Owning real estate is a major commitment. People have to make routine payments toward a mortgage. Even if they own the property outright, they need to set aside funds for annual insurance premiums and property taxes. They have to ensure that they maintain the property in a safe condition.
Handling all of that alone can be nearly impossible. Many people become homeowners or acquire investment properties with co-owners. They buy with spouses, friends, business partners or siblings. Sometimes, people even inherit property from a parent or grandparent.
Co-owning property requires the sharing of responsibilities, but it also means the sharing of decision-making authority. When co-owners don’t agree about what should happen with real property or how to divide responsibilities, major disputes can arise. A partition action is a legal means of addressing disputes between co-owners. What solutions can civil court judges offer when hearing a partition action?
1. Splitting the property
In cases involving farmland, unimproved investment properties or land with multiple buildings on it, it may be possible to divide a single piece of real estate into multiple separate holdings. Partition actions can lead to a judge literally partitioning the property in question.
Each co-owner can receive a portion of the property after the judge divides it. Such arrangements can be beneficial in cases involving disputes between co-owners regarding the use of the property or responsibility for maintenance.
2. Arranging for a buyout
Sometimes, the simplest solution in a partition action is for one owner to buy out another or for a group of owners to buy out one party who no longer wishes to bear the responsibility of property ownership. A judge can help set the terms for such transactions to ensure that the process is as fair and reasonable as possible.
3. Facilitating the sale of the property
Sometimes, it isn’t feasible for one owner to buy out the other. It may also not be possible to split the real estate into two parcels, especially if the value comes primarily from improvements such as residential buildings rather than acreage. A judge can order the sale of real property so that each of the co-owners can receive a portion of its value in the resulting transaction.
A property owner filing for a partition action may be able to request specific relief from a judge. Developing a strategy when addressing a real estate dispute related to joint ownership can help people preserve their financial stability and minimize future hardships related to joint ownership of real estate.