What does it consist of?

First, it is important to understand what a community or condominium is. This occurs when a property or right is shared among multiple people.

Additionally, ownership shares are assigned to each participant. If the shared asset is real estate, it is called co-ownership or condominium, although the three terms are often used interchangeably.

Once the concept of a community is clear, we can discuss the termination or dissolution of a condominium. Essentially, this occurs when the situation of shared ownership of a property ends.

Other terms such as pro indiviso, co-ownership, or community of property may also be used, but they all refer to the same concept.

Types of Condominium Termination

Termination by Mutual Agreement

When all parties agree, canceling the condominium is straightforward: one party may buy out the others’ shares, or a party wishing to exit may receive compensation. The property can also be sold, and the proceeds divided among the owners according to their shares.

Before proceeding, owners must appraise the property and agree on the method. They may then go to a notary to execute a deed formalizing the transaction, paying the necessary taxes. If the property is a couple’s house in a divorce, the agreement must also be included in the regulatory agreement, and once approved by the court, that agreement and the judgment become the deed of condominium cancellation.

Termination via Judicial Process

If no agreement is reached, the only option is to go to court and file a petition to divide the property. The court will decide whether each party receives a portion or if the property is sold and the proceeds divided. While there is no specific procedure in the law for this, it is usually carried out through a public auction.

Required Documentation

• Ownership titles of the properties subject to the dissolution.

• ID (DNI) of co-owners. If a company is involved, valid powers of attorney or appointments of administrators.

• For urban properties, a certificate from the homeowners’ association confirming that community fees are up to date.

• Cadastral references of the properties (latest IBI receipt).

• Information on whether the properties are rented.

• Value assigned to each property.

• Method of allocating the properties to the co-owners.

• Payment of transaction costs: notary fees, municipal capital gains tax (if urban properties).

Situations in which this service can be used

The causes for condominium termination are established in Articles 395 to 406 of the Civil Code.

The Civil Procedure Law must also be considered if the division of assets is carried out via judicial auction.

In principle, the causes for condominium termination are the same as for the termination of ownership, such as abandonment, destruction, or usurpation.

However, due to the nature of co-ownership, the Civil Code establishes specific causes:

• Waiver of co-owners’ rights in favor of one of them.

• Sale of the property to a third party and distribution of the proceeds among community participants.Division of common property. Any co-owner may request a division of assets. This is a judicial process, and initiating the division declares the condominium terminated. The result may be: Material division, creating separate horizontal properties. Economic division if the property is indivisible; one owner retains the property, and others receive compensation according to their shares. Division by auction if no agreement is reached among the parties.

The most common cause for terminating a condominium is the owners’ desire not to continue as part of the community. However, as noted, it is not the only cause.