Jointly owned real estate can be a very valuable asset. But it can also cause some conflict. The owners may not see things in the same light. They may not have the same goals.
For example, say that two people inherit the same property from their parents. Perhaps it’s a vacation home or a commercial property. They become the new joint owners.
On one side, the first owner is delighted to have the property and wants to keep it. However, the other owner just sees it as a financial asset. They would like to sell the property as quickly as possible to get their money out of it. If they can’t agree, then what happens?
The role of the partition action
What sometimes has to happen is that the court can use a partition action to divide the property. They can split each person’s ownership interest. This way, both owners can do as they wish. The owner who wants to keep the property can still keep their 50% ownership, while the person who wants to sell is allowed to sell that property to a third party and get their money out of it.
This can still be complicated. If it’s just one lot, the original owner may then have to work with a new co-owner after the partition action and the sale. If there are multiple lots, the court may simply divide ownership, such as giving one lot to one owner and one to the other. But do both lots actually have the exact same financial value? How do you determine if this is a fair split of those real estate assets?
There are many questions like this to ask during complex real estate transactions and disputes. Those involved must be well aware of their legal options.
