Buying a home with someone else is a great way to reduce the rising cost of living and monthly mortgage payments. More and more people are buying a home before getting married, working with friends to buy real estate, or inheriting a home with a sibling. But when you’re ready to move on, disagreements between owners can stall the process.
Although usually a last resort, breakup actions can create a clear path forward if negotiations break down. Whether you sell in Sacramento, CA or Portland, ME, we have partnered with Underwood Law Firm to explain partition actions and when they may be the right choice for you.
In this article:
What is a partition action?
Elijah Underwood, founder of the Underwood Law Firm, which specializes in partition litigation in California, explains, “Partition litigation is a type of litigation in which a title holder can ask the court to force a sale of a property when co-owners cannot agree on what to do with the property.”
There are two types: spot split and sales split.
“Partition-in-kind is the process of physically dividing property between co-owners,” Ilya says. This type of partition action is more traditional as it was typically used to divide land between owners. Most modern partition actions involve real property, such as a home, that cannot be physically divided between co-owners, so partition by sale is most commonly used.
“When the property is sold, the proceeds are divided equitably among the co-owners based on their percentage ownership,” Ilya added.
Partition actions are typically used to:
Step by step: What happens with partition actions
Although each state has its own laws and guidelines to consider, the process typically follows these steps:
A co-owner filed a lawsuit in the county where the property is located. Courts use deeds and contracts to confirm ownership shares. Interlocutory judgments are ordered by the court. “This essentially indicates that the court has determined that the plaintiff, the co-owner who filed the lawsuit, is entitled to a division of the property,” Ilya explains. A partition judge, or a third party appointed by the court, evaluates the property and reports the results to the court. The court will decide the best way to divide the property based on what is most fair. The house will be sold and the proceeds will be distributed according to a court order.
Seeking the help of a partition attorney or legal professional who specializes in partition cases, such as those at Underwood Law Firm, can ease the process and help you advocate for the best possible outcome.
Advantages and disadvantages of partition actions
This can be a complicated process, so it’s important to weigh the pros and cons before proceeding. “We typically encourage or require our clients to formally attempt to resolve the issue before filing a partition action,” adds Ilya. “Because it’s best if we can figure it out ourselves.”
Strong Points
Force a resolution if the owners are stuck Protect your property rights Convert common property into cash Provide court oversight and structure Support from a knowledgeable council
Cons
Legal fees and court costs can be high Procedures can be long and time-consuming Litigation can put strain on relationships between family members and partners Continuous interaction with difficult co-owners can be emotionally draining Court-ordered sales can fetch lower prices than private listings
conclusion
Selling a home with multiple owners can be a complicated process, regardless of the relationship with the other co-owners. Partition actions provide a legal method when progress stalls. “We provide people with an escape hatch when they find themselves in a bad real estate relationship,” says Ilya.
In a typical situation, the more tenants you have, the more frequently these types of issues occur, so it’s important to be aware of all your options and be prepared for any scenario.
Partition Action FAQ
What is a partition action?
A partition action is a legal measure that one person can take to force the sale of a home if one of the co-owners does not want to sell it. While not always ideal, it can provide a solution to a long process that can be financially and emotionally taxing.
Can one of the co-owners force the sale of the house?
yes. In most states, joint owners can file a partition action to force a sale, regardless of the square footage of their home.
How long does a partition operation take?
The timeline in any case will vary depending on how complex the issue is and how quickly the parties can reach a resolution, but partition actions usually take time. Some may last from several months to over a year.
Can I perform a split action with more than two sharers?
Yes, any share owner can perform partition actions on other share owners, regardless of the number of share owners.
Can one owner buy out another owner on their behalf?
Yes, even if a partition action is initiated, the other co-owners can buy out the plaintiff’s shares. If the other co-owners cannot afford to buy out their shares, the house is sold and the funds are divided equitably between the parties based on the amount of ownership.
