As a rule, no. Every co-owner may demand dissolution at any time (section 37 of the Land Law). The court decides the method, division or sale, and takes the owners' wishes into account as far as possible.
Dissolution of co-ownership of real estate
Do you co-own an apartment, house or plot and cannot agree what to do with it? The law allows every co-owner to end the co-ownership. Here is how it works: by agreement or in court, division or sale, who pays for use until then, and what about tax.
In short: every co-owner may demand dissolution at any time. Property that can be divided is divided. Property that cannot, such as an apartment, is sold and the proceeds are divided according to the shares. A co-owner who uses the property alone owes the others a reasonable fee.
Who may demand dissolution of co-ownership?
Every co-owner, at any time, even if the others object. A co-ownership agreement that restricts dissolution does not block it forever: after three years the court may order dissolution if it is just.
In co-owned property, each owner's ownership extends to every part of the property, and no owner holds a specific part (section 27 of the Land Law). So you cannot simply "take my room".
What is "musha"? The word comes from Arabic and means joint ownership. In musha ownership each co-owner shares in every grain of the property according to his or her percentage, with no specific part of his or her own. This is the usual situation when several people inherit or buy an apartment or plot together, hence the need to dissolve the co-ownership.
Every co-owner may demand dissolution (section 37(a)). A clause in a co-ownership agreement restricting this right for more than three years does not prevent the court from ordering dissolution after three years (section 37(b)).
A co-owner may also sell his or her share without the others' consent (section 34), but in practice it is hard to sell part of an apartment at full price. It is usually better to sell the whole property and divide the proceeds.
How is it dissolved: by agreement or in court?
First try to agree. Without agreement, the court decides how: division in kind, sale, or in some cases registration of the building as a condominium with an apartment allotted to each owner.
Dissolution by agreement is the fastest and cheapest route. An agreement providing for division in kind of the land requires approval by the Superintendent of Land Registration that the division complies with planning law (section 38(a)).
Without agreement, the court decides according to the statutory order of priority:
- Division in kind: property that can be divided is divided. The court may order balancing payments between the owners and the registration of easements (section 39).
- Sale: property that cannot be divided, or whose division would cause a considerable loss, is sold and the proceeds are divided (section 40(a)). A single apartment is almost always such a case.
- Registration as a condominium: where the property is mainly a building fit to be registered as a condominium, the court may, after an opinion from the Superintendent, order its registration and allot apartments to the owners according to their shares (section 42).
- Intermediate solutions: some owners may remain co-owners among themselves, or take the property and pay the others what they would have received on a sale (section 41). The court takes the owners' wishes into account as far as possible (section 43).
Until the proceedings end, the court may give a temporary order on management and use (section 44). If the other side objects without a real argument, judgment may be requested already at the pre-trial stage. See judgment at the pre-trial stage.
How is an apartment sold in a dissolution?
The default is a sale like that of attached property in enforcement proceedings, by a receiver and to the highest bidder. The court may set another way it finds more efficient and just, and sometimes the parties agree on a mechanism that lets the co-owners buy.
This is what section 40(b) of the Land Law provides. Usually a receiver is appointed, sometimes the parties' lawyers jointly, and an appraiser sets the value. The receiver advertises the property, receives offers and holds a bidding round. The sale is subject to the approval of the court or the Enforcement Registrar.
A mechanism that keeps the property in the family: first a bidding round among outside buyers, then each co-owner may buy at the highest offer. A co-owner who wants to keep the property pays the real market price, and no side loses.
A case from the office: two sisters and a Tel Aviv apartment
Background: two sisters inherited from their mother, in equal shares, a rented apartment in Tel Aviv. The rights were leasehold rights in a cooperative society, and the building was inside an urban renewal (pinui-binui) compound. All attempts at a settlement failed.
Proceedings: we represented one of the sisters in a claim for dissolution of co-ownership in the Family Court. The parties reached agreements that were given the force of a judgment: the apartment is sold on the open market, both lawyers are appointed joint receivers, and the court appoints an appraiser. First there is a bidding round among outside buyers, and then each sister has 14 days to buy at the highest offer. Until vacation the tenants stay and the rent is divided between the sisters.
Result: one sister bought her sister's share through the receivers for 1,385,000 ₪ for the half, subject to the approval of the Enforcement Registrar and the society's consent fee.
The case is described without names because the proceedings were in the Family Court, which sits behind closed doors, and the judgment and the parties' details may not be published. More: dissolving co-ownership of an apartment inherited by siblings.
Another case: a cohabiting partner, a minor son and two half-sisters
Background: a cohabiting couple, both divorced and each with two children from a previous marriage, had a joint son who was a minor. After the man died, his daughters objected to his partner inheriting from him, arguing that she had not been his cohabiting partner at all. We represented her, and the daughters' claims were rejected. Under the inheritance order she inherited half, and the joint son and each of the two daughters inherited one sixth. Our client wished to buy the daughters' shares at a value set by an agreed appraiser.
The delay: the daughters asked to wait until they amended the inheritance order by a division agreement between them, citing betterment tax. The wait lasted about a year, and in hindsight the division agreement did not deal with betterment tax at all. After the amendment we offered to buy their shares at a stated price and asked for an answer within 7 days, or a proposal for bidding. When there was no answer, a claim for dissolution and the appointment of a receiver was filed in the Family Court.
A minor co-owner: to sue on behalf of the minor son as well, we applied for the court's approval, with an affidavit from the minor, who agreed. The Administrator General said it would not intervene, and the court allowed the claim to be filed on his behalf. In the application we undertook that if the apartment were sold to an outside buyer, a mechanism would protect the minor's money and a further application would be filed to approve the sale. Later a real estate appraiser was appointed and his fee was shared between the parties.
Result: the daughters firmly refused any compromise. In the end it was decided that the apartment would be sold in a bidding round held in court, and our client bought the daughters' two sixths in it. Because of the sale the daughters paid considerable betterment tax, tax that proper planning of the estate division might have saved. Today the joint son, who has since married, holds the apartment.
The case is described without names because the proceedings were in the Family Court, which sits behind closed doors, and the judgment and the parties' details may not be published.
One of the co-owners is a minor: what changes?
Proceedings concerning a minor's apartment require approval. The parent or guardian needs prior approval for steps such as transferring rights in an apartment, and in practice the claim itself and the sale are also brought for approval, to ensure the minor's money is protected.
The Legal Capacity and Guardianship Law provides that parents may not represent a minor in the transfer or division of an apartment without prior approval (section 20). So where one co-owner is a minor, the approval application, the Administrator General's position and the mechanism securing the minor's share of the proceeds are planned in advance. More on a minor's apartment on dira-law.
Who pays for use of the property until dissolution?
A co-owner who uses the property owes the other co-owners a reasonable fee, according to their shares. Each co-owner bears maintenance expenses according to his or her share and is entitled to a share of the income, such as rent.
- Reasonable fee: a co-owner who used the co-owned property owes the others a reasonable fee for the use, according to their shares (section 33). This is a common claim when one sibling lives in the inherited apartment.
- Expenses: each co-owner bears the expenses needed to maintain the property according to his or her share, and whoever paid more may recover from the others (section 32).
- Income: each co-owner is entitled to a share of the income, for example rent, according to his or her share (section 35).
A co-owner who lives in the property with the others' consent does not thereby become a protected tenant who can prevent a sale. The Supreme Court refused leave to appeal to a brother living in an inherited apartment, leaving in place a judgment ordering the apartment to be sold vacant (LCA 3047/14, 28.7.2014).
Where is a claim for dissolution filed?
A claim for dissolution of co-ownership of real estate is filed in the Magistrates' Court, regardless of the property's value. Where the co-owners are family members, for example spouses, parents and children or siblings, the claim is filed in the Family Court.
This follows section 51(a)(3) of the Courts Law for claims concerning division of real estate. A claim between family members arising from a family dispute is a family matter, and "family member" includes siblings (section 1(2) of the Family Court Law). Before filing, a preliminary letter is sent to the other side as the Civil Procedure Regulations require, and agreement is often reached at that stage.
What about tax?
A sale in a dissolution is a sale for betterment tax, and each co-owner is treated as selling his or her share. Division in kind of real estate among all its owners is exempt, except for the part for which a balancing payment was made.
Under section 5(a) of the Real Estate Taxation Law, a sale under a claim for division is a sale, and the person whose right was sold is treated as the seller. Each co-owner therefore checks separately whether he or she is entitled to an exemption, for example for a single apartment or an inherited apartment. Division in kind among all co-owners is exempt, and where a balancing payment was made, tax applies only to the part paid for (section 67).
With an inherited apartment, an agreement among the heirs dividing the estate is sometimes better, as it usually carries no tax. See Inherited apartment: inheritance order, registration, heirs and tax on dira-law.
How we work
- Review: land registry extract, inheritance order if any, co-ownership agreement, mortgages and attachments, and who uses the property.
- Preliminary letter: a letter to the co-owners with an orderly proposal, including a mechanism that lets each of them buy.
- Claim: without agreement, a claim for dissolution, including use fees and a request for a temporary order where needed.
- Implementation: receivership, appraisal, bidding, approval of the sale and division of the proceeds, up to registration of the buyer.
What to bring to the call: land registry extract, inheritance or probate order if the property was inherited, and correspondence with the co-owners. To arrange a call: 052-5927592.
Sources
- Land Law, 5729-1969: section 27, sections 32-35, section 37, section 38, section 39, section 40, sections 41-44.
- Courts Law [Consolidated Version], 5744-1984: section 51(a)(3).
- Family Court Law, 5755-1995: section 1(2).
- Real Estate Taxation (Betterment and Acquisition) Law, 5723-1963: section 5(a), section 67.
- Legal Capacity and Guardianship Law, 5722-1962: section 20.
- Supreme Court, LCA 3047/14 Anonymous v. Anonymous (28.7.2014).
Legislation checked on 28 October 2026. Sources are in Hebrew.
Questions and answers
Can I refuse dissolution of co-ownership?
My brother lives in the apartment we inherited. Am I owed a use fee?
A co-owner who used the co-owned property owes the others a reasonable fee according to their shares (section 33 of the Land Law). The amount is assessed by rental value and the circumstances, for example whether the co-owners agreed to the use.
I want to buy my co-owner's share. Is that possible?
Yes, by agreement, or within a dissolution sale where a mechanism lets each co-owner buy at the highest offer. This way the price is a real market price.
How long does dissolution take?
It depends mainly on agreement. Where agreement is reached, the process is much shorter. Where there is a dispute over the method, use fees or division of the proceeds, it takes longer.
Need a lawyer or a notary?
A short initial consultation call, to understand whether and how we can help.