Articles Posted in Partition Action

672023-300x300Partitions sales and divorce sales are two different ways that a property can be sold.  One difference between the two is that in a partition sale, the court usually decides the proportion of ownership and how the proceeds are distributed among the owners, while in a divorce sale, the court generally must divide the property equally. Another difference is that the divorce sale process is similar to a normal real estate sale. Both sales can be determined informally among the parties or ordered by a court.   

The Partitions Sale Process

Usually, partition sales are ordered by a court. This is because partition lawsuits are often brought before courts by a property owner who wants to force a sale if the parties cannot come to an agreement. Read more about partition actions generally here

692023-300x300California Code of Civil Procedure section 872.020 is under Title 10.5 Partition of Real and Personal Property. This statute details the scope, or in other words, the actions of partition that the title controls. The statute aims to clarify the property to which Partition Law actions may apply. 

Code of Civil Procedure section 872.020 states 

This title governs actions for partition of real property and, except to the extent not applicable, actions for partition of personal property. 

662023-1-300x300The Underwood Law Firm, which is a boutique partition firm, has offices in Sacramento, Oakland, and Newport Beach 

SACRAMENTO, Calif. (June 1, 2023) — Eli Underwood, one of California’s leading experts in partition actions, has been named to the California Lawyers Association’s Real Property Law Section Executive Committee to begin on September 24, 2023. 

Mr. Underwood’s practice focuses on partition actions, which is a legal option available for people who own real estate jointly with others and want a clean break. Essentially, it allows one party to fairly solve joint co-ownership problems through the legal system. He is the founder of Underwood Law Firm, a boutique law firm with a proven success and multiple offices throughout the State of California. 

622023-300x300Partitions sales and trustee sales are two different ways that a property can be sold. A main difference between the two is that a partition sale is ordered and overseen by the court, while a trustee sale is overseen by a third party in relation to foreclosure proceedings. While the third party is not beholden to a court ruling in a trustee sale, they must still follow the procedures outlined in California law. 

The Partitions Sale Process

Usually, partition sales are ordered by a court. This is because partition lawsuits are often brought before courts by a property owner who wants to force a sale if the parties cannot come to an agreement. Read more about partition actions generally here

5312023-300x300The California Partition Law begins in Code of Civil Procedure section 872.010 with definitions. These definitions apply throughout the entirety of the Partition Law, which ends only in Code of Civil Procedure section 874.323. The point of this statute is to provide uniformity throughout the Partition Law and reduce any uncertainty about the meaning of any terms so that the law may be applied without any debt. 

Code of Civil Procedure section 872.010 states 

As used in this title: 

5262023-300x300There are several provisions in real property sale agreements that can affect a party’s legal rights. One such provision is an “as-is” provision, which is often included in contracts for the sale of real property. It is important for parties to keep on the lookout for such provisions so that they are aware of their legal rights in any possible litigation. 

What Does an “As-is” Provision Mean for Buyers? 

Generally, when a property is sold “as-is,” the seller is not liable for defects in the property unless the seller is fraudulently concealing or misrepresenting the property’s condition. (Shapiro v. Hu, 188 Cal.App.3d 324, 334.) When purchasing the property “as-is”, the buyer accepts the condition of the property to the extent that he or she can visibly observe. The buyer cannot later sue the seller for a defect that the buyer observed. 

5242023-300x300There are two common ways an individual can own property: (1) as a tenant in common or (2) as a joint tenant. In California, there is a presumption that the co-owners of a piece of property are tenants in common unless the deed expressly states that the co-owners are joint tenants. 

In a joint tenancy, there is a right of survivorship, meaning that when one joint tenant dies, the surviving joint tenant inherits the other joint tenant’s interest in the property. There is no right of survivorship in a tenancy in common. In certain circumstances, different rules or laws apply when a property is held in a joint tenancy versus a tenancy in common. For example, there are certain laws for property taxes that apply for a tenancy in common that is different from a joint tenancy. 

At the Underwood Law Firm, our attorneys are more than familiar with property taxes and the requirements that follow. This area of law can be complex and entangled in technicalities. Our attorneys are here to walk you through the law step-by-step so that you are not lost in the maze of rules and regulations and to get the best possible results from transferring your property ownership. 

5192023-300x300In every property co-owned by two or more persons, there are common costs. Common costs are those costs for the property that are common to all owners or for the common benefit of all owners. In California, cotenants are required to pay for their portion of the common costs. Therefore, cotenants must pay for their share of expenses to operate and maintain the property. The portion of common costs one must pay depends on the ownership interest of that cotenant. 

At the Underwood Law Firm, our attorneys are more than familiar with co-ownership and the requirements that follow. 

What are Common Expenses?

5172023-300x300Lawsuits that affect interests in real property, such as partition actions, often require courts to adjudicate competing claims regarding who should have title to or possession of real property. In general, courts adjudicating such disputes follow the principle of “first in time, first in right.” Under this principle, “a conveyance recorded first generally has priority over any later-recorded conveyance.” (First Bank v. East West Bank (2011) 199 Cal.App.4th 1309, 1313.) 

An important factor that courts consider when adjudicating cases affecting interests in property is whether each party affected by the court’s judgment had notice of the litigation or judgment. A judgment affecting title to or possession of real property that is recorded imparts “constructive” notice to a subsequent transferee or encumbrancer. When recorded, such judgment is effective against any subsequent conveyance or encumbrance, regardless of whether the parties to that judgment receive notice about the subsequent conveyance or encumbrance. (Civ. Code, § 1214.) 

In contrast, a judgment that is not recorded with the recorder’s office of the county in which a property is located does not impart constructive notice to subsequent transferees or encumbrancers of the property. Any such judgment generally is not binding on a subsequent transferee or encumbrancer who acquires and records an interest in the property without notice of the prior litigation or judgment. (Civ. Code, § 1214.) 

5122023-300x300“A trust is any arrangement which exists whereby property is transferred with an intention that it be held and administered by the transferee for the benefit of another.” (Higgins v. Higgins (2017) 11 Cal.App.5th 648, 662.) Essentially, a trust is a legal relationship that allows a person to hold property for the benefit of another person. 

In a trust relationship, there are typically three main people involved: (1) the settlor; (2) the trustee; and (3) the beneficiary. The settlor is the person that creates the trust and transfers the property he/she owns in the trust to be held by the trustee. The trustee is the person that administers the trust. The trustee holds legal title to the property transferred into the trust by the settlor and acts as a fiduciary to the beneficiary to protect the assets in the trust. The beneficiary holds equitable title to the trust property and is the person that benefits from the property in the trust. In some cases, the settlor and the trustee are the same person. 

In sum, a trust is a fiduciary relationship where property is transferred by one person to another on behalf of a third party. At the Underwood Law Firm, our attorneys are more than familiar with trusts and the requirements that follow. 

Contact Information