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Real estate is expensive, and multiple parties often own one property through a gift, inheritance, or other means. Sometimes disagreements between the co-owners can occur. For example, one person may want to keep the property, while the other co-owner may want to sell it. A partition lawsuit can be the best way to decide what to do.
Schmidt & Clark lawyers have dealt with numerous property lawsuits. Here’s everything you should know about filing a partition lawsuit so that you can protect your real estate interests.
Summary of the Key Findings
- A partition suit is a legal action when multiple people have the right to a property and can’t agree on what to do with it.
- There are three kinds of property ownerships that have the right to file a partition suit.
- You need an attorney to help you find the legal remedy for a partition action.
What are Partition Lawsuits?
Partition lawsuits happen when two or more people have ownership of one piece of property, and they can’t agree on what to do with it. For example, one party wants to sell, the other wants to rent, and the third wants to build a new structure.
This kind of lawsuit commonly happens when family members can’t agree on what to do with the actual property, during divorcee proceedings, or after a failed business partnership.
“The purpose of a partition proceeding is to eliminate a present concurrent interest in the same property so that each owner may enjoy and possess their interest in severalty.” Cornell Legal Information Institute
Partition action usually ends in two ways:
- The court orders the sale of the real property at auction or private sale. Each co-owner gets an equal share of the sale proceeds.
- The court awards ownership to one person and orders them to buy the interest from other co-owners. This only happens in rare cases.
Most commonly, this lawsuit ends up in a forced sale. Partition is different from other lawsuits, such as quiet title and ejectment.
Partition requires a common title or interest in the property and not two competing property ownership claims.
Who Can File Partition Lawsuits?
When co-owners disagree on property division, the court may intervene to determine how it should be partitioned. There are three main types of partition [1]:
- Partition in Kind: The property is physically divided among co-owners based on their shares. This works best for larger, easily divided properties, like agricultural land. Courts generally prefer this method unless it causes significant harm.
- Partition by Sale: If dividing the property would reduce its value, the entire property is sold, and the proceeds are distributed based on ownership. This is common for residential properties where physical division is impractical.
- Partition by Allotment: One co-owner is granted full ownership of the property and compensates the others for their share. This is typical in family estates when one party wants to retain the property, like a family home, and buys out the other's interests.
Understanding the Different Types of Property Partition and Their Legal Implications
Feature | Partition in Kind | Partition by Sale | Partition by Allotment |
---|---|---|---|
Definition | Physical division of the property among co-owners | Sale of the entire property with proceeds divided | Awarding full ownership to one owner with payment to others |
Pros | - Preserves ownership - Allows continued use |
- Quick resolution - Fair market value realized |
- One owner retains full control - Simplifies ownership |
Cons | - May not be feasible for all property types - Can lead to disputes over division |
- May be against the will of some owners - Loss of property control |
- Requires agreement on valuation - May lead to resentment among co-owners |
Typical Scenarios | - Large tracts of land - Properties that can be fairly divided (e.g., farmland) |
- Residential homes that cannot be divided - Properties with significant disagreements among owners |
- Family estates where one party wants to retain the property |
Estimated Timelines | 6 months to 2 years, depending on complexity | 3 months to 1 year, depending on market conditions | 6 months to 1 year, depending on court processes |
Cost Implications | - Legal fees for partition action - Possible appraisal costs for property value determination |
- Legal fees for partition action - Costs associated with sale (e.g., agent fees) |
- Legal fees for partition action - Appraisal costs for determining value |
Process of Filing for a Partition Suit
To file a personal property lawsuit, you have to be familiar with the partition statute in your state. You should consult a real estate attorney, who will explain your legal rights and help you file the suit.
Here’s what the partition process looks like:
- File a petition to partition or a partition action — It has to be filed in the court where the real estate is located, and all co-owners have to be named. A default notice, a document notifying everyone with the ownership interest of the suit, is filed at the same time.
- Judge issues an interlocutory judgment — The court decides that the plaintiff has the right to partition. Once this right has been established, the judge will issue an interlocutory judgment. The judgment sets forth property owners' interest in the property, orders for the real estate to be partitioned, and decides how it will be partitioned.
- Appointing a partition referee — The superior court has to appoint a referee whose job is to oversee the partition action and make sure it’s done fairly and according to all joint tenants or owners’ interests. All individuals with ownership rights are obligated to pay for the referee’s legal fees.
- Reaching the solution — If all parties are willing to cooperate, the result can be reached with no litigation. Your attorney can negotiate a partition agreement out of court. If the parties can’t reach an agreement, the court makes a final decision in the partition case.
Timeline of Key Stages in the Partition Process
The partition process can take several months, with different stages requiring varying amounts of time. Understanding the estimated timeline will help you manage expectations and prepare for each step.
Stage | Estimated Timeline |
---|---|
Preparation of Documents | 1-2 weeks |
Filing Petition | 1 day |
Service of Process | 1-3 weeks (depending on location) |
Court Hearing for Partition | 2-6 months (depends on court schedule) |
Final Judgment and Distribution | 1-3 months (after hearing) |
The preparation stage typically takes the longest; gathering all the necessary documents can be time-consuming. Once filed, the process moves relatively quickly, though the court hearing and final judgment may take several months, depending on your jurisdiction’s caseload.
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Essential Documents You Need for a Partition Action
To start a partition action, you’ll need to gather various documents that prove ownership, outline the ownership interests, and detail the reasons for seeking partition.
These documents include:
- Property Title Documents: These are the deeds or title documents proving property ownership. They serve as the foundational evidence of your claim.
- Ownership Interests: You’ll need documentation outlining the percentage of ownership each co-owner holds. This helps clarify who owns what share of the property.
- Petition for Partition: This is a formal request to the court and should include the names and addresses of all co-owners, a description of the property, and the reasons for seeking the partition.
- Notice of Partition Action: Proof that all co-owners were informed of the partition action. This ensures that all parties are aware and can participate in the process.
- Financial Records: Any records that show financial contributions made by each co-owner, such as mortgage payments, property taxes, and maintenance costs, will help clarify ownership rights.
- Appraisal Reports: In some cases, the court may require professional appraisals to determine the property’s fair market value.
- Any Relevant Agreements: If there are any written agreements between the co-owners, such as regarding property use or financial obligations, those need to be included.
- Evidence of Disputes: If you are seeking partition due to disagreements about property use or management, having documentation of these disputes can strengthen your case.
Common Pitfalls in the Partition Process and How to Avoid Them
Partition actions may seem straightforward, but several common pitfalls can delay the process or lead to complications. By understanding these potential issues and planning, you can avoid costly mistakes.
Common pitfalls include:
- Incomplete Documentation: Failing to submit all necessary documents can delay your case and even result in dismissal. Make sure you’ve checked the checklist carefully to gather everything in advance.
- Not Including All Co-Owners: If any co-owner is left out of the lawsuit, it could cause delays or dismiss the case. Double-check that all parties with ownership interest are included.
- Misunderstanding Ownership Interests: Incorrectly calculating or documenting ownership shares could lead to disputes or confusion later on. Review all records thoroughly to ensure accuracy.
- Failure to Serve Notice Properly: Improper notice can lead to legal challenges or delays. Follow your state’s notice requirements exactly, and include publication if a co-owner cannot be located.
- Ignoring Local Laws and Procedures: Each jurisdiction may have specific rules and regulations governing partition actions. Consulting with a local attorney can help ensure compliance with all requirements.
- Underestimating Costs: Legal, appraisal, and court fees can add up quickly. It's important to prepare a budget that accounts for all potential expenses throughout the process.
Related Articles:
- Understanding the Types of Legal Fees
- Highest Paid Types of Lawyers
- What Happens to a Lawsuit When the Plaintiff Dies?
- Will I Lose My Home if I Don't Pay the Property Taxes?
FAQ
How Much Does a Partition Suit Cost?
Partition suits can cost between $20,000 and $100,000, depending on the attorney’s fees. Attorney fees and other costs are usually paid according to each party’s legal right to the property.
Get Help From a Trustworthy Law Firm
Partition suits can be difficult, especially if one co-owner wants to prove he has an undivided interest in the land. The suits most commonly end up in the sale of the property, and the money is divided between each property owner. If you find yourself in a situation that requires a partition suit, the Schmidt & Clark team of experienced lawyers can assist you.
Our lawyers are familiar with laws in each state, and we value each attorney-client relationship equally. Contact us today to establish your property ownership.
References:
1.) https://www.investopedia.com/terms/t/tenancy_in_common.asp