5 Common Myths About Partition Actions You Shouldn’t Believe

When two or more people jointly own a property, they may all wish to keep it to gain profits by investing in it, or a co-owner might wish to sell it off for personal or financial reasons. 

According to statistics, co-buyers account for 26.7% of all home purchases in the US. When there’s a dispute arising due to property ownership, one of the co-owners can file for a partition lawsuit. 

However, many homeowners don’t know all the laws surrounding partition actions, which complicates legal procedures further. So, let’s bust a few partition action myths!

Myth 1: Inherited Property cannot come under the Partition Laws

This is one of the most common misunderstandings that can happen with inherited properties. Inherited property can fall under partition laws, especially under probate, when there are disputes regarding property handling. 

If the beneficiaries don’t want to jointly own the property, a partition action can be brought about to force the sale of the property. 

For example, if the will or trust leaves a property to more than one beneficiary, the parties that want to terminate their interest in the property can ask for a partition action to force the sale of the property. 

Again, if the ancestor had owned only a share of the entire property, their beneficiaries would also inherit only that share of the property after the owner’s death.

Myth 2: Partition Action is the Only Way Out

The Partition Act states that even after it has been implemented, the co-owners can reach an agreement among themselves at any time they want. 

However, if you’re based in LA, speak to a reputable property attorney Los Angeles who’s well-versed with local laws. They will share different ways to avoid the partition action right from the beginning. 

For example, if there’s a clear ownership agreement where each co-owner’s rights, responsibilities, and duties are outlined carefully, it can significantly reduce the unnecessary cost and effort associated with partition actions. 

It’s also important for all co-owners to get together and discuss what each one wants to do with the property to avoid misunderstandings and legal disputes.

Myth 3: Realtors and Estate Agents cannot be a Partition Referee

In November 2022, the Court of Appeal stated that a realtor who acts as a partition referee and helps out co-owners by resolving disputes is entitled to a type of judicial immunity under a popular case called “Holt vs. Brock (2022)”. 

A court had appointed a realtor to be the partition referee, but one of the parties had claimed that the realtor had tried unlawful methods to resolve the dispute. 

The court had ruled in favor of the realtor, after which it was ruled that realtors cannot be sued for illegal or unlawful methods when they act as partition referees. This is ruled under the quasi-judicial immunity. 

Judicial immunity also bars civil actions against any judge for their acts during their judicial functions, which gives them quasi-judicial immunity.

Myth 4: Partition Action Laws are Limited to Specific Co-ownership

In California, for example, a partition action lawsuit means the real estate property has to be sold irrespective of the requests given by other co-owners. 

This is because a partition action has been established to permanently end all kinds of legal, financial, and other disputes among co-owners. 

Moreover, implementing partition law ensures that all co-owners can freely enjoy their share of the property or decide what they want to do with it. 

These actions can be implemented in any type of real estate, from office spaces and buildings to farms and residential houses. 

Similarly, partition actions are also applicable to all types of ownership situations, such as joint tenants, tenants-in-common, and even property owned by former partners or spouses.

Myth 5: Partition Actions are Quick and Simple

Partition actions take a long time, not to mention large amounts of money. Moreover, the entire legal process is very complicated, which means that all co-owners need to appear in court and have their perspectives clearly stated throughout the process. 

In fact, any partition actions can take years to resolve, especially if there are more than two or three co-owners of a large property. 

The case becomes even more complicated if one or more co-owners move to a different city or country, fall ill, or even pass away. 

This is why it’s important to get in touch with a skilled attorney who can help you navigate the litigation without taking up too much of your time, effort, or money.

Conclusion

Before you file for a partition action, it’s always best to consult a professional lawyer. They will not only help you win the case but will also remove any doubts or myths that may have been lingering in your mind. So, don’t wait any longer, and get in touch today!