Divorce, the separation of unmarried or PACS partners, inheritance between heirs… many situations lead two or more people to become joint owners of the same property. When one co-owner wishes to remain in the home, a buyout of the other owner’s share (known in France as a soulte buyout) allows the joint ownership to end without the need for a traditional sale.
In this article, we explain the steps involved in buying out a share of a house, how the buyout amount is calculated, how it can be financed, and the applicable property partition tax in 2026. Before calculating the buyout amount, obtaining an online property valuation is an essential first step to determine the property's fair market value.
Summary
A share buyout allows one co-owner to become the sole owner by paying a financial compensation (soulte) to the other co-owner(s).
The buyout amount generally corresponds to half of the property's net value, adjusted according to each party's initial contributions, mortgage repayments and renovation work.
The transaction must be formalised through a notarial deed, and the applicable property partition tax must be paid.
The property partition tax is generally set at 2.5% of the net assets being divided, but is reduced to 1.10% in cases of divorce, legal separation or the dissolution of a PACS.
Financing is most commonly arranged through a buyout mortgage, with interest rates typically ranging from 3.5% to 4% in 2026.
If the co-owners cannot reach an agreement, the court may order a judicial auction sale
Understanding joint ownership and the principle of a share buyout
Joint ownership (indivision) commonly arises in several situations: an inheritance that has not yet been divided between heirs, a divorce involving jointly owned property, or the separation of unmarried or PACS partners who purchased a property together. In every case, each co-owner holds a percentage share of the entire property—often 50/50—without owning any specific physical part of the home.
A share buyout, also referred to as a buyout of the soulte, allows one co-owner to purchase the shares of the others and become the sole owner. The soulte is the financial compensation paid in exchange for acquiring those ownership interests.
The steps involved in buying out a share
1. Property valuation
The first step is to determine the property's market value, ideally through a real estate professional or, if the parties remain in disagreement, by a court-appointed valuation expert. This valuation serves as the basis for calculating the buyout amount
2. Calculating the buyout amount
The buyout amount generally corresponds to half of the property's net value (market value minus any outstanding mortgage balance), adjusted according to several factors, including each party's initial financial contribution, mortgage repayments made since the purchase, renovation work carried out, or any occupancy compensation owed by the person who continued living in the property.
3. Mandatory notarial deed
Whether the joint ownership results from an inheritance, divorce or the separation of unmarried or PACS partners, the buyout must be formalised through a notarial deed (partition agreement). This is also when the property partition tax becomes payable.
Property partition tax in 2026
The property partition tax is a tax payable to the French government when jointly owned assets are divided. In 2026:
The standard rate, which applies in particular to inherited property divisions, remains 2.5% of the net assets being divided (Article 746 of the French General Tax Code).
A reduced rate of 1.10% specifically applies to property divisions resulting from legal separation, divorce or the dissolution of a PACS, a measure that has been in force since 1 January 2022.
As tax legislation may change over time, it is advisable to confirm the rate applicable to your particular situation with your notary.
Financing the buyout: the buyout mortgage
The most common way to finance a buyout is by taking out a new mortgage, sometimes combined with refinancing the existing loan if the original mortgage has not yet been fully repaid. In 2026, interest rates for this type of financing generally range between 3.5% and 4%, with repayment periods of 10 to 25 years.
One of the main issues from the lender's perspective is the release of the former co-borrower. The bank must agree to remove the former spouse or co-owner from the mortgage, which generally requires the remaining borrower to demonstrate sufficient financial capacity on their own, with a debt-to-income ratio typically capped at 35%.
Additional costs should also be anticipated, including notary and deed fees, which generally represent around 2% to 8% of the buyout amount, as well as mortgage security or guarantee fees of approximately 1% to 1.5%.
What happens if the co-owners cannot agree?
When the co-owners cannot agree on either the buyout or the sale of the property, several legal mechanisms are available.
A sale approved by a two-thirds majority allows the majority of co-owners to apply to the court for authorisation to sell the property despite the opposition of a minority co-owner. If authorised, the property is sold through a judicial auction, a procedure that is generally less financially advantageous than an amicable private sale.
A 2026 legal reform (Law of 7 April 2026) further strengthened the powers of the courts regarding the termination of joint ownership—particularly in inheritance cases—and extended certain judicial partition procedures to joint ownership involving married couples, PACS partners and unmarried couples.
Whenever possible, an amicable agreement should be sought before initiating court proceedings, as litigation is usually longer, more expensive and more burdensome for everyone involved.
Contact your local Optimhome real estate advisor
A successful share buyout begins with a fair and reliable property valuation. To secure this crucial step, contact your local Optimhome real estate advisor. They can provide an accurate valuation of your property, refer you to a notary and, where appropriate, help facilitate an amicable solution between the co-owners.
FAQ
Is a notary always required when buying out a share of a jointly owned property?
Answer: Yes. Whether the joint ownership results from an inheritance, divorce or the separation of unmarried or PACS partners, the buyout must be formalised through a notarial deed in order to be legally valid.
How is the buyout amount calculated?
Answer: It generally corresponds to half of the property's net value, adjusted according to each owner's initial contribution, mortgage repayments and any renovation work carried out by each co-owner.
Is the property partition tax always the same?
Answer: No. The standard rate is 2.5%, but it is reduced to 1.10% when the division results from a divorce, legal separation or the dissolution of a PACS.
What happens if the co-owners cannot reach an agreement?
Answer: If no amicable agreement can be reached, one of the co-owners may apply to the court to authorise the sale of the property, which will then take place through a judicial public auction.
Publication author
Fabrice DOBROWOLSKI - Optimhome Network Development Director
Optimhome offers you personalized support for your real estate project. Benefit from all my advice, based on several years of experience, to ensure the success of your project.
