The French Civil Code regulates co-ownership under two distinct sections:the section on inheritance and the section on agreements related to the exercise of co-ownership rights. The former governs statutory co-ownership, which typically arises through...
The French Civil Code regulates co-ownership under two distinct sections:the section on inheritance and the section on agreements related to the exercise of co-ownership rights. The former governs statutory co-ownership, which typically arises through inheritance, while the latter addresses contractual co-ownership, which is established by agreement between parties. Roman law identified three fundamental principles of co-ownership:temporariness, individual rights, and the unanimity rule. The French Civil Code initially reflected these principles, but the 1976 reform introduced the principle of majority rule, modifying the traditional framework to some extent.
Under the French Civil Code, co-owners may take actions related to the preservation, management, and disposition of co-owned property. Preservation measures refer to actions necessary to maintain the property and can be undertaken by any co-owner without requiring urgency or prior approval from others. Management acts include actions intended to maintain or enhance the value of the property. Disposition acts involve the transfer of ownership rights over the co-owned property. While the general rule requires unanimity among co-owners, the majority rule applies in specific cases, allowing decisions to be made by co-owners holding at least two-thirds of the shares. Furthermore, co-owners may delegate management authority to another co-owner or a third party through an agreement. In certain situations, the court may also authorize actions in place of a dissenting or absent co-owner, ensuring the efficient management of the property.
Although inheritance is the primary source of co-ownership, it may also arise from contractual agreements between parties. Contractual co-ownership agreements must be in writing and may last for a maximum period of five years, subject to renewal. If such an agreement is not renewed, the co-ownership relationship transitions into statutory co-ownership, subject to the general rules of the Civil Code.
Through this framework, the French Civil Code establishes a balanced system that facilitates the use and administration of co-owned property while providing mechanisms to resolve disputes. By integrating both unanimity and majority rule, it ensures flexibility and stability in co-ownership relationships, accommodating the interests of all co-owners while maintaining the integrity of shared property.