Multiple individuals owning real estate is a fairly common thing. There are several reasons why multiple individuals would own real estate together, including investment partnerships, deliberate decisions, business ventures, and family inheritance. However, when multiple people own real estate together, conflicts over how to manage, sell, or use the property can arise. When this happens, a partition action may be an option. Anyone who co-owns real property can file a petition for a partition action. This legal process forces the sale or division of the jointly owned property. A partition action allows the courts to decide how the property should be divided or sold. However, while partition actions can offer several benefits, they come with potential drawbacks. It is crucial to weigh both the pros and cons of real estate partition actions before making any decision. Below is a look at the pros and cons of real estate partition actions.
The following are some of the pros of real estate partition actions;
One of the main advantages of a real estate partition action is that it is ideal when co-owners cannot agree on how to manage, use, or sell a property. A partition action offers a clear legal path to resolve conflicts. When real estate co-owners disagree, a partition action allows them to turn to the court and seek a fair resolution. A partition action can help avoid prolonged disagreements and allow each person to move on with their life.
Partition actions ensure a fair distribution of property or sale proceeds, ensuring that the rights of all co-owners are protected based on their ownership percentage. This legal process ensures each person gets just their portion, offering equitable resolution and preventing some individuals from unfairly benefiting at others’ expense.
Real estate partition actions can be tailored to the specific circumstance and property. This process has different options, such as partition in kind (physically dividing the property) and partition by sale (selling the property and dividing the proceeds among the co-owners).
Cons of real estate partition actions include the following;
Some real estate partition actions can be lengthy. Depending on the complexity of the case and the level of conflict, it can take months or even years to resolve a partition action.
The costs for initiating and navigating a real estate partition suit can add up quickly, especially when the level of conflict is high. Attorney, filing, court, and appraisal fees can make a real estate partition action quite costly.
One of the main disadvantages of real estate partition actions is the unpredictable outcome. The court makes the final decision, and the decision may not align with what all the co-owners want. For example, a co-owner may wish to keep the property, but the court may order a partition by sale instead for various reasons, such as local zoning laws.
If you are dealing with a real estate co-ownership dispute and need legal help, contact our qualified San Francisco real estate attorneys at SAC Attorneys LLP.