If multiple people jointly own a property and any co-owner wishes to terminate the joint agreement or disputes arise, either party can file for a partition lawsuit. According to statistics, co-ownership accounts for 26.7% of all home purchases in the US.
If you’re also planning to file a partition lawsuit to end co-ownership disputes, then here’s what you must know!
1.Partition Lawsuit
A partition lawsuit is the process of dividing any jointly held land or property into shares, where each party receives exclusive rights and titles according to their eligible share.
However, partition also refers to the redistribution of property among all the co-owners, which will lead to the termination of joint possession. This can be done among the property stakeholders, provided they have a valid and legal interest in the property.
For example, a person who has no bona fide interest in the property can’t participate in the partition lawsuit process or claim any share.
2.Quasi-Judicial Immunity
The Court of Appeal stated in November 2022 that a realtor who participates as a partition referee and assists the co-owners with resolving the dispute can enjoy a type of judicial immunity known as quasi-judicial immunity.
In a famous case, the court-appointed a realtor to act as a partition referee to sell the disputed property.
Later, one of the parties claimed that the realtor had used unlawful means and tried to sue the realtor. However, the court ruled in the realtor’s favor since they had acted as a partition referee.
This immunity applies to all types of judicial determinations, irrespective of how erroneous the means may be.
3.Market Value of Forced Sales
Most co-owners assume that filing a partition lawsuit fetches a good value of the property for everyone. In reality, partition sales often lead to disappointing payouts.
Courts mostly order properties to be sold in public auctions instead of a competitive real estate listing.
Buyers at auctions seek properties that will fetch them a good bargain. These people know that forced sales rarely allow for negotiations or proper staging. But these disputed properties sell much below their actual worth.
This is why maximizing profits should be your goal, which you can do by negotiating a private sale after talking to property lawyers San Diego if that’s your locality. They are knowledgeable in local property laws, which can give you an advantage.
4.Types of Property under Partition Laws
Before filing a lawsuit, see how the property is owned and by whom. This determines whether co-owners can file a partition case at all.
Since partition lawsuits are complicated and take a lot of time and money, it’s always a good idea to consult a professional real estate attorney on whether your property comes under partition laws.
For example, Massachusetts law states that you can partition any “present undivided legal estate in land.”
Usually, you can partition any property or land that is held by co-owners who have tenants in common or are joint tenants. However, if a property is held by a corporation or LLC, it cannot be partitioned.
5.Partition Case Commencement
The person seeking partition in the court of law is known as the “plaintiff” or “petitioner.” If you’re looking to move the court to ask for property partition, you’ll be the plaintiff, and you have to first file a complaint or petition for the partition.
You must use the form provided by the court for partition cases. This is readily available on the court’s website, but you can also ask your lawyer for one.
Typically, the complaint form includes a request for an alternative, such as a physical division of the property or its sale.
In the form, you name all the co-owners, who might be known as “defendants” or “respondents,” along with the interests they hold.
6.Partition Lawsuit Cost
The court filing fees for a partition lawsuit are listed on the court’s website. For example, in the Land Court, you’ll have to pay $240 to file a partition case, along with a $15 surcharge fee and a $5 fee for every summons to serve on the defendants in the case.
The court might also ask you to notify the other parties in the case through various methods, such as publishing a notice in the newspaper.
Here, there might also be additional costs associated with printing and publishing the notice. If you can’t pay the court filing fees and costs, you can have the state pay for them by applying for a waiver of court fees.
Conclusion
Since partition laws require a lot of time and money, it’s best to ask a credible property attorney for tips and tricks on how to win the case. So, start looking for one today!
