Articles Tagged with Partition By Sale

underwood-selling-partition-property-private-sale-300x300Real property partitions help co-owners and co-tenants divide real estate that they purchased together.  Partition actions can be agreed upon by the parties, but if there is no agreement, a court will oversee the partition.  Under California law, a court will first determine each party’s interest in the property and then determine the way the property will be partitioned.  (Code Civ. Proc., § 872.720(a).)  California Civil Code of Procedure section § 872.720(a) provides: 

If the court finds that the plaintiff is entitled to partition, it shall make an interlocutory judgment that determines the interests of the parties in the property and orders the partition of the property and, unless it is to be later determined, the manner of partition.  (Code Civ. Proc., § 872.720.)  

Property partitions can be completed by dividing the physical property, by selling the property and dividing the amount of the sale among the interested parties, or by appraisal with all parties’ consent.  In partitioning property through a sale without an agreement, courts may select a referee to assist in the sale.  While courts presume that physical division of the properties is the fair option, a party wanting to sell the property can prove that it would be fairer to sell it than it would be to divide it.  (Butte Creek Island Ranch v. Crim (1982) 136 Cal.App.3d 360, 366.)

6302023-300x300California Code of Civil Procedure section 872.130 expands the court’s authority in an effort to make the court system more efficient when ordering a property to be partitioned. The section allows the court to issue temporary restraining orders and injunctions without the hurdles of contempt or general provisions to make such orders. 

Code of Civil Procedure section 872.130 states 

In the conduct of the action, the court may issue temporary restraining orders and injunctions, with or without bond, for the purpose of: 

6282023-300x300Partitions sales and foreclosure sales are two different ways that a property can be sold. The main difference between the two is the purpose behind the two sales. For partition sales, the purpose is to divide the property and for the owners to get the proceeds in proportion to their ownership. The purpose of foreclosure sales is to pay off a borrower’s loan. 

The Partitions Sale Process

Usually, partition sales are ordered by a court. This is because partition lawsuits are often brought before courts by a property owner who wants to force a sale if the parties cannot come to an agreement.  

6232023-300x300California Code of Civil Procedure section 872.120 grants the court continuing jurisdiction to hear all motions and issue any necessary decrees in order to fulfill the purpose of the partition title, which aims to provide the court with broad statutory authority. 

Code of Civil Procedure section 872.120 states 

In the conduct of the action, the court may hear and determine all motions, reports, and accounts and may make any decrees and orders necessary or incidental to carrying out the purposes of this title and to effectuating its decrees and orders. “Action” means an action for partition under this title. 

6212023-300x300Partitions sales and probate sales are two different ways that a property can be sold. A main difference between the two is that a partition sale is ordered and overseen by the court, while a probate sale is generally overseen by a personal representative, and the court can have minimal involvement. There are also specific steps that the personal representative must take in the probate sale process under California law. 

The Partitions Sale Process

Usually, partition sales are ordered by a court. This is because partition lawsuits are often brought before courts by a property owner who wants to force a sale if the parties cannot come to an agreement. 

6162023-300x300The California Code of Civil Procedure plays a pivotal role in shaping the legal landscape of civil actions. The California Partition Law starts at section 872.010 and ends at section 874.323. Among the partition provisions, section 872.030 highlights the importance of consistency in the application of laws in partition actions. Section 872.030 applies the general rules of civil actions to partition actions unless they are inconsistent with the partition statute. If the Partition Law differs from the general sections of the Code of Civil Procedure, the Partition Law trumps the other section because partition actions are tailored to the unique nature of partition disputes and often have specialized requirements. 

Code of Civil Procedure section 872.030 states: 

The statutes and rules governing practice in civil actions generally apply to actions under this title except where they are inconsistent with the provisions of this title. 

672023-300x300Partitions sales and divorce sales are two different ways that a property can be sold.  One difference between the two is that in a partition sale, the court usually decides the proportion of ownership and how the proceeds are distributed among the owners, while in a divorce sale, the court generally must divide the property equally. Another difference is that the divorce sale process is similar to a normal real estate sale. Both sales can be determined informally among the parties or ordered by a court.   

The Partitions Sale Process

Usually, partition sales are ordered by a court. This is because partition lawsuits are often brought before courts by a property owner who wants to force a sale if the parties cannot come to an agreement. Read more about partition actions generally here

622023-300x300Partitions sales and trustee sales are two different ways that a property can be sold. A main difference between the two is that a partition sale is ordered and overseen by the court, while a trustee sale is overseen by a third party in relation to foreclosure proceedings. While the third party is not beholden to a court ruling in a trustee sale, they must still follow the procedures outlined in California law. 

The Partitions Sale Process

Usually, partition sales are ordered by a court. This is because partition lawsuits are often brought before courts by a property owner who wants to force a sale if the parties cannot come to an agreement. Read more about partition actions generally here

5172023-300x300Lawsuits that affect interests in real property, such as partition actions, often require courts to adjudicate competing claims regarding who should have title to or possession of real property. In general, courts adjudicating such disputes follow the principle of “first in time, first in right.” Under this principle, “a conveyance recorded first generally has priority over any later-recorded conveyance.” (First Bank v. East West Bank (2011) 199 Cal.App.4th 1309, 1313.) 

An important factor that courts consider when adjudicating cases affecting interests in property is whether each party affected by the court’s judgment had notice of the litigation or judgment. A judgment affecting title to or possession of real property that is recorded imparts “constructive” notice to a subsequent transferee or encumbrancer. When recorded, such judgment is effective against any subsequent conveyance or encumbrance, regardless of whether the parties to that judgment receive notice about the subsequent conveyance or encumbrance. (Civ. Code, § 1214.) 

In contrast, a judgment that is not recorded with the recorder’s office of the county in which a property is located does not impart constructive notice to subsequent transferees or encumbrancers of the property. Any such judgment generally is not binding on a subsequent transferee or encumbrancer who acquires and records an interest in the property without notice of the prior litigation or judgment. (Civ. Code, § 1214.) 

5102023-300x300Generally, a co-owner of real property may commence an action in a partition. Owners of an estate of inheritance, a life estate, or an estate for years who hold such interest concurrently or in successive estates may seek to partition the property. (CCP § 872.201(a)(2).) Those with concurrent interest in the property may partition the property as of right unless barred by a valid waiver. (CCP § 872.710(b).) As such, a co-owner of the property has an absolute right to partition, absent a valid waiver. (Orien v. Lutz (2017) 16 Cal.App.5th 957.) 

What are the Different Types of Co-Owner Relationships? 

Partition actions most often result from joint ownership problems falling into four broad categories: (1) Father/Mother-Son/Daughter tenants in common in real estate; (2) Brother-Sister shared tenants in common in real estate; (3) Investor-Investor shared tenants in common in real estate, and (4) Non-Married Partners shared tenants in common in real estate. 

Contact Information