Selling a jointly owned or inherited property in Belgium

Selling together

If all the co-owners agree, the property can be sold, privately or at a public sale through a notary. The price first pays the debts (outstanding mortgage balance, selling costs). The rest is shared according to each person’s rights. The selling steps are those of an ordinary sale: see the steps to sell your home.

All the co-owners sign the sale agreement (compromis) and the deed, or give a power of attorney. Agree in advance on the minimum price, any estate agent and how the costs are shared. If a co-owner hesitates, the discussion is best settled with a notary before the property is put on the market.

Remaining in joint ownership: the joint ownership agreement

The co-owners can agree to remain in joint ownership. According to notaire.be, this agreement can bind them for five years at most. It can be renewed, with no legal limit on the number of renewals. A longer agreement is not void, but it is binding only for five years.

Buying out the others’ shares

A co-owner can buy the shares of the others: this is the transfer of undivided rights. The price must reflect what each person would receive from a sale. Notaire.be gives a registration duty (droit d’enregistrement / registratiebelasting) of 1% for this case (2.5% in Flanders). The page describes a base calculated on the whole property when the buyer becomes sole owner, and on the transferred share otherwise. As the texts differ between Regions, have your notary calculate the amount.

Partition duties: the Brussels example

In Brussels, be.brussels states that the partition duty is 1%. It is due when the co-owners divide the property between them, or when one transfers their share to another co-owner (for example a spouse buying out the ex-spouse’s share). The base is the agreed value, which may not be lower than the market value.

• If the joint ownership continues after the transfer, the duty is charged on the value of the shares transferred.
• If the transfer ends the joint ownership between all the co-owners, it is charged on the value of the whole.

Example from be.brussels: a building worth €300,000 belongs to A, B and C, one third each. A transfers their third (€100,000) to B: duty of €1,000. Later, B transfers their two thirds (€200,000) to C, who becomes sole owner: the duty is charged on €300,000 and comes to €3,000.

For Wallonia, the official pages consulted do not give the rate: ask your notary or SPW Fiscalité (the Walloon tax administration). In Flanders, notaire.be mentions 2.5%. An undated notaire.be page, with no Region specified, quotes 2.5% for de facto cohabitants and 1% for spouses and legal cohabitants: see buying together. The applicable rate depends on the Region and your situation: confirm it with the notary.

In case of disagreement

No one can be forced to remain in joint ownership. According to notaire.be, a co-owner can apply to the Court of First Instance. The court orders the end of the joint ownership and appoints a notary to conduct the sale. A public sale follows, with the possibility of a higher bid (surenchère). An appeal suspends the procedure. This route is described as longer and more expensive. It is better to seek an agreement, for example through a neutral notary or a mediator.

Inherited property

As soon as there are several heirs, they become co-owners of the deceased’s assets. They then choose to remain in joint ownership or to divide.

• Amicable division: if all the heirs agree, they share out the assets as they wish. For a building, the notary has the decision recorded at the mortgage registry (conservation des hypothèques).
• Court-ordered division: in case of disagreement, an heir applies to the court, which orders the division and in principle appoints a notary. The procedure is long and expensive. The heirs can reach an agreement at any time, before the notary or the court, and the agreement binds them definitively.
• Sale of the building: division in kind is preferred. The building is sold if the parties decide so or if it cannot be divided in kind. In the case of a public sale, the notary sets the conditions of sale (cahier des charges).

The notary draws up a statement of liquidation and a draft division. An heir can challenge it in writing (the “contredits”), within legal time limits, and the court decides. The appointed notary is neutral and impartial.

And the capital gain?

Notaire.be states that the rule taxing a built property resold within 5 years concerns purchases and gifts, not inheritance. See capital gains on property. For inheritance tax and gifts, see gifting property.

Which professional to consult

The notary is the key person: they calculate the duties, draft the agreement, prepare the draft division and carry out the sale. A lawyer can step in in case of disagreement or court proceedings. An estate agent can sell the property, with the agreement of all the co-owners: see the brokerage contract. A surveyor (géomètre-expert / landmeter-expert) can help if the property has to be divided: see the surveyor.