Co-ownership Dissolution & Receivership · Legal briefing
Property Partition: Division or Sale?
By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:
The practical dilemma
One co-owner seeks physical division; another seeks sale of the entire property. How does the court assess the alternatives?
The legal position
Section 39 of the Land Law prefers division in kind when possible. Section 40 addresses sale where division is impossible or causes substantial loss, allowing judicial discretion over an efficient and fair sale method. Section 42 allows condominium registration in suitable cases. Planning, valuation and registration assessments, and sometimes balancing payments, are needed. Neither sale nor a physical unit is automatic for every urban property. Official source 1
Your next step
Obtain professional assessments of division and registration, compare costs and values and present a workable alternative with balancing payments where needed. Consider whether agreement or division offers a better result before requesting receivership.