{"id":109081,"date":"2026-08-23T12:03:00","date_gmt":"2026-08-23T09:03:00","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=109081"},"modified":"2026-08-23T12:02:10","modified_gmt":"2026-08-23T09:02:10","slug":"%d9%82%d8%b1%d8%a7%d8%a1%d8%a9-%d9%82%d8%a7%d9%86%d9%88%d9%86%d9%8a%d8%a9-%d9%81%d9%8a-%d8%aa%d8%b5%d9%81%d9%8a%d8%a9-%d8%b9%d9%82%d8%a7%d8%b1%d8%a7%d8%aa-%d8%a7%d9%84%d9%88%d8%b1%d8%ab%d8%a9-%d9%88","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/109081\/","title":{"rendered":"A Legal Analysis of the Liquidation of Real Estate Belonging to Heirs and Partners"},"content":{"rendered":"

One of the most common problems with jointly owned real estate is that the property remains unresolved for years among the heirs or co-owners; some want to keep it, some want to invest in it, and others want to sell it and receive their share. Over time, these conflicting interests may turn into Legal Dispute<\/a>...and the phrase \u00abpublic auction\u00bb becomes the outcome that everyone fears.
But is it enough for an heir or a co-owner to request that the entire property be sold at auction?
The answer is even more precise than that.<\/p>\n\n\n\n

In principle, a partner is not compelled to remain in joint ownership and may request partition unless there is an agreement or provision preventing it, or unless the nature of the allocation of the property requires that it remain in joint ownership. Conversely, a partner\u2019s right to withdraw does not necessarily mean that real property owned by a number of heirs or partners must be sold in its entirety simply because one of them wishes to receive the value of his or her share.
This is where the importance of Article 628 of the Civil Transactions Law becomes apparent, as it strikes a delicate balance between the right of a partner who wishes to withdraw from joint ownership and the interest of the remaining partners in preserving the jointly owned property.
If the property can be physically divided without disrupting its use or causing a significant reduction in its value, the general rule is to divide it among the co-owners. This means that the issue goes beyond whether the land or building can be physically subdivided; it extends to the impact of such subdivision on the property\u2019s utility and economic value. The property may be technically divisible, but dividing it could, in practice, diminish its value, hinder its development potential, or reduce its utility.<\/p>\n\n\n\n

However, if a specific division would prevent the use of the property or cause a significant reduction in its value, the general rule is that it should be sold at auction, unless the partners agree otherwise. However, the law does not make the sale of the entire asset an inevitable outcome in all cases; rather, it imposes an important restriction that every heir and partner should be aware of. If the party requesting division is able to sell their share separately for no less than its value if the property were sold as a whole, the remaining partners are not obligated to sell their shares along with them. However, if selling his share separately would result in a reduction in its value, the remaining partners may prevent the sale of the property at auction if they pay the party requesting division the amount by which the value of his share was reduced due to the separate sale.
This is an extremely important legal solution because it offers a third option between forcing a partner to retain ownership of a property they do not want and forcing all partners to sell the entire real estate asset.
Let\u2019s imagine a property worth 10 million riyals, of which one of the heirs owns one-tenth. If the value of his share, relative to the total value of the property, is one million riyals, and he is able to sell his undivided share for that amount, then his request to withdraw from the co-ownership does not oblige the remaining heirs to sell the entire property. However, if his share cannot be sold separately for less than that amount, the law allows the remaining co-owners to address this shortfall in accordance with the regulations it has established, thereby potentially preventing the property from going to auction.
Consequently, the approach to liquidating the real estate of heirs and partners changes.<\/p>\n\n\n\n

The problem is not that one of the heirs wants to claim their right; this is a right that should not be thwarted by the preservation of the property. Furthermore, the other heirs\u2019 desire to hold onto the property may be justified; it could be an important family heirloom, a successful investment, or a prime property expected to appreciate in value. The real problem begins when everyone reaches a point of conflict before exploring the available legal and economic alternatives.
Protecting a property from being sold at auction does not begin when the auction is announced, but long before that: Property Appraisal<\/strong><\/a> Conduct a professional appraisal; examine the possibility of dividing the property without compromising its utility or value; determine the economic value of the co-ownership shares; and explore the possibility of purchasing the share of the party wishing to exit, or reaching a settlement that grants that party their rights without having to give up the entire property.<\/p>\n\n\n\n

This becomes even more important when the estate consists of more than one piece of real property or various types of assets. In such cases, it may be possible\u2014by agreement among the heirs and after taking into account the rights pertaining to the estate\u2014to distribute the assets among them in a manner whereby certain properties are allocated to some heirs, while others are compensated with other assets or sums of money, with any differences in shares being addressed. This may better preserve the value of the estate than selling its assets one by one.
For this reason, the liquidation of jointly held real estate assets should not be understood as synonymous with a sale.<\/p>\n\n\n\n

A successful liquidation is not necessarily one that ends with an auction, but rather one in which every entitled party receives what is due to them, while preserving\u2014as much as possible\u2014the economic value of the jointly owned property. In some cases, an auction may be the inevitable legal solution, particularly when division is not possible and alternatives that preserve the rights of the parties cannot be found. However, it should not be the first idea proposed when heirs or partners disagree, nor should it be the outcome they reach simply because they have delayed addressing the issue of jointly owned property.
The estate that the decedent built up over decades may include real estate with high investment value, and the jointly owned property may be the result of a long-term investment among partners; therefore, it is unwise for a dispute over how one of them will exit the partnership to lead to the sale of the entire asset before exploring the alternatives provided by the law.
Therefore, the most important question before the property goes up for auction is not: How do we prevent one of the co-owners from selling?<\/p>\n\n\n\n

Rather: How can those who wish to sell obtain their due, while the others\u2014whenever possible\u2014preserve the property and its value? Here, the liquidation of real estate held by heirs and partners shifts from a dispute over the sale to the informed legal management of shared property and wealth.
@Dr_alkharji\u00a0<\/p>\n\n\n\n

<\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>One of the most common problems with jointly owned real estate is that the property remains unresolved for years among heirs or co-owners; some want to keep it, some want to invest in it, and others want to sell it and receive their share. Over time, these conflicting interests may escalate into a legal dispute, and \u00abpublic auction\u00bb becomes the outcome that everyone fears. But is it enough to simply request \u2026 Read 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