Horizontal property is a common legal institution in many codified law countries that establishes property rights on apartment or office buildings among different owners. Applying a version of the Coase theorem, in this paper we analyze it as a solution to establish rights on assets that jointly yield services subject to individual and joint consumption (private and public goods). Under certain conditions, this institution seems to economize transaction and governance costs, especially in cases where the governance costs of a centralized condominium are relatively high and the number of economic agents involved (that is, the number of apartments of the building) is also high.