What is a real estate partition action and how can you draw upon the 40+ years of real estate legal experience at the Watkins Firm to accomplish your objectives? What are some of the most important issues to consider in a matter involving the partition of real estate? Are there different types of California statutory partition procedures?
A partition action in San Diego or throughout California involves real estate parcels with multiple owners. Generally speaking, a dispute may arise when one of the property owners wants or needs to sell their position in the associated real estate, while other owners wish to keep their interests in the property. This creates a tension and often a significant dispute between the ownership interests. How is this to be resolved?
Put 40+ Years of Real Estate Legal Experience on Your Side of the Equation
If you are involved in a dispute or potential real estate partition action, you need to put the Watkins Firm’s 40+ years of real estate legal experience on your side of the equation. California law provides an opportunity to divide an interest in any parcel of real estate as well as any improvements that might exist on the property. This extends to a single-family dwelling, commercial building, farm, or multi-tenant structure, as well as all man-made improvements such as fencing, easements, debt, and income associated with the property in question.
There is a concept in California real estate law described as the “bundle of rights.” This extends to several specific rights and interests a property owner retains as it relates to the real estate they control. These include Rights of Possession, Enjoyment, Control, Exclusion and Division. Each of these rights may have an impact on the use of a property as well as its value. This “bundle of rights” also creates complex and substantial legal and financial challenges in a dispute or partition action.
How is the ownership of the real estate interest in question held? There are several forms of ownership in California real estate including tenancy in common, joint tenancy, and tenancy by entirety (involving married co-owners and often an issue in divorce proceedings).
There Are Several Forms for a Real Estate Partition Action in California – Which is Best for Your Unique Circumstance?
A real estate partition action in California is a request of the Court to enforce a division of property interests or the sale of real property. This legal process is usually the result of a real estate dispute between property owners regarding what is to be done with the property.
In many cases involving multiple owners in a real estate venture, the owner who wishes to sell their interest is bought out by the remaining owner(s). However, in other situations, the remaining owners do not wish to or are unable to buy out the interest of the dissenting co-owner, or the parties cannot agree upon a fair valuation. These are separate problems, and this is why you need the advice and counsel of the Watkins Firm. Draw upon our 40+ years of experience resolving real estate ownership disputes while accomplishing our client’s goals and objectives.
In some cases, the owner who wishes to sell may be required to consider a real estate partition action. A partition action is a request by one of the owners of a real estate interest for the Court to approve a judgment that forces the sale of the property itself. The Court will also be responsible for determining how the proceeds from the sale are to be distributed between the parties.
There is a process often referred to as “the accounting” in any partition action in California where the Court must determine each party’s interest in the property in terms of debt, investment percentages, unequal expenses and credits.
There are Actually Three Separate Types of Partition Actions in California
Here in California, the preferred type of partition action is known as a “Partition in Kind.” California law states that “in the absence of proof to the contrary, the presumption of favor of in kind division will prevail [136 Cal.App.3d 360, 365, (Butte Creek) (Butte Creek Island Ranch v. Crim)]. A partition in kind results in a process where the Court physically divides the real estate in question into separate “plots” and assigns each plot to the relevant co-owner based upon their accounted interest.
A “Partition by Appraisal” is ordered when the owners of the property all agree to a real estate appraisal. The owner who wishes to force the sale agrees to sell their post “accounting” interest to the other owners of the property at the appraised price.
A “Partition by Sale” simply puts the property in question up for sale on the open market. The Court will often appoint an experienced realtor or “referee” to manage the sale of the property for the highest possible value.
There are many potential paths to resolve these complex financial and legal real estate disputes at any point in the process. This is why it is important to work with the experienced California real estate attorneys at the Watkins Firm. Ask about our approach to resolving disputes between co-owners of real estate and how we apply our experience and legal skill to protect and achieve your goals in the process.
We invite you to review our podcast Episode 8 – Real Estate Law Overview as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.