Is it possible to buy 50% in a property?

Buying half of a house may sound unusual, but it's completely legal and common, especially in divorce, inheritance, or investor agreements.

In this article, I explain step by step how it works, what rights and obligations you have, and what precautions you should take if you're considering acquiring a 50% % interest in a property in Spain.

Can 50% of a property be purchased? – Legal basis for joint ownership

Yes, from a legal point of view, You can buy or sell 50 % (or any percentage) of a property. It is clearly established by the Civil code, in its article 400 and following, which regulate the figure of the co-ownership either joint ownership.

• There is no requirement that the property be physically divided.
  
• The seller transmits a abstract quota, not a specific part of the property.
  
• Each owner can sell his share without asking permission – unless there is a agreed indivision pact for a specified duration.
  

This arrangement is common in joint property, shared inheritances, or joint purchases between several people.

Is it legal to sell half of my house? – Rights, limitations, and exceptions

1. Individual rights: Any co-owner you can sell your share without authorization, even without notifying the rest.
2. Right of withdrawal and first refusal: Other co-owners do not have automatic legal preference, unless there is a contractual agreement or statutory. In some cases (e.g., renting or leasing), the right of first refusal is activated.
3. Pact of indivisionIf the co-owners have signed an agreement to maintain co-ownership for a period of time (up to 10 years), they will not be able to sell without the agreement allowing it.
4. Property registrationThe sale of an undivided share must be registered in the Property Registry by public deed. Otherwise, it has no effect on third parties.
5. Functional indivisibility: If the thing is indivisible (e.g. a complete house), any co-owner can judicially request its forced division or sale, with price sharing.

Why buy a 50% stake in a property? – Common reasons

🏠 Divorces or separations

One spouse can buy out the other to avoid having to sell the house, allowing for a quick resolution and avoiding prolonged conflicts.

👨‍👩‍👧 Shared inheritances

Siblings, cousins, or heirs may agree that one acquires 50% of the property without renouncing cohabitation, or before physically dividing it.

💼 Investment as a couple or partner

Buying half allows you to enter into a shared real estate project, maintaining a equivalent control on the property.

🏢 Fractional investment or co-ownership post-Pacaso

Funds or companies like Pacaso offer the purchase of a percentage of a luxury home, especially in cities like Madrid.

How to buy a 50% % home? – Key steps

1. Agreement between parties

It is essential that buyer and seller clearly define the percentage, price, and conditions: use, maintenance, future restrictions, etc.

2. Valuation or appraisal

It is recommended to have the entire home appraised by an official appraiser. Half is calculated proportionally. The appraisal protects both parties against future cost overruns.

3. Legal and tax advice

A specialized lawyer must draft the contract, inform about ITP, AJD, VAT and personal income tax withholdingsThey will also advise you on any mortgages or encumbrances.

4. Financing

The buyer may request a surrogacy on the mortgage, extend it, or take out a new one. The bank must guarantee the change of ownership.

5. Public deed and registration

The deed of transfer of the share is signed before a notary and the new owner is registered in the Registry, notifying the percentage acquired.

6. Notaries, taxes and expenses

• Property Transfer Tax (ITP) if it is second hand.
  
• VAT if the house is new.
  
• AJD about writing.
  
• Notary and registration fees.
  
• Possibly costs for partial or total cancellation of the existing mortgage.
  

What does it mean to be a 50/50 co-owner of %? – Rights and obligations

1. Rights of useEach owner may use the property according to an agreement. If there is no agreement, the uses must be decided by a majority.
   
2. Costs and expenses: All expenses (mortgage, community, renovations, insurance) are shared according to percentage, unless otherwise agreed.
   
3. Acts of disposition: To sell, mortgage or make relevant alterations, the consent of all or the majority according to quotas is required.
   
4. Division or forced saleA co-owner may petition the courts to dissolve the condominium. If the property cannot be sold, the judge will order its sale and divide the price.
   
5. Departure of a partnerIf one wants to leave, they can freely sell their share. If they delay, another co-owner can request the dissolution of the condominium.
   
6. Shared mortgage: If the property is mortgaged to 50%, both They remain “100%” responsible. in front of the bank.

Dangers and how to avoid them

1. Future conflicts: Use, alterations or sale can be a source of disagreement. A co-ownership protocol that regulates these aspects.
   
2. Passive/irresponsible co-ownerIf one does not contribute to expenses, the other can pay and then legally demand compensation.
   
3. Cross-border sales: Companies buy shares at very low prices from pressured co-owners.
   
4. Mortgage defaultIf one defaults, the other must assume full payment or face foreclosure.
   
5. Unfulfilled pactsIf there is an agreement of indivision and someone sells, the sale can be legally challenged.
   

Similar alternatives to 50 %

• Bare ownership: Sale of the home in exchange for a lifetime usufruct. Widely used by retirees.
  
• Business co-ownership type Elite Income or Pacaso: Each member acquires shares in an SL that owns the property, allowing use and sale according to the bylaws.
  
• Timeshare: Temporary rights of use, but without actual ownership (not recommended if you are seeking ownership).
  

Final expert advice and best practices

• Write a co-ownership agreement that includes clear clauses on use, expenses, responsibilities, termination and exit.
  
• Prioritize the advice of a lawyer and tax advisor, this way you will avoid tax and legal surprises.
  
• In case of a mortgage, check with the bank if it allows the partial subrogation of the loan.
  
• Consider the option of opting for a SL or contractual figure to formalize co-ownership in a business form.
  
• If the situation raises doubts or you want a safe experience; count on a personalized real estate advice —Companies like Luxus Real Estates provide expertise in shared ownership, inheritance, and divorce.
  

So…

• Yeah, you can buy 50 % of a property in Spain legally and with documentation.
  
• There are clear rights (free sale of the quota) and obligations (registration, contributions, consensual use).
  
• If they are not properly regulated from the outset, conflicts or even complicated legal disputes can arise.
  

If you're considering this option, I recommend having solid legal and tax support, a neutral appraiser, and a usage protocol. And if you're looking for personalized real estate adviceWith experience in co-ownerships and complex situations, companies like Luxus Real Estates can guide you step by step.