Introduction to Real Estate Partition Actions in California

A partition action is a legal proceeding that allows a co-owner of real property to force the sale of the property, or the division of the property among co-owners. In a partition by sale, the property is sold in a forced sale and the proceeds distributed to the co-owners based on their fractional interests after paying the costs of partition and any liens. In a partition by division, the property is divided and each co-owner receives a portion of the property. The vast majority of partition actions result in a partition by sale or a settlement; very few result in a partition by division.

Partition actions often are filed when one co-owner wishes to sell the property but other co-owners do not.  Sometimes partition actions are filed even when all co-owners wish to sell the property but there is a dispute among the co-owners regarding the sale process or the operation of the property pending the sale.

Partition actions generally arise when property is held in joint tenancy or tenancy in common. However, absent a waiver by the parties, a court has discretion to allow partition of partnership property[1] and partition of so-called successive estates, which include life estates, estates for years and remainder interests[2].

To initiate a partition action in California, a co-owner must file a lawsuit in the appropriate court and name all other co-owners as defendants. The court will then determine whether partition is appropriate, and if so, will order the sale or division of the property. In many cases, the court will appoint a referee to advise the court on matters relevant to the partition, such as the status and priority of liens on the property and whether partition should be by sale or division. Often, a referee is hired to carry out the division or sale of the property.

Certain partition actions filed after January 1, 2023 are subject to a new California law called the Partition of Real Property Act (the “PRPA”)[3]. The PRPA applies only to real property held in tenancy in common where there is no binding written agreement governing partition of the property. Most importantly, the PRPA makes it far easier for a co-owner to avoid a forced sale of his or her interest by buying out the co-owner filing the partition action. Under the PRPA, the court must determine the market value of the property, in most cases by appraisal.[4] If any co-owner requested a forced sale of the property (the “Requesting Co-Owner”), then once the market value of the property is determined, any co-owner other than the Requesting Co-Owner may buy the interests of the Requesting Co-Owner at a price equal to the market value of the entire property multiplied by the Requesting Co-Owner’s fractional ownership of the entire property.[5]

In short, a partition action enables a co-owner to end the co-ownership relationship, much like a married couple getting a divorce. The usual result of a partition action is a sale of all or a portion of the property, either by a court ordered sale or through settlement. Under the PRPA, in certain partition actions, a co-owner who is not seeking a forced sale will now have the right to buy out the co-owner seeking a forced sale at market value.

For additional information, call our partition attorneys at (310) 656-8000.

[1] Cal. Code of Civil Proc. §872.730.

[2] Cal. Code of Civil Proc. §872.710(c).

[3] Cal. Code of Civil Proc. §874.311 – 874.323.

[4] Cal. Code of Civil Proc. §874.316.

[5] Cal. Code of Civil Proc. §874.317.