Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When two or more people own a property as co-owners in California, each holds an equal undivided interest. To sell the property, co-owners must agree on selecting a real estate agent. If they cannot agree, one co-owner may seek a court-ordered partition sale under Code Civ. Proc. § 872, but cooperation is faster and less costly.
1. Establish Clear Communication
Schedule a meeting (in person or virtual) to discuss goals, timelines and marketing plans. Clarify budget, expected sale price and ideal closing date before interviewing agents.
2. Define Selection Criteria
Create a list of key factors such as:
- Local market experience
- Average days on market and sale-to-list price ratio
- Marketing strategy (online, open houses, professional photos)
- Commission rate and fee structure
3. Interview Multiple Agents
Meet with at least three licensed California brokers. Compare their track records. Ask for references and recent comparable sales.
4. Use an Objective Scoring Method
Assign weights to each criterion and score each candidate. Sharing the scoring sheet helps maintain transparency and minimize disputes.
5. Document the Decision
Once co-owners agree, draft a brief internal memorandum confirming the chosen agent and agreed terms. This reduces misunderstandings.
6. Execute a Written Listing Agreement
California law requires key real estate agreements to be in writing under the Statute of Frauds (Civ. Code § 1624). Sign the listing agreement together, ensuring it names all co-owners and the broker.
Helpful Hints
- Keep meeting notes and email trails for transparency.
- Verify each agent’s license at the California Department of Real Estate (DRE).
- Agree on a realistic commission rate; negotiate if needed.
- Consider including an exit clause if the agent underperforms.
- If disagreements persist, engage a neutral mediator before considering a partition action.