Legal Definitions - cant

Cant refers to a legal procedure used to divide property that is owned jointly by multiple individuals or entities. Instead of physically splitting the property, which is often impractical or impossible (such as with a house or a single piece of land), this method allows one of the co-owners to acquire full ownership.

Here's how it works: the property is awarded to the co-owner who submits the highest bid among all the co-owners. The successful bidder is then legally required to purchase the shares or interests of all the other co-owners. This process ensures that the property remains intact while providing fair compensation to all parties for their ownership stake. This method is also sometimes referred to as licitation.

• Example 1: Inherited Family Home

  Imagine three siblings, Maria, Carlos, and Elena, who jointly inherited their childhood home after their parents passed away. They all have fond memories of the house, but live in different cities and find it challenging to manage the property together. They decide that instead of selling the house to an outside buyer, they will use the "cant" process to resolve their joint ownership. Maria, who wishes to keep the home in the family and use it as a vacation spot, offers to buy out Carlos and Elena's shares. If her bid is the highest among the siblings, she would then pay Carlos and Elena for their respective one-third interests, becoming the sole owner of the property. This illustrates "cant" because the shared property (the family home) is divided among co-owners through an internal bidding process where one owner buys out the others.

• Example 2: Business Partners and Commercial Property

  Consider two business partners, Sarah and Ben, who jointly own a commercial building where their successful restaurant operates. After several years, Ben decides to move abroad and wants to divest his assets, including his half-share of the building. Sarah, who wants to continue running the restaurant in the same location, suggests using the "cant" method. She offers to purchase Ben's 50% interest in the building at an agreed-upon valuation. If Ben accepts her offer, Sarah would then pay him for his share, thereby becoming the sole owner of the commercial property. This demonstrates "cant" as it provides a structured way for co-owners of a business asset to resolve their joint ownership, with one partner acquiring the other's interest.

• Example 3: Jointly Owned Investment Land

  A group of four friends, David, Lisa, Mark, and Chloe, jointly purchased a large undeveloped plot of land as an investment. Over time, their individual financial goals and timelines for development diverge. They decide that rather than selling the entire plot to an external developer, they will use the "cant" process to divide their common asset. David, who has a long-term vision for developing a portion of the land, submits a bid to purchase the shares of Lisa, Mark, and Chloe. If David's bid is the highest and accepted by the others, he would then pay each of them for their respective one-quarter interests, consolidating ownership of the entire land plot under his name. This is an example of "cant" because it's a method for multiple co-owners of an investment property to divide their common asset by one owner buying out the others' stakes.