Forced property sale in joint ownership in the UAE : amicable exits, partition claims and judicial auction

Where real estate is held in joint ownership (co heirs, former spouses, investment partners) and the co owners cannot agree on a way forward, one potential outcome is a forced sale. Under the UAE Civil Transactions Law and the rules of the civil/real estate courts, a co owner may pursue an exit from indivision through amicable arrangements or court proceedings, which can culminate in a judicial auction and distribution of the proceeds.

What is joint ownership?

Joint ownership commonly arises when:

• Succession: multiple heirs inherit the same asset;
• Relationship breakdown: property acquired jointly before separation;
• Co‑investment: family/friends purchase a property together.

Each co-owner holds an undivided share (e.g., 50/50). Major decisions (sale, major works, long leases) require agreement on the basis set out in the deed, co-ownership or law.

Start with the amicable track

Valuation and negotiation

Before litigating, it is prudent to:

• obtain an independent valuation (capital and rental values);
• table a buy-out of the other shares or an amicable sale with a clear timetable and cost allocation.

Written terms

A short agreement should cover: price deadlines/conditions, handling of service charges/mortgages, discharge and how the net proceeds will be split.

If talks fail: partition through the courts

Failing agreement, a co-owner may ask the competent court (civil/real-estate) to order either:

• Partition in kind where objectively feasible (rare for a single apartment/house), or
• Judicial sale (licitation) by public auction, with the price distributed in line with the shareholdings after paying secured creditors (banks, liens) and costs.

The court may request an expert valuation, appoint a sale officer or direct the matter to the authorised auction platform. Co owners are notified and may bid.

Mortgages, liens and encumbrances

If the asset is encumbered (mortgage, attachment), the priority order applies: the sale price first satisfies the secured debts (principal/interest/costs); the net balance is then paid to the co owners. It is essential to:

• gather mortgage statements and no‑dues certificates;
• negotiate any release conditional on a minimum sale price.

Typical judicial-sale flow

1. Filing: partition/forced‑sale petition with title, valuation, correspondence and charge documents.
2. Case management: directions, expert report and sale terms (reserve price, adverts, auction date).
3. Auction: sale via the approved platform, with the bidder paying the price to court.
4. Distribution: secured creditors and costs first, then net proceeds paid pro‑rata to co‑owners.

Timelines depend on complexity (charges, contests). A well prepared file helps avoid adjournments.

Evidence and paperwork

• Title deed and plans;
• Co‑ownership agreement/building by‑laws (if any);
• Service‑charge and utility clearances;
• Mortgage status, bank correspondence;
• Current independent valuation.

Alternatives and safeguards

• Exit clauses in shareholders’/co‑ownership agreements; contractual rights of first refusal where appropriate;
• Mediation to avoid the discount sometimes seen at auction;
• Interim leasing to produce cash‑flow pending sale.

Costs and practicalities

For individuals, the UAE does not levy capital gains tax, but consider: transfer fees, auction/court charges, legal fees and any loan prepayment penalties. Build a realistic budget early.

A forced sale is a last resort when no consensual exit is possible. With a robust valuation, tight documentary preparation, a properly framed partition action and a well run auction process, co owners can achieve a market reflective price and fair allocation of proceeds. Experienced counsel will help shape the strategy (negotiation, filing, execution) and minimise deadlock risk.

Our lawyers, who are experts in inheritence law, are available to answer all your questions and provide advice. We offer face-to-face meetings or videoconferencing. You can make an appointment directly online at https://www.agn-avocats.fr/.

AGN AVOCATS – Inheritance Law
contact@agn-avocats.fr
09 72 34 24 72