Buying a house with someone else can be a great way to cut down on the rising cost of living and monthly mortgage payments. More people are buying homes before getting married, teaming up with friends to purchase property, or inheriting a house alongside siblings. But when you’re ready to move on, disagreements between owners can stall the process.
While usually a last resort, a partition action can create a clear path forward when negotiations break down. Whether you’re selling in Sacramento, CA or Portland, ME, we’ve partnered with Underwood Law Firm to help explain partition actions and when they might be the right choice for you.
In this article:
What is a partition action?
“A partition action is a type of lawsuit that allows any title owner to ask the court to force a sale of the property when the co-owners can’t agree on what to do with it,” explains Elijah Underwood, founder of Underwood Law Firm which specializes in partition actions in California.
There are two types: partition in kind and partition by sale.
“A partition in kind is the process of physically dividing the property between co-owners,” Elijah says. This type of partition action is more traditional, as it was typically used to split land between owners. Since most modern partition actions involve properties like homes that are not able to be physically split between co-owners, a partition by sale is used most often.
“Once the property is sold, the proceeds are divided equitably among co-owners based on their percentage of ownership,” Elijah adds.
Partition actions are commonly used for:
Step-by-step: What happens in a partition action
While each state has its own laws and guidelines to review, the process generally proceeds in the following steps:
- A co-owner files a lawsuit in the county where the property is located.
- The court confirms ownership shares using the deed and any agreements.
- An interlocutory judgement is ordered by the court. “This is essentially the court stating that it finds the plaintiff, the co-owner filing the lawsuit, is entitled to a partition of the property,” explains Elijah.
- A partition referee, or a court-appointed third party, assesses the property and reports their findings to the court.
- The court determines the best method for partitioning the property based on what is most equitable.
- The home is sold and the proceeds are distributed based on the court’s order.
Seeking help from a partition lawyer or legal professional who specializes in partition actions like Underwood Law Firm can facilitate an easier process and help you advocate for your best possible outcome.
Pros and cons of a partition action
This can be a complex process, and it’s important to weigh the pros and cons before proceeding. “We generally encourage or require clients to formally attempt a resolution of the matter before bringing a partition lawsuit,” adds Elijah, “as it’s best if you can work it out amongst yourselves.”
Pros
- Forces a resolution when owners are stuck
- Protects your ownership rights
- Converts shared property into cash
- Provides court oversight and structure
- Assistance of knowledgeable council
Cons
- Legal fees and court costs can be expensive
- The process can be long and time consuming
- Lawsuits can strain family or partner relationships
- Continued interactions with a difficult co-owner can be emotionally draining
- Court-ordered sales may fetch lower prices than private listings
Bottom line
Selling a house with multiple owners can be a complex process regardless of your relationship to the other co-owners. A partition action provides a legal way out when progress is stalled. “We give people an escape hatch when you’re stuck in a bad real estate relationship,” says Elijah.
As these kinds of issues come up more frequently with more tenancy in common situations, it’s important to be aware of all your options and prepare for any scenario.
FAQs on partition actions
What is a partition action?
A partition action is a legal action that one person can take to force the sale of a house when one co-owner does not want to sell. While not always ideal, it can bring a resolution to a long process that can be financially and mentally taxing.
Can one co-owner force the sale of a house?
Yes. In most states, any co-owner can file a partition action to force a sale no matter how much of the house they own.
How long does a partition action take?
The timelines for any case can vary depending on how complex the issue is and how quickly the parties can come to a resolution, but partition actions generally take a while. Some can last between several months to over a year.
Can a partition action be taken with more than two co-owners?
Yes, any co-owner can take a partition action against other co-owners regardless of how many there are.
Can one owner buy out the others instead?
Yes, the other co-owners can still buy out the plaintiff’s share if a partition action is started. If the other co-owners cannot afford to buy out the share, the house will be sold and the funds will be split equitably between the parties based on ownership amount.