In A Dispute With A Co-Owner Of Real Property? It Might Be Time For A Partition Action

Posted By Jorgensen, Brownell & Pepin, P.C.

9 Nov. 2016

It’s common for family members or investment partners to come upon times where they can’t agree upon proper use or management of real property. In situations where there is no possibility for a resolution, it may be appropriate to consider a partition action. Filing a partition action enables a process where a Court can equitably divide ownership interests in real property. There are two kinds of partition actions: a partition in kind, and a partition by sale.

A partition in kind is the process by which the court will actually divide the property into new and distinct segments of land. A partition in kind is only possible when the property can be divided equitably; each owner will eventually own exclusive title in a portion of the previous estate in accordance with his or her ownership interest in the previous estate. This process is accomplished through the appointment of a Commissioner, who will take an oath to fairly and impartially divide the property in accordance with the owners’ individual interests. The Commissioner will then submit the proposed division of property to the Court for approval.

If the Commissioner is unable to apportion and divide the real property without an interested party suffering prejudice as a result of the division, the Court may order that the property be sold at a public sale. After completing the public sale, the Court will equitably divide proceeds of the sale amongst the various owners. When distributing the proceeds, the Court will consider the value of the property, financial contributions from each owner toward the purchase and upkeep of the property, and the value of any loan or other encumbrance on the property. Each owner will eventually receive a percentage of proceeds that equates with his or her equitable interest in the property.

At the conclusion of a partition action, the Court will decide every issue and controversy concerning the property. Therefore, each owner can move forward with either proceeds from the sale of property or exclusive title in a portion of the previous estate.

If you are in a dispute with co-owners of real property, contact an attorney at Jorgensen, Brownell, & Pepin. Our attorneys can help you determine whether a partition action is appropriate for your unique situation. Get in touch with us today!

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