Updated: August 2026
Summary
- Inherited joint ownership places all heirs on an equal footing: each holds a share of the property, but no one owns a specific physical part of it.
- In principle, selling a jointly owned property requires the unanimous agreement of all co-owners. If no agreement can be reached, co-owners holding at least two-thirds of the ownership rights may, under certain conditions, seek court authorisation to sell.
- Licitation is the voluntary or court-ordered auction of a jointly owned property that cannot be physically divided, allowing the sale proceeds to be distributed among the heirs.
- It is mainly used when there is a persistent disagreement between heirs or when a minority co-owner blocks any decision to sell.
- The procedure may be carried out amicably before a notary or, in the event of a complete deadlock, through the court, with significantly higher costs and longer timescales in the latter case.
- Before resorting to licitation, a conventional private sale or a buyout of shares between heirs remains a faster and often less expensive solution.
A death in the family almost always raises a very practical question: what should be done with the house or apartment left by the deceased?
Until the estate has been settled, the property belongs jointly to all the heirs. In other words, they collectively own it without any individual heir being able to claim a particular room, floor, or other physical part of the property as their own.
This situation, which is intended to be temporary, can become problematic when the heirs cannot agree on what to do with the property. Some may want to sell quickly, while others wish to keep it. In some cases, a single minority co-owner can block any decision for months or even years.
This is where licitation comes into play.
Relatively unknown to the general public, this procedure involves the auction of a jointly owned property and can provide a way out when discussions between heirs have reached a deadlock and the property cannot be physically divided—for example, a house cannot simply be split into three separate parts.
The property is therefore sold so that each heir can receive their share in cash.
Licitation can take place amicably before a notary or through a court-ordered procedure, with very different implications in terms of cost, timeframe, and the level of control retained by the heirs.
In this article, we explain what inherited joint ownership is and why it can sometimes prevent a property from being sold, what licitation actually involves, when it may be appropriate, how the procedure works in practice, the costs and timescales involved, the alternatives available, and finally how the taxation of an inheritance distribution is handled.
What Is Inherited Joint Ownership and Why Can It Prevent a Sale?
When a person dies leaving several heirs, the assets they owned—including real estate—automatically become jointly owned by the heirs until the estate is divided.
Each heir therefore holds a share of the property, generally expressed as a fraction—for example, one-third or one-quarter—according to their inheritance rights.
In practical terms, no one owns "the living room" or "the garden": all the heirs jointly own the entire property in proportion to their respective shares.
This arrangement is intended to be temporary while the estate is being settled and works well when the heirs agree.
However, it can quickly become a source of conflict when their interests differ, which is relatively common. One heir may need cash quickly, another may have an emotional attachment to the family home, while a third may wish to retain it as a rental investment.
These different objectives explain why many jointly inherited properties remain unsold for long periods after a death.
The Unanimity Rule Between Heirs
The general principle governing joint ownership is that the most important decisions—including the sale of the property—require unanimous agreement.
In practical terms, no individual co-owner can decide alone to sell the jointly owned property. All heirs, regardless of the size of their share, must agree to sign the deed of sale.
An heir holding only 5% of the ownership rights could therefore, in principle, oppose a sale supported by the holders of the remaining 95%.
This rule protects each co-owner against having a decision imposed on them, but it also explains why so many estates become deadlocked when family relations deteriorate.
In practice, a single heir refusing to sign—or simply failing to respond to the notary—can make a conventional private sale impossible.
Court Authorisation with a Two-Thirds Majority
To address this risk of deadlock, French law provides a mechanism allowing co-owners holding at least two-thirds of the joint ownership rights, under certain conditions, to seek court authorisation to sell the property without the agreement of the remaining minority.
This procedure involves formally notifying the minority co-owners of the intention to sell. If they fail to respond or continue to object, the matter may then be referred to the relevant court to obtain authorisation for the sale.
This two-thirds majority procedure can, in some cases, avoid having to resort directly to a more cumbersome court-ordered licitation.
However, it remains a regulated legal procedure requiring the assistance of a notary or lawyer and may not be applicable where the disagreement is more profound or where the ownership shares do not reach the required two-thirds threshold.
What Is Licitation?
Licitation refers to the auction of a property owned jointly by several people, carried out with the aim of distributing the proceeds among the co-owners when the property itself cannot be physically divided.
The term may sound technical, but the principle is straightforward: since a house or apartment cannot be physically divided between several heirs without destroying its value or usefulness, the property is sold and the proceeds are then distributed among the co-owners according to their respective ownership rights.
Licitation can apply to a property held jointly following an inheritance, but also more broadly to any jointly owned property, including property owned by former spouses following a divorce or by individuals who voluntarily purchased a property together.
In the context of an inheritance, it is generally used when an amicable division of the estate has proved impossible and selling the property becomes the only practical way for each heir to receive their share.
Amicable vs. Court-Ordered Licitation
There are two main forms of licitation, involving different levels of conflict and different procedural requirements.
Amicable licitation takes place when the heirs agree to sell the property at auction rather than through a conventional private sale—for example, because they want the price to be determined transparently and in a way that cannot easily be disputed.
The auction is then organised before a notary and operates in a similar way to a consensual notarial property auction.
Court-ordered licitation, by contrast, is ordered by the court when the heirs cannot agree either on the sale itself or on how it should be carried out.
The judge then orders the forced sale of the property, establishes the procedural framework, and, where appropriate, appoints the professionals responsible for organising the auction, such as a notary or judicial officer.
This more complex and time-consuming route is generally reserved for genuine deadlock situations where all attempts to reach an amicable solution have failed.
When Should Licitation Be Used?
Licitation is not the default solution for selling jointly owned property.
It is generally considered a last resort, when conventional methods of reaching an amicable sale have failed or are clearly not possible.
Two situations most commonly lead to its use.
Disagreement Between Heirs Over Whether to Sell
The most common situation occurs when the heirs cannot agree on whether the property should be sold.
Some may want to sell quickly in order to receive their share of the inheritance, while others prefer to keep the property, either for emotional reasons—such as preserving the family home—or for financial reasons, such as retaining a profitable rental investment.
When this disagreement persists despite attempts at family or notarial mediation and none of the parties can agree on a buyout of the others' shares, licitation may provide a way to resolve the situation through the actual sale of the property.
A Minority Co-Owner Blocking the Sale
The second common situation involves a minority co-owner who systematically refuses to sign the documents required for the sale without offering a realistic alternative, such as buying out the other heirs.
Even if the other heirs hold the majority of the ownership rights and wish to proceed, the unanimity rule may prevent them from selling without that person's agreement.
If the two-thirds majority procedure is unsuccessful or cannot be used, court-ordered licitation can overcome this deadlock by allowing the court to decide that the property should be sold regardless of the position taken by the dissenting co-owner.
In both cases, professional advice is strongly recommended before beginning a licitation procedure, given the potential financial and family consequences.
A local real estate advisor can also assist the heirs from the earliest discussions by providing an objective assessment of the property's value and helping facilitate discussions.
Obtaining a free online property valuation can often help reduce tensions by giving all co-owners a neutral, figures-based starting point for their discussions.
How the Licitation Procedure Works
In practice, the licitation process differs depending on whether it is carried out amicably or through the courts.
The Amicable Route Before a Notary
When the heirs, even if they disagree on the price or specific terms, accept the principle of an auction organised by a notary, the procedure remains relatively flexible.
The notary handling the estate organises the sale and generally sets a starting price—often below the estimated market value of the property in order to encourage bidding.
Potential bidders are then invited to participate. They may be third parties outside the family or the heirs themselves, who are entitled to bid for the jointly owned property.
This approach has the advantage of being faster and less expensive than court proceedings while ensuring that the sale price is determined transparently, thereby reducing the risk of subsequent disputes over the amount obtained.
However, it still requires a minimum level of cooperation between the co-owners, at least regarding the decision to use this type of sale.
The Court-Ordered Route
When there is a complete deadlock, one or more heirs may apply to the court for a forced licitation of the property.
The judge examines the situation, determines whether dividing the property physically is impossible or inappropriate, and may then order the property to be sold at auction.
The court appoints the professional responsible for organising the sale, generally a notary, and establishes the conditions of the auction, including the starting price, date, advertising arrangements, and requirements for bidders.
Court proceedings take longer because of the time required for hearings and any potential appeals. They are also more expensive, as court costs and legal fees are added to the usual notarial expenses.
Nevertheless, this may be the only available solution when communication between the heirs has completely broken down and no other option—including the two-thirds majority procedure mentioned above—can resolve the situation.
In both cases, once the sale has been completed, whether the buyer is a third party or one of the heirs, the proceeds are paid into an account managed by the notary.
They are then distributed among the co-owners according to their respective shares, after deducting the costs of the procedure and, where applicable, any debts owed by the estate.
Costs and Timescales of Licitation
Whatever form it takes, licitation involves specific costs in addition to the usual expenses associated with a property sale.
For an amicable licitation, these include the notary's fees for organising the auction, generally calculated according to the sale price, as well as the advertising costs required to attract bidders.
Overall, these costs remain broadly comparable to those of a conventional notarial sale, with additional expenses related to the organisation of the auction.
In a court-ordered licitation, the costs are higher.
In addition to notarial fees, there are court costs, lawyers' fees—legal representation generally being required before the relevant court—and potentially the cost of expert assessments ordered by the judge to value the property or determine whether it can be physically divided.
In terms of timescales, a well-prepared amicable licitation can be completed within a few months, broadly comparable to a slightly more complex conventional property transaction.
A court-ordered licitation, on the other hand, generally takes considerably longer and can often exceed one year, due to court proceedings, caseloads, and any appeals brought by one of the parties.
These additional costs and delays explain why, in most situations, alternatives should be seriously explored before proceeding with licitation, particularly court-ordered licitation, which should generally be considered only as a last resort.
Alternatives to Licitation
Before considering licitation, several more flexible solutions should be carefully explored, particularly where disagreements between the heirs remain manageable.
A Conventional Private Sale to a Third Party
When all heirs agree in principle to sell, the simplest solution remains a conventional private sale to a third-party buyer, just like any other property transaction.
This requires unanimous agreement among the co-owners regarding the sale, price, and terms of the transaction.
However, it has the advantage of generally being faster and less expensive while allowing the property to be properly marketed to a wide range of potential buyers.
Obtaining an independent valuation and then entrusting the property to a professional for marketing to serious buyers can often help the heirs reach an agreement more quickly than a licitation procedure.
You can also browse Capifrance property listings to compare the property with the local market.
Buying Out the Other Heirs' Shares
Another common alternative applies when one heir wishes to keep the property—for example, the family home.
That heir can offer to buy the shares held by the other co-owners by paying them a balancing payment known in French as a soulte, calculated according to the property's value and each person's ownership share.
This avoids selling the property to a third party and allows the estate to be settled without going through a more cumbersome licitation procedure.
However, the heir wishing to take over the property must have sufficient financial resources, potentially with the help of bank financing, and the other co-owners must agree on the property's valuation.
Once again, an objective and up-to-date valuation carried out by an independent professional can provide a reliable basis for discussions and reduce the risk of subsequent disputes over the amount of the balancing payment.
It is also important to remember that inherited joint ownership can become even more complex when a surviving spouse is involved, as the surviving spouse's inheritance rights may affect the distribution of ownership shares and decisions concerning the property.
Likewise, where an estate has an international dimension—for example, because the deceased lived abroad or owned property in several countries—joint ownership and the sale of the property may be subject to specific rules.
Finally, some estates involve a division of ownership rights, for example where the deceased had previously transferred the bare ownership of a property while retaining usufruct. In such cases, understanding usufruct and bare ownership is essential before considering any sale, whether through licitation or otherwise.
Taxation of the Distribution and Licitation
Beyond the procedural aspects, selling a jointly owned property as part of an inheritance also raises tax issues that should be anticipated.
The distribution of an estate, whether carried out amicably or following licitation, generally gives rise to a partition tax (droit de partage), calculated on the net value of the assets being divided.
This tax applies when the distribution brings joint ownership to an end, including where the property has been sold through licitation and the proceeds are subsequently distributed among the heirs.
The applicable rate is set by the French tax authorities and applies to the value of the jointly owned assets after deducting any estate debts. The exact rate applicable at the time of the transaction should therefore be confirmed with the notary handling the estate, as it may change over time.
Regarding real estate capital gains tax, the sale of inherited property may be taxable unless an exemption applies.
The capital gain is generally calculated as the difference between the sale price and the value of the property established at the date of death, with this latter amount serving as the acquisition value for each heir's capital gains calculation.
An accurate valuation of the property at the date of death—carried out retrospectively by a professional if necessary—is therefore important to secure this calculation and reduce the risk of a subsequent tax reassessment.
Finally, the costs directly associated with the licitation procedure itself, including specific notarial costs and, where applicable, court expenses, are generally deducted from the sale proceeds before the remaining amount is distributed among the heirs.
This should be taken into account when comparing licitation with amicable alternatives, as the combination of partition tax, procedural expenses, and lawyers' fees in a court-ordered licitation can significantly reduce the net amount ultimately received by each co-owner compared with a conventional private sale.
Work with a Capifrance Real Estate Advisor
Selling a jointly owned property as part of an inheritance, particularly when tensions exist between heirs, is a delicate process that benefits from the support of an experienced professional.
A local Capifrance real estate advisor can help establish an objective value for the property through a reliable valuation, prepare a solid sales file capable of gaining the agreement of all co-owners, and facilitate communication between heirs by providing a neutral and professional perspective on the local market.
This support can often help avoid a lengthy and costly court-ordered licitation.
Conclusion
- Inherited joint ownership places the heirs in a situation of joint ownership of the property, with a unanimity rule that can prevent a sale in the event of disagreement.
- Court authorisation based on a two-thirds majority of the joint ownership rights may sometimes overcome a minority deadlock without immediately resorting to licitation.
- Licitation—the amicable or court-ordered auction of a jointly owned property—provides a way to resolve the sale when discussions between the heirs have failed.
- An amicable procedure before a notary is generally faster and less expensive than court proceedings, which are reserved for the most serious deadlocks.
- A buyout of shares between heirs or a conventional private sale to a third party remains, in most cases, simpler and less expensive than licitation.
- Partition tax and any real estate capital gains tax are added to the costs of the procedure and should be anticipated from the outset.
Given the complexity of these situations, it is advisable to seek professional support from the earliest discussions between heirs. This can help you structure the property sale calmly and prevent the estate from becoming tied up in a prolonged dispute.
FAQ
What Is Licitation in French Inheritance Law ?
Licitation is the amicable or court-ordered auction of a property jointly owned by several heirs, organised when the property cannot be physically divided.
The proceeds from the sale are then distributed among the co-owners according to their respective shares in the estate.
Can One Heir Oppose the Sale of a Jointly Owned Property ?
Yes. Under the unanimity rule, each co-owner can, in principle, oppose the sale of a jointly owned property, regardless of the size of their share.
This type of deadlock may lead the other heirs to seek court authorisation based on a two-thirds majority or, where necessary, initiate a licitation procedure.
What Is the Difference Between Amicable and Court-Ordered Licitation?
Amicable licitation is organised by a notary with the agreement of all heirs on the principle of selling the property at auction.
Court-ordered licitation is ordered by the court when there is a complete disagreement between the co-owners.
The amicable procedure is generally faster and less expensive than the court-ordered route.
Can One Heir Buy Out the Others Instead of Selling the Property?
Yes. This is a common solution.
An heir who wishes to keep the property can buy out the shares held by the other co-owners by paying them a balancing payment (soulte), calculated according to the value of the property and each heir's ownership share.
This avoids selling the property to a third party and allows the estate to be settled without resorting to licitation.
How Long Does a Licitation Procedure Take?
A well-prepared amicable licitation, with the agreement of the heirs, can be completed within a few months, broadly in line with the timeframe of a conventional property sale.
A court-ordered licitation often takes considerably longer because of court proceedings and may exceed one year, depending on the circumstances.
Can an Heir Bid for the Property During a Licitation?
Yes. Co-owning heirs are entitled to participate in the auction and bid for the property in the same way as third parties outside the family.
This is relatively common when one heir wishes to keep the property but the others have refused an amicable buyout of their shares.
What Costs Should Be Expected in a Licitation?
Licitation involves notarial costs related to organising the auction.
In court proceedings, additional expenses include court costs and lawyers' fees. Partition tax also applies to the value of the assets being divided.
These costs reduce the net amount ultimately received by each heir compared with a conventional private sale.
Is Licitation the Only Solution When Heirs Disagree?
No. Licitation should be considered a last resort.
Before resorting to it, the heirs can explore family mediation, court authorisation based on a two-thirds majority to overcome opposition from a minority co-owner, or a buyout of shares between heirs.
An objective professional valuation of the property can also make it easier to reach an amicable agreement and avoid a lengthy and costly procedure.
Author :
Frédéric Rémy – Director of Commercial Performance
A real estate professional for several years within the Capifrance network, I would like to share with you some essential advice to help you succeed in your real estate project with the support of our advisors.
