CO-OWNERSHIP INTERESTS IN REAL ESTATE AS A FORM OF INVESTMENT

If there is a legal ground for the use of the immovable by the other co-owners beyond their co-ownership share, this means that there is, for example, a decision of the co-owners (or a court decision, etc.), on the basis of which one (or more) of the co-owners is entitled to use the immovable to an extent smaller or larger than their co-ownership share. Thus, for example, a situation where the other co-owners have agreed that the new co-owner will use the thing to a lesser extent than his/her co-ownership share, or another co-owner(s) to a greater extent than his/her/their co-ownership share.

In such a situation, the new co-owner (as a limited co-owner) is entitled to compensation for the limitation of his/her co-ownership right which results from the mere fact that he/she can use (or benefit from) the thing only to a lesser extent. The right to compensation arises from Article 11(4) of the Charter of Fundamental Rights and Freedoms, as well as from the guarantee of the right of the co-owner to share in the rights and obligations of the common property to the extent of the co-ownership share pursuant to Section 1126 of Act No 89/2012 Coll., Civil Code.

However, significantly more frequent are cases where there is no legal reason for the use of the property by other co-owners beyond their co-ownership share, i.e. there is no agreement of the co-owners or court decision, etc., which would justify the use of the property beyond the co-ownership shares. In such a situation, the new co-owner is entitled to claim unjust enrichment against the other co-owners who use the common immovable property beyond their co-ownership shares, since, as stated above, there is no legal basis for such action.

The standard procedure is then to send a pre-litigation demand to the other co-owners for the recovery of the unjust enrichment, which also includes a quantification of such enrichment. Depending on the response of the other co-owners, either an amicable solution can be negotiated (e.g. regular monthly payments of a certain amount, purchase of the co-owners' shares or a favourable sale of the new co-owner's share) or the claim can be pursued in court (action for unjust enrichment).