Partition action is a real estate lawsuit one of the owner decides to separate from his fellow co-owners form a real estate. Real estate is a huge market and it is rarely possible for one person to own huge part of a real estate. so real estate can be held by more than one owner when kept in joint tenancy, tenancy in common or by tenant in the entirety. It is made clear that each one has full control over the whole real estate, one of the co-owners cannot take control of a specified part of the real estate all the land is under all the CO owners and id a decision about the real estate is to be made, then all the co-owners must adhere with that.
When there is dispute among the co-owners, or an owner thinks that he is being violated of his right over the real estate, then he files for a partition lawsuit. Equal splitting of real estate is done in joint tenancy whereas the shares are split according to percent ownership in tenant in common. Partition lawsuit can be filled both voluntarily or by court order. In voluntarily, all the co-owners come up with an agreement of the partition and make the partition peaceful. On the other hand, in court order, the co-owners come to know about the partition via court and they have the right to make a defense case against the splitting of real estate.
Partition lawsuit is divided into two types.
- Actual partition:
In this type of partition, the real estate is literally split and divided between the co-owners for them to use, improve or dispose of as they may desire. This is very easy when the real estate is such kind which can be split into blocks or parts very easily and the co-owners get their part according to their initial investment. The co-owners are also in general agreement and the lawsuit in somewhat peaceful.
- Partition by licitation or succession:
This involves selling the real estate and then distributing the capital to the owners according to their initial investment. This is best when their is a dispute between the co-owners or the real estate is of such of which cannot be divided easily.
It is not necessary for the court to step in and solve the partition lawsuit. The parties via their attorneys can decide the fate of the real estate even after a lawsuit is filed. It is necessary for the counsel to draft a binding settlement agreement to ensure peace between the co-owners after the partition. It is also possible that one of the co-owners pays the full amount of the real estate, if he is financially capable, and take full control over the real estate. In this case, a new deed has to be prepared by the counsel which shows the change of ownership.
Real estate partition lawsuit has it pros and cons,
- If there’s a dispute between the co-owners, then it is beneficial.
- If one of the owners has spent major cost for the renovations, then there is a possibility that the amount can be reimbursed.
- Quite expensive
- Time taking process
- Property losses it’s value.