Can a co-owner force the sale of real property in California? — Detailed FAQ
Disclaimer
This content is educational only and is not legal advice. Laws change and every situation is unique. Consult a licensed California attorney to get advice tailored to your facts.
Detailed Answer
If you own a house with two other co-owners and you cannot reach an agreement about what to do with the property, California law gives any co-owner the right to ask a court to partition the property. A partition action asks the superior court where the property is located to either divide the property among the owners (partition in kind) or sell it and divide the proceeds (partition by sale).
Who can file?
Any co-owner of the property—whether they hold title as tenants in common, joint tenants (with certain exceptions), or a mortgage/lienholder in some circumstances—may file a partition action. See California Code of Civil Procedure section 872.010 for who may maintain a partition action: CCP § 872.010.
Partition in kind vs. partition by sale
The court first considers whether the property can be fairly physically divided. If a fair physical division is practicable, the court may order partition in kind. If physical division would be impractical, wasteful, or would unfairly prejudice owners, the court may order a sale and division of the proceeds. The statutory framework governing when a sale may be ordered is found in the California Code of Civil Procedure; see in particular CCP § 873.010 and related sections: CCP § 873.010 and CCP § 873.020.
Typical court process
- File a complaint for partition in the superior court for the county where the property is located. The complaint must name all co-owners and interested parties (mortgagees, lienholders, tenants).
- Serve the other co-owners and claimants so they can respond.
- The court may require evidence of ownership interests (deeds, title, recording history), liens and encumbrances, and valuations.
- The court can appoint a referee, appraiser, or commissioner to value the property, make recommendations, and manage sale processes if the court orders a sale.
- If the court orders a sale, it will typically direct how the sale is conducted (public auction or private sale subject to court approval) and how proceeds are applied to liens, costs, and distribution among owners.
How proceeds and costs are handled
When the property is sold, outstanding mortgages and liens are paid first from the sale proceeds. Court costs and the costs of partition (appraisers, referees, sale costs, and sometimes attorneys’ fees if the court finds cause) are typically paid next. The remaining net proceeds are divided among owners according to their ownership shares. If one owner paid more than their share of expenses or holds a lien, the court will account for that in dividing proceeds.
Can an owner buy out the others?
Yes. Before a sale, owners frequently negotiate buyouts. One common approach is for one co-owner to pay the others their proportionate interests (often based on an agreed valuation or an independent appraisal) so the paying owner keeps the property. A court-ordered partition does not prevent voluntary buyouts; courts often encourage settlement before ordering a sale.
Timeline and costs
Partition actions can take months to over a year, depending on how contested the case is and court schedules. Costs may include filing fees, service fees, attorney fees, appraisals, referees/commissioners, and sale costs. Consider the financial and emotional cost of litigation versus negotiation or mediation.
Practical risks
- Forced sales sometimes fetch below-market prices, especially at auctions.
- Mortgage lenders may still enforce existing mortgages; the sale proceeds usually must satisfy those debts first.
- Tax consequences (capital gains, basis adjustments) can apply—consult a tax professional.
Helpful Hints
- Collect documentation: deed(s), title report, mortgage statements, property tax records, insurance, and records of improvements and payments.
- Get a professional appraisal before filing or negotiating—knowing market value helps in buyout talks or at trial.
- Try negotiation or mediation first. Courts often expect parties to attempt settlement, and mediation can be far cheaper and faster than litigation.
- Consider a buyout calculation: determine each owner’s percentage interest, subtract liens and unpaid expenses, and offer a cash payment for the others’ shares.
- Ask whether a partition in kind is realistic—sometimes a lot can be physically divided, sometimes not. A surveyor’s input can help.
- Talk to a California real estate attorney early. They can explain local court practices, cost estimates, and likely outcomes in your county’s superior court.
- Be prepared that litigation outcomes are not guaranteed. Courts balance practicality and fairness when ordering division or sale under California’s partition statutes: see CCP § 873.010 et seq.: CCP § 873.010.