remaining property or to sell the share on the market.

How to sell half of a house?

The sale of 50% of a residential property can be carried out in various ways:

Economic compensation for a co-owner: The buyer pays the owner compensation for their share so that the owner becomes the sole owner of the property (or to increase their share if there are more than two owners). This method is very common in the case of divorce.
Real estate sale: If all parties agree, it is also possible to sell the property to a third party who will become the owner of all shares. It is also possible to sell the entire property to two or more individuals who will become new co-owners. For example, a divorced couple can sell their home to another couple. In the absence of an agreement among co-owners, it is necessary to go to court for the division of joint property, based on the principle that no one can be forced to remain in joint ownership. This is not a recommended path, as the property is likely to end up at auction, which will reduce the amount the parties can receive. Additionally, the "paperwork" involved in the transfer of ownership will be very similar in all cases: the transaction must be formalized by a notary, recording the will of the different interested parties, and it is recommended that the transfer of ownership be registered in the Property Registry.

How to buy half of a residential property?

As for buying half of a building, it's enough to come to an agreement with the seller, who could be your former partner, friend, relative, or a third party... This type of deal usually occurs when we already have a share in the building and want to become full owners.

If we acquire a share of a residential property through the dissolution of joint ownership, we will have to pay a property transfer tax (from 6 to 11 percent). The seller will have to pay the municipal value-added tax.

How can I buy half of the living space from my partner?

As we have seen, we can buy half of our former partner's apartment either through the termination of joint ownership or through a sale. Both options are possible, but the first is preferable from a financial standpoint. However, for the termination of joint ownership to be possible, the consent of both parties is required. Consent is also necessary for a full sale and the division of the price between them.

The most difficult and least advantageous option is that, in the absence of agreement, one party files a lawsuit against the other to force the sale of the property through the joint ownership division process. The court will decide to hold an auction for the property, which will result in a loss of its value, although you may be able to set some minimum conditions for the auction.

Is it possible to sell half of a property that has a mortgage on it?

It is also possible to sell half of an apartment that has a mortgage, and in fact, this is a very common situation during a divorce or division of property, when one party sells their share to the other party. However, the bank must agree to this transaction, and it may be necessary to renegotiate the terms or impose additional requirements on the buyer. There may also be a refusal from the bank, in which case other options will need to be considered.

If you have decided to acquire all the property and compensate the other party, you will need to refinance and become solely responsible for the mortgage payments. The bank may not agree to this or may require additional guarantees. If you are selling the property, you can sell it with or without a mortgage. The most common option is to pay off the loan using the funds obtained from the sale, which is a less complicated option. The buyer will need to secure their own financing if necessary.

About the author:

I am a graduate in journalism and law, and I work as a content writing specialist in the fields of law and economics. I write for Idealista News about the legal aspects of real estate. With over 10 years of experience in this area, my main goal has always been to inform, striving to simplify the understanding of legal language. I am happy to be part of this team!