Inheritance Law · Partition Auction
Partition Auction – property in a community of heirs
When a community of heirs cannot agree on an inherited property, any co-heir can apply for a partition auction. It converts the indivisible property into a divisible sum of money – if necessary against the will of the others.
The partition auction is a powerful tool but carries risks: it often sells below market value. I check whether it is the right path – or whether a better solution is possible.
Key facts
- Any co-heir can apply for the partition auction (§ 180 ZVG).
- It dissolves the community of heirs in the property.
- The property becomes a divisible auction proceed.
- Risk: the sale is often below market value.
When does a partition auction make sense?
No agreement possible
A co-heir blocks a sale or buyout. The partition auction can force the division anyway.
Leverage in negotiations
Just filing the application often increases willingness to agree. An out-of-court solution is frequently found beforehand.
Last resort
Because the proceeds are often below market value, the auction is usually the worse economic option – but sometimes the only one.
Consider better alternatives
- Consensual sale on the market – usually a significantly higher price.
- Buyout by one co-heir against a compensation payment.
- Sale of your own share to leave the community.
- Out-of-court division with legal mediation.
Risks of a partition auction
- The auction proceeds are often below market value.
- The procedure takes time and incurs costs.
- Proceeds are only distributed once the heirs agree on the split.
- Even the applicant bears the risk of a low bid.
Frequently asked questions about the partition auction
What is a partition auction?
A court procedure that auctions an indivisible property from the estate to convert it into a divisible sum of money. Any co-heir can apply for it under § 180 ZVG to dissolve the community of heirs.
Can a single co-heir force the auction?
Yes. Any co-heir can apply for the partition auction – the consent of the others is not required. This makes it an effective lever when agreement is blocked.
Do I get the full value at the auction?
Often not. Auction proceeds are frequently below market value because the pool of bidders is limited. A free sale on the market usually yields more – if the heirs agree.
What happens to the proceeds?
The proceeds do not flow automatically to the heirs. Only once the community agrees on a distribution plan is payment made. Otherwise the amount is deposited with the court.
Dispute over an inherited property?
I check whether a partition auction makes sense – and secure the economically best solution for you.