When Do Property Owners Need to File a Partition Action?

On Behalf of | Jan 31, 2025 | Real Estate Law

Owning property is often seen as a symbol of stability and financial security. However, when multiple people share ownership of a property, disputes can arise. Whether it’s an inherited home, an investment property, or land purchased with a partner, co-ownership can sometimes lead to disagreements over financial responsibilities, maintenance, or future plans for the property.

In such cases, a partition action may be the best legal solution to resolve disputes and protect an owner’s financial interest. But when exactly should property owners consider filing a partition action?

What Is a Partition Action?

A partition action is a legal process that allows co-owners of real estate to divide or sell the property when they cannot agree on its use, upkeep, or disposition. This court-ordered solution ensures that each party receives their fair share of the property’s value and that disagreements don’t lead to prolonged financial strain.

Partition actions are particularly common in situations where:

  • Co-owners inherit a property but have different plans for its use.
  • One party wants to sell the property while others refuse.
  • A co-owner fails to contribute to expenses, such as mortgage payments, taxes, or repairs.
  • There is an unequal division of responsibilities, with one party handling all the upkeep while others benefit.

Instead of allowing disputes to escalate, a partition action can provide a structured and legally binding resolution.

Common Situations Where a Partition Action May Be Necessary

1. Inherited Property with Multiple Owners

When a family member passes away and leaves property to multiple heirs, those heirs often become joint owners. While some may wish to keep the home for sentimental reasons, others may want to sell it and divide the proceeds. If the co-owners can’t agree, a partition action can force the sale or division of the property, ensuring each party gets their fair share.

2. Disagreements Among Co-Owners of Investment Properties

Friends, business partners, or unmarried couples sometimes invest in property together. While this can be a great financial move, differing opinions on property management, rental income, or when to sell can cause friction. If one party wants to cash out their investment but others refuse, filing a partition action may be the only way to resolve the issue.

3. One Co-Owner Fails to Pay Their Share

All property owners share financial responsibility for mortgage payments, taxes, insurance, and upkeep. If one co-owner stops contributing their fair share, the burden falls on the remaining owners. This can lead to financial hardship and resentment. A partition action can help a responsible owner recover their financial investment and sever ties with a non-paying co-owner.

4. A Co-Owner Refuses to Maintain the Property

Property maintenance is a shared responsibility. If one owner neglects necessary repairs or allows the property to fall into disrepair, it can affect the home’s value and create liability risks. A partition action may be necessary to either force a sale or buy out the neglectful party’s share.

5. When One Party Wants to Sell and Others Do Not

Real estate markets fluctuate, and co-owners may have different ideas on when the best time is to sell. If one person wants to sell their share of the property but others refuse to cooperate, a partition action can compel a sale, allowing the willing party to receive their portion of the proceeds.

How Does a Partition Action Work?

When a property owner files a partition action, the court will review the case and determine the best way to divide the property. Depending on the circumstances, there are typically three possible outcomes:

1. Court-Ordered Sale of the Property

In most cases, the court will order the property to be sold, with the proceeds divided among the co-owners according to their ownership interests. This is the most common resolution when the property cannot be physically divided (such as a house or commercial building).

2. Co-Owner Buyout

If one or more co-owners want to keep the property, the court may facilitate a buyout, where one owner purchases the other’s share at a fair market value. This allows the party who wishes to remain to retain ownership without forcing an unwanted sale.

3. Physical Division of the Property

For large, undeveloped properties, the court may divide the land into separate parcels, allowing each owner to retain sole ownership of a portion. However, this is only possible in cases where division is practical and does not significantly reduce the value of the property.

The Importance of Acting Quickly

Property disputes can escalate over time, leading to financial loss, legal complications, and strained relationships. If you find yourself in a co-ownership dispute, acting quickly to file a partition action can prevent further financial and emotional stress.

A well-executed partition action ensures that property owners receive their fair share of the asset while preventing further disputes and financial burdens. If you’re facing co-ownership challenges, consulting with an experienced real estate attorney can help you understand your rights and determine the best course of action.