Can Siblings Force the Sale of Inherited Property?
Yes. In California siblings can force the sale of inherited property through a partition action. Partition actions allow siblings who co-own inherited property to request a court-ordered sale of property when it cannot be physically divided or the siblings cannot reach an agreement on the property’s management and disposal. Allowing siblings to force the sale of inherited property through partitions ensures co-owners can fairly resolve disputes while properly protecting their individual ownership interests.
Co-Owners’ Right to Partition
Partition is the legal process through which co-owners of property divide their interests. Division is typically done using either a Partition in Kind or Partition by Sale. A partition in kind is the process of physically diving the property between co-owners. Partition by sale results in selling the property and dividing the sale proceeds among co-owners.
Courts determine the manner of partition based on the circumstances and equitable interests of the parties. (Code Civ. Proc., § 872.820; Summers v. Superior Court, (2018) 24 Cal.App.5th 138.) Courts may also appoint a referee to oversee the partition process and are required to appoint referees when appointment is necessary, desirable, or helpful to facilitate the partition process. (Code Civ. Proc., § 873.510; Richmond v. Dofflemyer, (1980) 105 Cal.App.3d 745.) Referees are responsible for investigating the property, recommending how the property should be divided or sold to the court, and executing the court’s orders regarding the partition. (Ibid.)
The Right to Partition is an absolute right of co-owners, meaning co-owners can demand partition without needing to provide a reason, however, the right to partition can be waived. (De Roulet v. Mitchel, (1945) 70 Cal.App.2d 120.) Accordingly, courts must grant partitions if all legal requirements are met, regardless of the motives behind the request. (Thomas v. Witte, (1963) 214 Cal.App.2d 322.)
Can Siblings Force the Sale of Inherited Property?
Under California’s Partition of Real Property Act (“PRPA”), siblings can force the sale of inherited property through partition actions. (Code Civ. Proc., § 874.316.) The act provides all co-owners of inherited property the right to sell their individual shares of property or buy out another co-owner’s shares; functionally, this is a right of first refusal. (Code Civ. Proc., § 874.317.)
The PRPA mandates a partition action when co-owners are unable to buy out the party seeking the partition. In the context of siblings forcing the sale of inherited property, the PRPA allows them the opportunity to agree on the method used to divide the property, however, the court will decide the most equitable method of partition if they cannot agree. (Code Civ. Proc., § 872.210; Cummings v. Dessel, (2017) 13 Cal.App.5th 589.)
How to Start the Sale of Forced Property?
Under the PRPA, siblings can initiate the partition process for inherited property by filing a partition action with the court. Partition actions can be commenced by any co-owner of real property held in tenancy in common. (Code Civ. Proc., § 872.210.)
California law generally favors partitions in kind because physically dividing the property among co-owners avoids disrupting the existing form of inheritance and compelling a co-owner to sell their property against their will. (Richmond v. Dofflemyer, 105 Cal.App.3d at 757.) As such, when parties contest the type of partition to be used, the burden of proof is on the party seeking partition by sale to prove partition in kind is improper under the circumstances. (Ibid.)
Still, partition by sale is used when partition in kind is impractical or would result in great prejudice to the owners, including circumstances where the relationship between co-owners has severely deteriorated. (Cummings v. Dessel, 13 Cal.App.5th at 598; LEG Investments v. Boxler, (2010) 183 Cal.App.4th 484.)
Can I Prevent the Sale of Forced Property?
Once a partition action commences, it is incredibly difficult to stop the forced sale of property. Co-owners may, however, prevent the forced sale before partition actions commence by reaching an agreement among heirs, settlements, or enforcing pre-existing contractual obligations.
If heirs can agree on how to handle the property, they can avoid a forced sale. For example, in In re Estate of Canfield, the heirs all agreed they wanted to sell the property, but none wished to take the property at its appraised value. ((1951) 107 Cal.App.2d 682.) Accordingly, the court recommended the executrix petition for partition or for the property’s sale emphasizing partition is the proper remedy when it can be accomplished without inflicting great prejudice on the owners. (Ibid.)
Settlement agreements prevent the forced sale of property when they outline how the property should be handled. Specifically, settlement agreements may allow siblings to sell the property if they all agree to the sale, while simultaneously preserving the right to file a partition action if they do not all agree to the sale. (Orien v. Lutz, (2017) 16 Cal.App.5th 957.) When settlement agrees contain terms like these, they can be used to prevent forced sale by complying with their written terms.
Pre-existing contractual obligations that modify the right to partition must be honored. These agreements can either modify the right by requiring one heir to offer their interest to the co-owners before selling it to third-parties or waive the right to partition completely. (Schwartz v. Shapiro, (1964) 229 Cal.App.2d 238.) Because the right to partition can be waived either expressly or impliedly, partition should be denied when it would be unfair to co-owners or when pre-existing agreements limit the right to partition. (American Medical International, Inc. v. Feller, (1976) 59 Cal.App.3d 1008.)
Overall, California law does not provide an explicit way to prevent forced sale once partition actions have commenced because of the absolute right to partition. Thus, while it isn’t impossible it is uncommon, and co-owners should strive to reach an agreement before a partition petition is filed.
What is an Example?
For example, “Shawn” and “Julie” inherited their family home in Southern California. After their parents’ death, the home was placed in a family trust and Shawn and Julie were named as trustees and beneficiaries of the trust. Shawn wants to sell the property because he believes that since no one lives in the house, splitting the proceedings is better than paying the expensive property maintenance costs. Shawn has no emotional attachment to the property and sees no reason to keep it because of its financial burdens. Julie wants to keep the property in the family for sentimental reasons and is confident the property value will increase steadily over time, but Julie cannot afford to buy out Shawn’s ownership interest and keep the property herself.
Shawn refuses to consider keeping the property and files a partition action, arguing him and Julie cannot agree on what to do with their inherited family home. No agreement limits or waives either Shawn or Julie’s right to partition the property. Therefore, assuming Shawn establishes all the legal requirements, the court will order a partition by sale and split the proceeds between the siblings according to their ownership shares because Shawn and Julie cannot agree on what to do with the property.
Conclusion
Siblings who inherit property are immediately faced with financial considerations, emotional attachment, and the practicalities of property ownership. Together, these factors can frustrate the decision-making process and communication leading to sibling disputes. If sale or disposal of property is a point of contention in these relationships, partition may be a solution. Understanding the absolute right to partition is important whether co-owners are siblings, or merely business partners, who co-own property. At Underwood Law, our partition attorneys can help you navigate your partition action efficiently and with care. We are here to help.