Civil Code: Co-ownership

(These clauses are selected from The Civil Code of the People’s Republic of China translated and authored by Steve Li and Robert Zhang, international arbitration lawyers registered in Shanghai, China, and published by Kindle Unlimited. No reproduction is allowed unless authorized by the authors.)
 
Chapter VIII Co-ownership
Article 297 Any real or personal property may be co-owned by two or more entities or individuals. Co-ownership includes ownership in common and joint ownership.
Article 298 Each of the owners in common shall be entitled to ownership of the real or personal property owned in common with other owners in proportion to their respective shares.
Article 299 Each of the joint owners shall be entitled to the inseverable ownership of the real or personal property owned jointly with other owners.
Article 300 The co-owned real or personal property shall be managed by the co-owners as agreed, or each of the co-owners shall be entitled and obligated to manage the property in the absence of an express agreement.
Article 301 The disposal, major repair, or change of nature or purpose of a co-owned real or personal property shall be subject to the consent of the owners in common representing more than two-thirds of the total shares or all the joint owners unless otherwise agreed by the co-owners.
Article 302 The management costs and other expenses of the co-owned property shall be paid by the co-owners as agreed, or shared by the owners in common in proportion to their respective shares or shared jointly by the joint owners in the absence of an express agreement.
Article 303 Where the co-owners agree that their co-owned real or personal property shall remain inseverable to maintain their co-ownership, the property shall not be severed unless any co-owner has a material reason for severance. Where severance is not expressly agreed upon, a property owned in common may be severed at any time, and a property owned jointly may be severed if the basis for joint ownership no longer exists or any joint owner has a material reason for severance. In case of damage to or loss of any other co-owner due to severance, compensation shall be made.
Article 304 Co-owners may agree through negotiation on how to sever their co-owned real or personal property, failing which the co-owned property may be severed in kind if severance in kind is feasible without decreasing the value of the property, or shall be liquidated or sold by auction or on consignment to sever the proceeds if severance in kind is not feasible or will decrease the value of the property.
Where the real or personal property obtained by any co-owner upon severance is defective, the other co-owners shall share the losses arising therefrom.
Article 305 Any owner in common may transfer its share in the real or personal property owned in common, in which case the other owners in common shall have a right of first refusal on equal terms.
Article 306 Any owner in common who intends to transfer its share in the real or personal property owned in common shall notify the other owners in common of the terms of transfer in a timely manner. Any other owner in common who intends to exercise the right of first refusal shall exercise such right within a reasonable period.
Where two or more of the other owners in common intend to exercise the right of first refusal, they shall determine their respective purchase proportion through negotiation, failing which their rights of first refusal shall be exercised in proportion to their respective shares at the time of transfer.
Article 307 The co-owners shall be, jointly and severally, entitled to any claim against and liable for any debt to any party other than the co-owners, arising from or relating to their co-owned real or personal property unless otherwise specified by law or such party knows that the claim or debt is not joint and several. Between and among the co-owners, owners in common shall be severally entitled to the claims against and liable for the debts to any party other than the owners in common in proportion to their respective shares in the property owned in common, and joint owners shall be jointly entitled to the claims against and liable for the debts to any party other than the joint owners. Any owner in common whose payment of a debt arising from or relating to the property owned in common in excess of its share may recover the excess from the other owners in common.
Article 308 Where it is not expressly agreed whether a co-owned real or personal property is owned in common or jointly, the property shall be deemed to be owned in common unless the co-owners are members of the same family.
Article 309 The shares of the owners in common in their co-owned real or personal property shall be expressly agreed upon, or determined in proportion to their respective contributions if their shares are not expressly agreed upon, or deemed equal if their contributions cannot be determined.
Article 310 Usufructs or security interests held in common or jointly by two or more entities or individuals shall be governed, mutatis mutandis, by the provisions of this Chapter VIII.