Half a House? Understanding Undivided Shares in Property

Co-Ownership: Shared Rights, Shared Limits

In Namibian law, co-ownership means two or more people own the same property together — each with a share in the whole, not a specific part. The shares may differ in size, but all co-owners must agree to sell, mortgage, or lease the property. This applies to both freehold and sectional title units.

Key legal points:

• No owner can act alone — all co-owners must consent to any sale, bond registration, or letting.

• Co-ownership of agricultural land is restricted under the Subdivision of Agricultural Land Act 70 of 1970 and requires ministerial consent.

• Private agreements between owners may further restrict what each may do with their share.

• A certificate of registered title (CRT) is required before any mortgage bond or lease can be registered over a co-owner’s share (per section 34(1) of the Deeds Registries Act).

• Banks are often hesitant to accept undivided shares in land as security — they prefer mortgage bonds over the full property.

Tip: If someone wants to buy into a property already held by another, it must be done via a valid Deed of Sale, like any other transfer. If you're buying with a partner or friend, consider signing a co-ownership agreement to set clear rules from the start.

Why then buy property as co-owners:

This is important for the purposes of correctly applying the rates of Transfer Duty.

The contract would be regarded as one indivisible transaction for the aggregate of the values or prices attributed to the properties concerned if a number of properties held under separate title are purchased under one Deed of Sale, and the agreement stipulates the terms of payment of the total consideration payable. On the other hand, when the contract is so worded as to make each Unit of property the subject matter of a contract, which stands by itself, even if embodied in a single Deed of Sale, that contract is divisible and Transfer Duty would be chargeable on the consideration payable in respect of each of such property separately – meaning a much lower value.

Note: Whether a contract is divisible or indivisible is a matter of construction, a crucial point being whether there is an appropriation of separate considerations to the separate parts of the contract. Contact us before signing your contract.