Indivision of Property: Legal Implications of Unilateral Rental and Debt Liability Under French Civil Code
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Indivision, co-owners, yacht rental, debt responsibilities, Civil Code, undivided rights, indivisible property, co-ownership, French law
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Abstract
Unlock the complexities of indivisible property ownership and co-owner responsibilities. Discover how French law governs shared assets, such as a jointly owned yacht, and the implications of renting or incurring expenses without co-owner consent. Learn about the crucial two-thirds majority rule for managing indivisible assets and the proportional sharing of debts among co-owners. Understand your rights and obligations as a co-owner, including the distribution of income and expenses, and the potential consequences of non-compliance. Dive into the specifics of Articles 815-3, 815-8, and 815-17 of the French Civil Code to navigate co-ownership disputes and financial liabilities effectively.
Extract
[...] The indivision - The yacht Marc, Jonathan, and another friend bought a yacht. In the autumn of 2021, Jonathan rented the yacht to his cousin for the sum of 5,000 without informing his co-owners. In addition, the friends are experiencing financial difficulties and have not paid the sum of 3,000 ? related to the yacht's wintering at Ouest-Marine company. The question is, on the one hand, whether the yacht rental is legal and on the other hand, whether the Ouest-Marine company can turn against the 3 friends so that the sum of 3,000 ? [...]
[...] In this case, each of the co-owners holds a third of the boat, they must therefore each pay the amount of ?1,000. The creditors have a right of pursuit on the indivisible assets, so they can trigger the division in the name of their debtors (Article 815-17 paragraph 3 of the Civil Code). When the debt results from the conservation or management of the indivisible asset, the creditor will be paid by deduction from the active before the division (Article 815-17 paragraph 1 of the Civil Code). [...]
[...] On the yacht rental The indivisible property can be rented as soon as the co-owners agree to at least two-thirds of the indivisible rights (Article 815-3 4° of the Civil Code). In this case, the co-owners are three in number, and therefore each holds approximately 33% of the indivisible rights, in equal shares. Jonathan did not inform his co-owners of the yacht rental, who therefore could not give their consent. Therefore, Jonathan rented the boat with only one-third of the indivisible rights, thus not holding the two-thirds of the indivisible rights necessary to rent the boat legally. [...]
[...] for the boat rental. Unless an agreement is reached among the co-owners, the fruits and revenues of the undivided property must increase the undivision (article 815-10 paragraph 3 of the Civil Code). It is not mentioned that the amount was shared among the co-owners. It is therefore presumed that this was not the case. Therefore, the amount received for the boat rental should have been received by the co-owners in equal shares, and not only by Jonathan as was the case. [...]
