California Partition Law Blog

How do you sever a joint tenancy in California? (Code of Civil Procedure section 683.2)

Published on: August 10, 2022 | By Underwood Law Firm, P.C.

Underwood-Blog-Images-3-300x300 Joint tenancy is a special type of co-ownership recognized in California. It is commonly associated with married couples, ensuring that when one of them dies, their entire interest in the property passes to the other spouse. This is called the right of survivorship, and it is the defining trait of a joint tenancy.

The right of survivorship, however, can be an uncomfortable concept for co-owners, particularly when those owners are not related and are merely business partners. For that reason, co-owners can attempt to sever the joint tenancy to extinguish the right of survivorship.

The Underwood Law Firm, P.C. is familiar with all types of cotenancies, including joint tenancies, and the various means of severing them under the law.

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What is a Partition Action? (Code of Civil Procedure § 872.210)

Published on: August 8, 2022 | By Underwood Law Firm, P.C.

What is a Partition Action?

A partition action is a court-ordered process where a property owner forces a sale of jointly owned real estate. Essentially, a partition action exists to allow people who own real estate together to take their share of the equity and go their separate ways. But, as simple as this seems, partition actions can often become complex lawsuits. Disputes commonly arise as to what type of partition may be sought and the process for determining ownership interests.

For example, “Julie” bought a house with her boyfriend, “Shawn,” thinking that they would get married one day. Later, after they had bought the house, Julie realized that her boyfriend was not the right person for her. Because Julie wanted to move on in her life, she also wanted to sell the house she bought with her boyfriend. Her boyfriend, however, was mad at Julie for breaking up with him and so refused to agree to sell the house. Because they were not married, Julie could not go to a divorce lawyer, and because they both did not agree to sell, a realtor could not help Julie. Julie felt trapped. Julie then, however, found a partition lawyer and was able to get the house sold so she could move on with her life. A partition lawyer got the job done.

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What is the difference between a grant deed and a quitclaim deed? (Civil Code § 1113)

Published on: August 5, 2022 | By Underwood Law Firm, P.C.

Underwood-Blog-Images-1-1-300x300 The deed to a property is the most important document a property owner has. It describes the title and its associated rights while operating as the grant of the property itself. But not all deeds are created equal.

While grant deeds and quitclaim deeds are the most common tools for transferring title, they carry different warranties and convey fundamentally different property interests. These differences are immensely important, as they determine what rights a property owner actually has. The Underwood Law Firm, P.C. encounters both types of deeds with frequency and has the familiarity and skill to help titleholders understand their rights.

What is a deed?

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A Guide to Tenants-in-Common in California (Civ. Code § 682)

Published on: July 29, 2022 | By Underwood Law Firm, P.C.

underwood-guide-to-tenants-in-common-300x300 Co-owning property as tenants in common is the favored form of joint ownership in California. (Wilson v. S.L. Rey, Inc. (1993) 17 Cal.App.4th 234, 242 (S.L. Rey).) Yet, property held in tenancy in common brings with it a unique set of potential issues that are not present in the other forms of joint ownership recognized by the state. (see California Civil Code, § 682.)

Different ownership interest percentages between co-owners can affect one’s responsibilities for common expenses and levels of disbursement on a sale. A fiduciary relationship between joint owners can disrupt a co-owner’s ability to acquire an encumbrance. Payments for improvements to the property may not be recoverable in an accounting action if deemed “unnecessary.” These are just some of the issues we will attempt to address in this post about the financials of tenancies in common.

Developing Co-Owned Property

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Does RUPA apply to joint ventures? (Corp. Code § 16101)

Published on: July 27, 2022 | By Underwood Law Firm, P.C.

Underwood-Blog-Images-1-3-300x300 Yes. While joint ventures are a distinct type of business entity, they share many similarities with general partnerships in California. In fact, “the resemblance between a partnership and joint venture is so close that the rights as between adventurers are governed by practically the same rules that govern partners.” (Milton Kauffman, Inc. v. Superior Court (1949) 94 Cal.App.2d 8, 17.) That being said, there are some differences between the two. This post will address those differences and discuss the common issues that arise among them.

What is a joint venture?

Under California law, a joint venture “exists where there is an agreement between the parties under which they have a community of interest, that is, a joint interest, in a common business undertaking…” (County of Riverside v. Loma Linda Univ. (1981) 118 Cal.App.3d 300, 313.) In essence, “a joint venture is an undertaking by two or more persons to carry out a single business enterprise for profit.” (Unruh-Haxton v. Regents of University of California (2008) 162 Cal.App.4th 343, 370.)

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Is a litigation guarantee required in a Partition Action?

Published on: July 22, 2022 | By Underwood Law Firm, P.C.

Underwood-Blog-Images-2-1-300x300 While litigation guarantees are recommended in a lot of contested real estate issues in court, it is not required in a partition action. Read on to find out more about the nuances of litigation guarantees and their relationship with partition actions.

What is a partition action?

A partition action or a partition lawsuit is when one co-owner, or when one person with interest in the property wants to sell the property, but the other co-owners or others with interest in the property do not want to sell their ownership rights.

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Do you have a right to recover attorney’s fees in partition actions? (CCP § 874.020)

Published on: July 20, 2022 | By Underwood Law Firm, P.C.

Underwood-Blog-Images-1-2-300x300 Yes. In California, you have a right to recover attorney’s fees by statute. But that doesn’t mean that you can recover 100% of your fees, even in uncontested partitions. Courts will employ numerous equitable considerations in awarding costs, and the complexities of prolonged litigation may render some expenditures on your attorney unrecoverable. The focus of this blog post will therefore be those common issues that arise when attempting to recoup your costs.

The Authority for Awarding Attorney’s Fees in Partition Actions

Code of Civil Procedure, section 874.010 states that “[t]he costs of partition include: (a) [r]easonable attorney’s fees incurred or paid by a party for the common benefit.”

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What is the difference Between Tenants in Common and Joint Tenants? (Code of Civil Procedure section 683)

Published on: July 13, 2022 | By Underwood Law Firm, P.C.

Underwood-Blog-Images-1-300x300 In California, most real estate is held either as marital property, as a tenancy in partnership, as joint tenants, or as tenants-in-common. While holding titles as spouses or in a partnership is relatively straightforward, questions frequently arise as to the differences between “co-tenants” and “tenants-in-common.” This article will explore the difference between the second type of ways of holding titles between unmarried individuals, which is generally known as “co-tenancy.” (Civ. Code § 682.)

How is a joint tenancy created in real estate?

Generally, creating and maintaining a joint tenancy is much more difficult than creating a tenancy in common. First, a joint tenancy exists only when the “four unities” are concurrently present in the estate: the unity of interest, unity of time, unity of title, and unity of possession. (Tenhet, 18 Cal.3d 150, 155.) Second, by statute, a joint tenancy exists “when expressly declared in the will or transferred to be a joint tenancy.” (CCP § 683.)

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Can You Partition Partnership Property? (Corp. Code § 16202)

Published on: July 8, 2022 | By Underwood Law Firm, P.C.

Underwood-Blog-Images-1-1-300x300 Yes. Partnership property is subject to partition on the dissolution, accounting, and wind-up of partnership matters, just like other types of property. As real estate presents unique issues, however, there are many important things to know about the process to ensure that it is done correctly. The purpose of this blog post is to address some of the issues involved with partitioning property belonging to a partnership.

What is a Partnership?

Partnerships are a type of corporate entity with its own set of rules and regulations. By code, a partnership is born by the association of two or more individuals to carry on as co-owners of a business for profit, whether or not the persons intended to form a partnership. (Corp. Code § 16202.)

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Can I get compensated for improvements in a partition action (IE- upgrades)? (Code of Civil Procedure section 874.010)

Published on: July 6, 2022 | By Underwood Law Firm, P.C.

Underwood-Blog-Images-2-300x300 Yes. A party may be able to receive credits and/or offsets for upgrading a property in a partition action under many circumstances. In a partition lawsuit, two parties disagree about what to do with the jointly-owned property.

In those circumstances, one party can seek the sale of the property and then have the equity divided between all of the owners. Once the property is sold, the parties can make claims to the money left from the proceeds from the house.

One issue that often arises, however, is whether an improvement to the property—as opposed to a repair—is subject to an offset as part of the partition action. For example, if one party remodels a bathroom, would they have the right to an offset for that work?

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