Articles Tagged with Partition action

underwood-guide-necessary-parties-partition-action-300x300The purpose of this blog post is to discuss who must be named in a partition lawsuit. It is important to name all the necessary parties so that the Court can properly issue a judgment at the conclusion of the partition action. As partition lawsuits involve rights to property, it is pretty obvious that the owners of the property and the mortgage broker should be joined. But the question becomes more difficult as the interests become less connected, like easement holders or other persons who have liens against the individual owners. As such, this article aims to provide clarity on the process. 

What Does the Law Say?

Under Code of Civil Procedure section 872.510, the plaintiff must join as defendants all persons having or claiming interests in the estate, persons who are actually known to the plaintiff to have such interests, or persons who, from an inspection of the property, appear to have such interests. Sections 872.510 to 872.550 define “interest,” as situations, includes liens, and a “lien” means a mortgage, deed of trust, or other security interest in property whether arising from contract, statute, common law, or equity. According to the Legislative Committee Comment, under Section 872.510, only persons having interests in the estate or estates as to which partition is sought need to be joined. 

underwood-receive-notice-of-sale-partition-action-300x300The purpose of this article is to explain a partition sale and who must be notified of a sale. If the co-owners cannot agree about what to do with a property or whether they want to sell it, a partition action may be necessary. This means forcing the sale of the property to divide the co-owners’ interests in it and divide the value of the property accordingly. Because a home or property cannot necessarily be physically split in half, it must be sold. When that sale occurs, the law requires certain parties to receive notice of that sale. 

How does a sale in a partition action work?

A property sold through partition generally sells in the same manner as a normal seller. A sale in a partition action is often done through a referee. This is usually done through a public auction or a private sale. If it is being sold publicly through the court, an appraiser will value the property and it will be sold at a public auction which occurs under court supervision. The court may specifically include its own terms for the sale such as all cash, sale on credit with a specified type of security, etc. (CCP § 873.630.) 

underwood-costs-of-partition-action-300x300In every lawsuit, one of the biggest consideration is the cost. Frequently, clients are very eager to understand the amount that they will be required to pay to have their case resolved. After all, most people do not have a pot of money set aside for lawsuits, and are forced to eat into their savings to pay for an attorney to help with their legal problems. Even when attorneys’ fees are available for reimbursement, as they are in a partition action, the question of costs is always a significant question. 

While an attorney can never predict the exact amount down to the dollar that a case will cost, they can and should share the factors that could influence the amount that the client may ultimately have to pay to get the case resolved. For example, in a partition action, there are common issues that arise that could change the cost of the matter. That said, a relatively vanilla partition action generally costs more or less between $10,000 to $30,000.  

Factors that Affect a Partition Action

underwood-distributions-proceeds-partition-action-300x300Before the owners receive the proceeds from a partition sale, costs and expenses related to the partition action must be paid. Code of Civil Procedure section 873.820 sets forth the order that these expenses and costs must paid before the owners receive their proportional interest in the remaining proceeds. Specifically, it states that the proceeds must be distributed in this order:

  1. Payment of the expenses related to the sale
  2. Payment of the costs arising out of the partition

underwood-testimony-property-value-partition-cases-300x300The estimated value of a piece of property can be important for resolving several types of legal disputes. It is crucial when a property owner needs to establish damages when the government interferes with the owner’s property and diminishes its value. Spouses may wish to testify regarding the value of their marital property when it is divided during divorce proceedings. A property owner may also want to testify as to their property’s value to contest a bank’s foreclosure on the property.

Testimony regarding a property’s estimated value can also be important during partition proceedings: when one or more co-owners of a property want to sell their property interest a question arises under the Partition of Real Property Act as to the Property’s value. As such, determining who can answer that question becomes of critical importance.

Normally, who can testify as to a property’s value?

underwood-how-to-file-partition-action-california-300x300When co-owners of real estate cannot agree on how to divide or use their property, filing a partition lawsuit becomes a necessary course of action. In California, where real estate is often a significant investment, understanding the process of partitioning property is essential. In this article, we’ll walk you through the steps involved in filing a partition lawsuit in California, empowering you to navigate this legal process effectively.

What should you know before filing a Partition Action?

1. Understand the Concept of Partition.

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underwood-partition-actions-personal-representative-300x300Often times, a person’s estate includes property. While property disputes between co-owners are complicated enough, a property dispute including the estate of a deceased person adds an entirely different layer of complexity to the situation. In these instances, there are special laws that apply to help to clarify the process.  

This article will discuss who may bring a partition action on behalf of a deceased person, and address some of the complexities of that process. These complexities arise because of something known as “venue,” or the specific rules relating to the right place or forum to resolve the dispute. In other words, a debate about where to have the debate. Hopefully, this article will clarify that process to simplify what is already an emotionally difficult situation. 

Who can sue on behalf of a deceased person

underwood-law-com-recognizes-partition-firm-300x300Underwood Law Firm is a finalist for the California Legal Awards’ Vanguard Award.

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What if parties do not appear in a lawsuit requesting partition in kind under the Partition of Real Property Act?

underwood-partition-real-property-guide-part-5-300x300Just as there are special provisions for defaulting parties with partitions by sale, so too are there unique rules where some defendants fail to appear in a partition in kind action. 

The text of the statute provides that, “if the court orders a partition in kind, the court shall allocate to the cotenants that are unknown, unlocatable, or the subject of a default judgment… a part of the property representing the combined interests of these cotenants as determined by the court.” (CCP § 874.318 (d).) 

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