---
title: "Co-Ownership Share Valuation in Residential Property"
url: "https://legal.ge/en/service/valuation-advisory-services-en/co-ownership-share-valuation-in-residential-property-en"
field: "Valuation & Advisory Services"
description: "Co-ownership share valuation: equal shares, division in kind, auction and compensation rules. Legal.ge."
reviewed: "2026-05-06"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Co-Ownership Share Valuation in Residential Property

> Source: legal.ge, https://legal.ge/en/service/valuation-advisory-services-en/co-ownership-share-valuation-in-residential-property-en

Valuing a co-ownership share in residential property is often the central question in the division of family relationships, inheritance or a joint investment. The Georgian Civil Code regulates common ownership within a clear framework: common ownership — both joint and shared — arises by force of law or on the basis of a transaction. Each co-owner may present claims to third parties in respect of property held in common ownership, although the right to reclaim a thing belongs to each co-owner only for the benefit of all co-owners. The correct determination of the share's value decides what each participant receives on division, how fair the compensation is and how the proceeds of a sale are distributed.

## Equality of Shares and the Rules of Disposal

Unless specially otherwise provided, each participant owns an equal share — the general rule from which the starting basis of valuation follows: with two participants, each share is half the value of the object. Each participant may dispose of their own share, while the common object may be disposed of only jointly. On the sale of a share, the remaining participants' right of pre-emptive purchase may be determined by agreement of the parties, unless Georgian legislation directly provides otherwise. The costs of maintaining and preserving an item held in common ownership are also borne by the co-owners equally, unless law or contract provides otherwise, and the pledging or other encumbering of the item is possible only by agreement of the co-owners.

## Division in Kind and the Drawing of Lots

The joint right is terminated upon division in kind, if the common object can be divided into homogeneous parts without reducing its value. For residential property, the building must objectively lend itself to division into parts similar in area and value; where one part exceeds a co-owner's share, the balance is restored through compensation. The distribution of equal shares among the participants takes place by the drawing of lots — a rule giving each participant an equal chance and excluding preference at allocation. Whether division in kind is possible is itself a question of valuation: it is precisely the risk of a reduction in value that decides whether such a division is admissible.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/valuation-advisory-services-en/co-ownership-share-valuation-in-residential-property-en

### What is the size of co-owners' shares?

Unless otherwise provided, each participant owns an equal share; different shares may be determined by agreement.

### Is division in kind possible?

Yes, if the object divides into homogeneous parts without a reduction in value; equal shares are distributed among the participants by the drawing of lots.

### What happens when division in kind is impossible?

The object is sold and the proceeds are distributed by shares; for a land plot the auction rules apply, and where alienation to a third party is prohibited — an auction among the participants.

### How does compensation work?

Where one party receives items exceeding that party's share in value, the other party receives corresponding monetary or other compensation.