When more than one person owns a piece of real estate, disputes are bound to arise. They might be as small as deciding how to renovate a space, or as big as a full-blown fight over who pays for maintenance more than their share.
If you’re facing the same, it’s better to seek legal advice to manage co-ownership disputes and navigate partition actions effectively.
1. Understand the Type of Co-ownership
Your exact legal rights depend on the type of property co-ownership. In a joint tenancy, everyone has equal ownership and rights. If any co-owner passes away, the ownership and rights are passed on to the surviving co-owners.
If it’s a tenancy in common, each co-owner might have a distinct share of the property. These shares can be sold, transferred, or inherited independently. Surviving owners don’t automatically get the shares of a deceased owner.
Before entering into a co-ownership dispute, have a clear idea about your rights and any additional agreement rules. This will help you avoid making mistakes.
2. Know the Partition Types
In Los Angeles, California, a partition can be done in different ways.
Partition in kind divides the property physically among the co-owners according to their shares. It’s common for huge undeveloped lands.
Partition by sale is a court-ordered sale of property, with co-owners receiving proceeds in proportion to their respective shares. This is the case for houses, commercial units, and condominiums.
Another option is a partition by appraisal, in which one or more co-owners buy out the share of the co-owner who wants to sell. However, it needs all co-owners to agree to this, which isn’t a common scenario.
Physical division is not practical in most cases and even lowers property value. Partition by sale is the most common option. So, expect the second kind if you’re thinking of appealing to the court.
3. Document Everything
In co-ownership disputes and partition actions, the greatest difficulty is the share of the money paid on the property.
Who paid for mortgage, improvements, insurance, taxes, or utilities has a crucial impact on the final case results and what you get paid. If you owe anyone any money, list that as well. Being honest from the get-go can include the case ruling in your favor.
Co-owners who have paid for these get more for their share, whereas those who have paid but can’t show proof are at a disadvantage.
So, before considering any legal action, collect detailed records of every payment and investment. If you’re uncertain, seek help from a property attorney Los Angeles. They know all the nitty-gritty about partition actions and local property laws, and can guide you on the exact documents required. If anything is unavailable, they can even use resources to help you. An experienced attorney will offer you an advantage in the case.
4. Consider Alternatives Before Litigation
Most people assume that court litigation is the easier way out, but that’s far from the reality! Attorney fees, court filing costs, property appraisals, and court-ordered sale/auction make the process expensive. Further, it also consumes your time and takes a toll on your health. So, consider other options and consider litigation as the last resort.
The most common option is direct negotiation. In this, you formally communicate with your attorney to propose a sale or buyout.
Another option is mediation. Here, a neutral third party conducts a discussion to identify the best mutually acceptable decision about the property splitting. The mediator prevents heated, emotional arguments and ensures the discussion stays on track.
Arbitration is also a choice if mentioned in the co-ownership agreement. Here, an arbitrator makes a binding decision after considering the overall scenario.
Consider litigation only if none of the alternatives work.
5. Take Preventive Measures
Often, co-ownership disputes result from a lack of co-ownership agreements. So, if you want to keep ambiguity out of the equation, draft a clear agreement with the help of an attorney.
In this, include all significant information like shares of expenses, the method of making decisions, whose words will have more weightage, and rules regarding rental income and occupancy.
Discuss and incorporate potential buyout options when either of the co-owners wants to exit, and the most favored dispute resolution tactic.
6. Identify Potential Issues
Generally, the causes of co-ownership disputes and partition actions are common. It can be burdensome and uneven financial contributions, property usage disagreements, a broken relationship among co-owners, a property with multiple heirs, or poor communication among everyone.
If you identify the issue ahead of time, you can manage the dispute without any additional chaos.
Closing Thoughts
With the right partition attorney, you can manage your co-owned real estate better, resolve disputes faster, and even get a fair result in litigation. So, connect with a team of reliable professionals and make wiser choices.
