Chapter 16. Common Property.
Article 244. The concept and grounds for the emergence of common property.
1. Property owned by two or more persons belongs to them by the right of common ownership.
2. The property may be in common ownership with the definition of the share of each of the owners in the right of ownership (shared ownership) or without the definition of such shares (joint ownership).
3. Shared ownership of property is shared, unless the law provides for the formation of joint ownership of this property.
4. Common property arises when property is acquired by two or several persons, which cannot be divided without changing its purpose (indivisible things) or is not subject to division by virtue of the law.
Common ownership of the property being divided arises in cases provided for by law or by contract.
5. By agreement of the participants in joint ownership, and if no agreement is reached by a court decision, the share ownership of these persons may be established on the common property.
Article 245. Determination of shares in the right of shared ownership.
1. If the shares of the participants in common ownership cannot be determined on the basis of the law and are not established by agreement of all its participants, the shares shall be considered equal.
2. By agreement of all participants in share ownership, a procedure may be established for determining and changing their shares depending on the contribution of each of them to the formation and increment of the common property.
3. A participant in shared ownership who has implemented, at his own expense, in compliance with the established procedure for using common property, inseparable improvements to this property, has the right to a corresponding increase in his share in the right to common property.
Separable improvements of common property, unless otherwise provided by the agreement of the participants in the share ownership, shall become the property of the participant who produced them.
Article 246. Disposition of property in common ownership.
1. The disposition of property in common ownership shall be carried out by agreement of all its participants.
2. A participant in shared ownership has the right, at his own discretion, to sell, donate, bequeath, give his share in pledge or otherwise dispose of it in compliance with the rules provided for by Article 250 of this Code when it is paid for alienation.
Article 247. Possession and use of property in common ownership.
1. Ownership and use of shared property shall be by agreement of all its participants, and if there is no agreement, by the procedure established by the court.
2. A participant in shared ownership has the right to provide in his possession and use of a part of common property commensurate with his share, and if this is not possible, he has the right to demand from other participants owning and using property belonging to his share appropriate compensation.
Article 248. The fruits, products and income from the use of property in common ownership.
Fruits, products and income from the use of property in common ownership are transferred to the common property and are distributed among the participants of common ownership in proportion to their shares, unless otherwise provided by agreement between them.
Article 249. Expenditures for the maintenance of property in common ownership.
Each participant in shared ownership is obliged, in proportion to its share, to participate in the payment of taxes, fees and other payments on common property, as well as in the costs of its maintenance and preservation.
Article 250. Preemptive right of purchase.
1. When a share in the right of common ownership is sold to an outside person, the remaining participants in share ownership shall have the preemptive right to buy the sold share at the price for which it is sold, and on other equal conditions, except for the case of sale at public auction.
Public tenders for the sale of a share in the right of common ownership, in the absence of consent of all participants in common ownership, may be held in the cases provided for in part two of Article 255 of this Code, and in other cases provided by law.
2. The seller of the share is obliged to notify in writing the remaining participants in the share ownership of the intention to sell their share to a stranger, indicating the price and other conditions on which he sells it. If the remaining participants in common ownership refuse to purchase or do not acquire the sold share in the ownership of real estate within a month, and in the ownership of movable property within ten days from the date of notification, the seller has the right to sell his share to any person.
3. When selling a share in violation of the preemptive right to purchase, any other participant in share ownership has the right within three months to require the transfer of the rights and obligations of the buyer to it in court.
4. Concession of the preemptive right to purchase a share is not allowed.
5. The rules of this Article shall also apply when a share is alienated under an exchange agreement.
Article 251. The moment of transfer of a share in the right of common ownership to the acquirer under the contract.
The share in the right of common ownership is transferred to the acquirer under the contract from the moment of the conclusion of the contract, unless otherwise provided by agreement of the parties.
The moment of transfer of a share in the right of common ownership under an agreement subject to state registration shall be determined in accordance with paragraph 2 of Article 223 of this Code.
Article 252. The division of property in common ownership and the separation from it of a share.
1. Property in common ownership may be divided between its participants by agreement between them.
2. A participant in shared ownership shall have the right to demand the separation of his share from the common property.
3. If the participants of shared ownership fail to reach an agreement on the method and conditions for dividing common property or allocating a share of one of them, a participant in shared ownership has the right to demand in a court of law to separate its share of common property in kind.
If the separation of a share in kind is not allowed by law or is impossible without disproportionate damage to property in common ownership, the distinguished owner has the right to pay him the value of his share by other participants in shared ownership.
4. The disproportion of property allocated in kind to a participant in share ownership on the basis of this article, his share in the right of ownership is eliminated by paying the appropriate amount of money or other compensation.
Payment to the participant of shared ownership by the remaining owners of compensation instead of allocating its share in kind is allowed with its consent. In cases when the share of the owner is insignificant, it cannot be really allocated and he has no significant interest in using common property, the court may, in the absence of the consent of this owner, oblige other participants of common ownership to pay him compensation.
5. With the receipt of compensation in accordance with this article, the owner loses the right to a share in the common property.
Article 253. Possession, use and disposal of jointly owned property.
1. Participants in joint ownership, unless otherwise provided by agreement between them, jointly own and use common property.
2. The disposal of jointly-owned property is carried out with the consent of all the participants, which is assumed regardless of which of the participants makes the property disposal transaction.
3. Each of the participants in joint ownership shall have the right to conclude transactions for the disposal of common property, unless otherwise following from the agreement of all participants. A transaction made by one of the participants in joint ownership related to the disposal of common property may be invalidated at the request of the other participants on the grounds that the participant who made the transaction does not have the necessary authority only if it is proved that the other party knew or knew know about it.
4. The rules of this Article shall apply to the extent that, for certain types of joint ownership, this Code or other laws do not provide otherwise.
Article 254. The division of jointly owned property and the separation of a share from it.
1. The division of common property between participants of joint ownership, as well as the separation of the share of one of them can be carried out after a preliminary determination of the share of each of the participants in the right to common property.
2. When dividing common property and allocating a share from it, unless otherwise provided by law or by agreement of the participants, their shares shall be recognized as equal.
3. The grounds and procedure for dividing common property and separating out a share from it are determined by the rules of Article 252 of this Code insofar as nothing otherwise is established for certain types of joint ownership by this Code and other laws and does not follow from the essence of the relations of the participants in joint ownership.
Article 255. Claim on share in common property.
A lender of a participant in common or joint ownership, if the owner of other property is insufficient, has the right to file a claim for separation of the debtor’s share in the common property for recourse to it.
If in such cases it is not possible to allocate a share in kind or the remaining participants of shared or joint ownership object, the creditor is entitled to demand that the debtor sells his share to the remaining participants in common ownership at a price commensurate with the market value of this share, with the proceeds from the sale of the debt repaying.
In the event of the refusal of the remaining participants in common property to acquire the debtor’s share, the creditor is entitled to demand that the court seize the debtor’s share in the common property right by selling this share at public auction.
Article 256. The common property of spouses.
1. The property acquired by the spouses during the marriage is their joint property, unless a different regime of this property is established by an agreement between them.
2. The property belonging to each of the spouses before marriage, as well as received by one of the spouses during the marriage as a gift or by way of inheritance, is his property.
Personal belongings (clothing, shoes, etc.), with the exception of jewels and other luxury goods, although acquired during the marriage at the expense of the common means of the spouses, are recognized as the property of the spouse who used them.
The property of each spouse can be recognized as their joint property if it is established that during the marriage, the common property of the spouses or the personal property of the other spouse made investments that significantly increase the value of this property (major repairs, renovations, re-equipment, etc. ). This rule does not apply if the contract between the spouses provides otherwise.
3. According to the obligations of one of the spouses, a penalty may be levied only on the property in his ownership, as well as on his share in the common property of the spouses, which would be due to him when dividing this property.
4. The rules for determining the shares of spouses in common property when it is divided and the procedure for such a section shall be established by the legislation on marriage and the family.
Article 257. Property of a Peasant (Farm) Economy
1. The property of a peasant (farm) economy belongs to its members by the right of joint ownership, unless otherwise established by a law or by an agreement between them.
2. The members of a peasant (farm) farm are jointly owned or provided to this farm or acquired land, household and other buildings, land-improvement and other facilities, productive and working livestock, poultry, agricultural and other machinery and equipment, vehicles, inventory and other property acquired for the economy on the general means of its members.
3. Fruits, products and income derived from the activities of a peasant (farm) economy are common property of members of a peasant (farm) economy and are used by agreement between them.
Article 258. The division of property of a peasant (farm) economy.
1. Upon termination of a peasant (farm) economy in connection with the withdrawal from it of all its members or for other reasons, the common property shall be divided according to the rules provided for in Articles 252 and 254 of this Code.
Land in such cases is divided according to the rules established by this Code and land legislation.
2. The land plot and the means of production belonging to the peasant (farm) economy, upon the withdrawal of one of its members from the farm, shall not be divided. Released from the farm has the right to receive monetary compensation commensurate with its share in the total ownership of this property.
3. In the cases provided for by this article, the shares of members of a peasant (farm) farm shall be deemed equal in the right of joint ownership of the property of the farm, unless otherwise specified by an agreement between them.
Article 259. Property of an economic partnership or a peasant (farm) economy.
1. Members of a peasant (farm) enterprise may establish a business partnership or production cooperative on the basis of the property of the farm. Such a business partnership or cooperative as a legal entity has the right of ownership of property transferred to it in the form of contributions and other contributions by members of the farm, as well as property obtained as a result of its activities and acquired on other grounds permitted by law.
2. The size of the contributions of the participants of the partnership or members of the cooperative created on the basis of the property of the peasant (farm) enterprise shall be determined on the basis of their shares in the right of common ownership of the property of the farm, determined in accordance with paragraph 3 of Article 258 of this Code.
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