When real estate is inherited from family members, the property is often placed in the hands of multiple owners. Additionally, it is increasingly more common in the Bay Area for buyers to buy a property together with other people - family members, roommates, friends - to make it more affordable. Being a co-owner for a property offers many benefits, but sometimes disagreements arise between co-owners that affect the future of the property. Any co-owner can exit a co-ownership arrangement through a process called partition. In a partition action, the property can be divided, bought out, or — more commonly — sold, and there isn't much the other owners can do to stop the process. To better understand what partition actions are and how the process of severing a co-ownership arrangement is performed, the Law Offices of Peter N. Brewer presented a free webinar about the basics of partition actions in California. On Tuesday January 23rd, real estate attorney Ashlee D. Adkins gave an overview of partition actions, and how property co-ownership arrangements can be severed. REALTORS® will be able to better inform their clients about co-ownership of property. Homeowners and real estate buyers will learn the types of options they have if they decide to purchase a property with other people, while real estate investors will understand how they can protect their partial interest in a co-owned property. On Tuesday, January 23rd, attorney Ashlee D. Adkins presented a webinar about the basics of partition actions in California, discussing important topics such as: Elements of Co-Ownership Types of Partition Actions Reasons Leading to Partition Process for Filing Partition Actions Balancing Competing Interests in the Court Using a Referee in Partition Determining Equitable Outcomes and more!

2. DISCLAIMER
You agree, by participating in this webinar, that
the information presented does not constitute
legal advice and is being presented for
informational purposes only. You agree that no
attorney-client relationship is established or
assumed by participating in this webinar and that
the information or suggestions presented in this
broad overview may not apply to your specific
circumstances.

4. PLACEHOLDER
BASICS OF CO-OWNERSHIP

5. BASICS OF PROPERTY
CO-OWNERSHIP
HOW BECOME A CO-OWNER
• Inheritance
• Bought Property Together
LISTED ON MOST RECENT DEED

6. RIGHTS OF CO-OWNERS
PROPERTY RIGHTS
• Right to Possession & Use
• Right to Collect Rents
• Right to Force Sale
• Unless Right Waived for Certain Period of Time (Inheritance)
• Unless Held as Community Property (Handled in Divorce Court)

7. PLACEHOLDER
WHAT ARE PARTITION
ACTIONS

8. PARTITION ACTIONS
WHO CAN SEEK
• Any Co-Owner, Regardless of Proportional Share
(CCP 872.210(a)(2))
JURISDICTION FOR LAWSUIT
• Superior Civil Court in County Where Property
Located

9. METHODS OF PARTITION
PARTITION IN KIND (Physically Divide Land) CCP 873.210
PARTITION BY APPRAISAL (Buyout) CCP 873.910
• Requires Agreement, Cannot Force
• Appraisal is acquired and buyout is based on
appraisal value
PARTITION BY SALE (Force Sale) CCP 873.520
• Proceeds divided by proportional interest

10. REASONS FOR PARTITION
COMMON SITUATIONS
• Occupation by One Co-Owner
• Relief from Mortgage
• Failure to Maintain
• Relief from Management
TIP:
Partition actions often involve
a co-owner that is being
difficult. ALL partition actions
require a lawsuit.

11. EXAMPLE SCENARIO
INHERITED PROPERTY
• Property inherited by beneficiaries (usually
multiple children)
• One of the children won’t agree on use of
property and would rather have cash, they file
suit for partition
• Other siblings have no defense and property is
sold and proceeds are divided

12. PLACEHOLDER
FILING A PARTITION
ACTION

13. DETERMINE WHO IS ON TITLE
OBTAIN LITIGATION GUARANTEE
• Verify Ownership with Title Company
• Who’s On Title At That Moment
• Serves as Insurance Policy
• Court may inevitably require guarantee, so
obtain before suit is filed

14. FILE SUPERIOR COURT
COMPLAINT
ELEMENTS OF COMPLAINT CCP 872.210
• Property Description
• Ownership Information (Who’s on Title)
• Litigation Guarantee comes in handy here
• How You Want Property Divided
• Explain which method you prefer TIP:
Court will determine the
method of partition, and will
evaluate whether property can
be divided

15. FILE SUPERIOR COURT
COMPLAINT
SERVE DEFENDANTS WITH COMPLAINT
• Personal Service
• Substitution Service
• CA Service of Process
LIS PENDENS
• Record Immediately
• Notice to World That Property in Litigation
Lis pendens prevents co-owner from
listing property, since title company
usually won’t issue insurance policy
for property in litigation

16. PLACEHOLDER
COURT DETERMINATIONS

17. ADR/MEDIATION
BEST METHOD TO RESOLUTION
• Prior to Trial, Court Requires Mediation
• Saves Costs of Trial
• Mediator Helps Party Agree On:
1. Who Owns What
2. Manner of Division (Kind, Sale, Appraisal)
3. Who To Appoint as Referee
JUDGE SIGNS STIPULATED INTERLOCUTORY JUDGMENT

18. IF NOT RESOLVED AT
MEDIATION
JUDGE DECIDES DURING TRIAL
• Percentage Ownership Interests
• Manner of Division
• Liens to Be Paid
• Encumbrances
• Appoint Referee
The judge will evaluate the
TOTALITY OF
CIRCUMSTANCES
based on equitable interest.

19. POSSIBLE DISPUTES
DISPUTE REASON FOR PARTITION
• Manner of Division
DISPUTE REFEREE
• Limited Effectiveness
DISPUTE OWNERSHIP
• Cross-Complaint Quiet Title
There is virtually no
defense that will stop a
partition action.

20. PLACEHOLDER
USING A REFERREE

21. PARTITION REFEREE
SELECTION
• Stipulated or Judge Picks
• Can be anyone except Clerk, Co-Owner, or
Associated with Judge
AUTHORITY OF REFEREE
• Fiduciary Duty to Both Parties
• Broad Powers
• Any Acts Necessary Under Judgment CCP 873.060

22. PARTITION REFEREE
SALE OF THE PROPERTY
• Referee can enter into listing agreements, sign
transaction documents, etc.
• Possible Eviction of Tenant, including Co-Owners
• Costs of Listing & Showing Property
• Sale Price
• REALTOR®
RESOLVING DISPUTES

23. PARTITION REFEREE
ATTORNEY FEES & ACCOUNTING
• Either Side Can Be Awarded Attorney Fees,
Based on Equity Lin v. Jeng (2012)
• Proceeds from Selling Property Cover Costs
REPORT BACK TO COURT
• Petition Court for Hearing
• Motion Confirming Sale – Judge Could Void