REAL ESTATE PARTITION ACTION
The owners of a parcel of real property may voluntarily agree to sell the property and terminate their common interest. As an alternative, one or more of the owners may sell their interest in the parcel of real property to other owners of the subject property.
A special lawsuit may be filed in court to terminate the common interest of the owners of property if they do not voluntarily reach an agreement. In effect, the partition action is a lawsuit to terminate common interest of parties in a parcel of real estate.
In the partition action, court may determine that the parcel of the real property could be subdivided. In such a case, the court will order the property be subdivided based on the interest of the owners of property.
If the court determines that the property could not be subdivided – for example, the property is single-family house – then the court will order the sale of property. The parties will receive the proceeds of sale according to their interest in the property.
As an alternative, and if one or more of the parties are interested to purchase the interest of other owners, the court may require the appraisal of subject property. The rights and interests of the parties who are willing to sell would be determined based on the appraisal made on the subject property.
In each situation, the parties would receive a share of proceeds of sale according to the percentage of their ownership in the property. However, the parties in the litigation may also seek for accounting from the other owners of property. Several factors determine the outcome of the litigation pertaining to the rights of parties to the proceeds of sale. The most common factor is the rent payable by one party to others if he or she lived at the property without paying rent. Other factors involve payment of taxes, insurance, upkeep of property, and improvement of property by one or more owners. The costs and attorneys’ fees are also factors in the outcome of the litigation.
For more information call us at (310)553-5562.
The owners of a parcel of real property may voluntarily agree to sell the property and terminate their common interest. As an alternative, one or more of the owners may sell their interest in the parcel of real property to other owners of the subject property.
A special lawsuit may be filed in court to terminate the common interest of the owners of property if they do not voluntarily reach an agreement. In effect, the partition action is a lawsuit to terminate common interest of parties in a parcel of real estate.
In the partition action, court may determine that the parcel of the real property could be subdivided. In such a case, the court will order the property be subdivided based on the interest of the owners of property.
If the court determines that the property could not be subdivided – for example, the property is single-family house – then the court will order the sale of property. The parties will receive the proceeds of sale according to their interest in the property.
As an alternative, and if one or more of the parties are interested to purchase the interest of other owners, the court may require the appraisal of subject property. The rights and interests of the parties who are willing to sell would be determined based on the appraisal made on the subject property.
In each situation, the parties would receive a share of proceeds of sale according to the percentage of their ownership in the property. However, the parties in the litigation may also seek for accounting from the other owners of property. Several factors determine the outcome of the litigation pertaining to the rights of parties to the proceeds of sale. The most common factor is the rent payable by one party to others if he or she lived at the property without paying rent. Other factors involve payment of taxes, insurance, upkeep of property, and improvement of property by one or more owners. The costs and attorneys’ fees are also factors in the outcome of the litigation.
For more information call us at (310)553-5562.
