Foreclosure on a Share in the Ownership of Real Estate if the Creditor and Co-Owner Coincide in one Person

Abstract

This study is devoted to the specifics of foreclosure on a share in the ownership of real estate in situations where the creditor is simultaneously a co-owner of a share in the right to this property, and accordingly has a preferential right to purchase the debtor's share. Some issues still remain unresolved at the legislative level, which causes difficulties in considering cases of this category. In judicial practice, there is no unified approach to the methodology for determining the market value of the share in the ownership right to which foreclosure is taking place. It is unclear how the plaintiff's demands for foreclosure on the debtor's share should sound with recognition of ownership of the share for the recoverer in terms of payment of funds by the plaintiff to the defendant. The authors propose to change the procedure for foreclosing on a share in the ownership of a real estate object if the co-owner and the recoverer coincide in one person: foreclosure will be carried out through bidding, after determining the winner, co-owners will be offered to purchase a share at a price determined as a result of bidding. This procedure will allow you to determine the actual market value of the share for which foreclosure is taking place, while respecting the pre-emptive right of purchase.