Disagreements can arise when co-owners have different plans for a property. If one tenant in common (TIC) wants to sell but another wants to keep the property, California law generally allows the owner seeking an exit to pursue partition. The court may resolve the dispute by dividing the property or, when appropriate, directing a sale. The outcome can depend on the property, any agreement between the owners and the circumstances of the dispute.
What is a partition action?
A partition case does not always end with the property being sold. Depending on the circumstances, the court may determine that the owners should receive separate interests in the property or that another resolution is appropriate. California’s Partition of Real Property Act sets out the rules that govern these proceedings.
The type of partition can determine whether the property remains divided among the owners or is sold entirely. The court considers the circumstances when determining the appropriate method of partition.
When might a court order a sale?
Some properties are not suited to being divided between the owners. For example, turning a single-family home into separate parcels may not be feasible or practical. A court will consider whether dividing the property is workable for all parties. When a physical division would create significant problems, selling the property may provide a more practical solution.
When a sale is ordered, the resulting funds are apportioned among the owners based on their respective interests. In some circumstances, a co-owner may also have an opportunity to buy the interests of the owners who requested a sale before the property itself is sold.
What should co-owners consider?
A TIC agreement can affect how a dispute is handled. Co-owners should review any agreement that addresses partition, a sale or a buyout before taking action. The property’s value, each owner’s share and the available options can also affect the outcome.
If the owners remain unable to agree, either party may ask the court to resolve the ownership dispute through partition. The rules can vary based on the property’s ownership structure and the agreements between the co-owners. Knowing those options can help co-owners decide what steps make sense for their situation.