It is not uncommon for one or more people to own a single piece of real estate, whether through a joint investment, inheritance or other reasons.
However, these joint ownerships often lead to disputes when someone wants to sell the property and the other wants to keep it.
In these types of impasses, a partition action may be the best solution. If you find yourself in this situation, here’s what you need to know.
What is a partition action?
A partition action is a legal proceeding that aims to divide property owned by two or more entities. This type of action is typically beneficial when co-owners cannot agree on how to divide or sell the property.
A partition action can be a viable option in these scenarios:
- Ex-spouses who still co-own property after divorce
- When siblings inherit a property and cannot agree on whether to keep or sell it
- When investment partners disagree on whether to sell or keep a property
In any case, a partition action becomes necessary when co-owners reach a stalemate and find themselves needing a third party.
How does the process work?
A partition action starts when one owner (plaintiff) files a civil lawsuit against the other/s (defendant/s). A judge will then be appointed to review information from each party.
The judge will ultimately decide what partition action will be fairest and most beneficial. There are three main types:
- Partition in kind: This action is applicable when it is physically possible to divide the property, so it is most common for raw land. When the judge orders a partition in kind, you and the owners receive an equitable share of the land, which is often based on value rather than size.
- Partition by sale: Real estate is often too difficult or impossible to physically split. A partition by sale offers a solution by ordering the sale of the home. You and the other owners will then receive a fair share of the proceeds.
- Partition by appraisal: Lastly, a partition by appraisal may be the only solution if one owner is willing to keep the property. If you want to sell it, the owner who wants to keep the property will buy you out. However, the price will be based on the findings of a third-party appraiser.
Dividing property is often a complex matter, which is why the services of a real estate attorney can be invaluable. They can help you understand your legal options and guide you through the partition process, all while protecting your best interests.