Agreement to divide the possession between joint owners (partitioning agreement)

A partition agreement is an agreement regarding the use and management of a piece of land among its co-owners. Additionally, the agreement may also cover the management of a building located on the land.

In legal terminology, the piece of land is generally referred to as “real estate” or “property”. In everyday language, however, “real estate” may refer to a fixed building and/or the associated land.

Within a partition agreement, detailed regulations can be established for the use of areas, common areas, separate areas, as well as matters such as access paths and the sharing of costs related to the maintenance of the land.

Furthermore, in the case of a developing piece of land, it may sometimes be necessary for the landowners to agree on future construction and contributions to obtaining building permits.

Once a partition agreement is documented, it also binds any new owner of the land or a portion of it. An unrecorded partition agreement does not bind a new owner unless the new owner becomes aware of the content of the partition agreement before the transfer.

Important considerations when creating a partition agreement include, among others :

  • Providing a clarifying map attachment if precise agreements on the management of different areas are desired.
  • The parties’ stance on construction and permits.
  • Rights of use and maintenance responsibilities, as well as the procedure in case of neglecting these responsibilities.
  • Whether the partition agreement is valid indefinitely or for a specified period.
  • A clause regarding dispute resolution among the parties.

A partition agreement is recorded as a special right related to the piece of land in the land register maintained by the National Land Survey of Finland. Once a partition agreement is recorded, mortgages can only be imposed on the designated shares of the co-owners, and mortgages cannot be established for the entire piece of land.

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