Image of Gavel, and Constitution for blog image. ​​Can a property owner sue for inverse condemnation when the government refuses to permit development? Underwood Law Firm, P.C.In certain situations, it is possible for a property owner to sue the government for inverse condemnation when the government refuses to permit development and that refusal results in a “taking” under the United States constitution. 

If the city, state, or federal government refuses to permit development, it must take away all or substantially all the reasonable use of the property in order to form the legal basis for an inverse condemnation lawsuit. Then, the basis for inverse condemnation is formed on the basis of the government’s refusal to permit development, and this can be a powerful legal remedy for property owners.

The lack of reasonable use of the property is viewed with consideration of all of the impact on the personal landowner’s land in order to substantiate an inverse condemnation claim against the government. 

Notice of Foreclosure image for Blog Can someone foreclose on a property during a partition action? Underwood Law Firm, P.C.While the brief answer is “yes,” the issue is a bit complicated, like many things in the real estate litigation world. 

Who is a proper party to a partition action?

Generally, any person claiming an interest in a piece of real estate must be joined in the action in order to fully settle all issues with respect to that property. If a person is not joined, then the court case is not binding, or res judicata, with respect to that person. As such, a partition action includes not only all title owners but also any companies claiming a mortgage interest. 

A house facadeNo, rent control laws cannot prevent a partition eviction. However, the answer is a bit more complicated than one might think. There are very specific rules and regulations in California that regulate both rent control laws and partition action evictions. Read on to learn more.

What is Rent Control?

While the benefits of rent control vary state-to-state, the regulations of each state’s rent control laws and regulations seek to restrict how much a landlord can raise prices on rent, restrict eviction against long-term tenants, and protect the tenant from rising costs associated with renting the landlord’s property.

stacked of books on a desk
When a title owner sues to partition the property, then the matter is relatively straightforward. On the other hand, when a person claims to be an owner of the property but does not appear on the title, can they still sue to partition the property?

Who can sue for partition?

A legal titleholder—as well as the holder of an equitable title to an undivided interest—may sue to establish his or her right and to obtain a division of the common property. (Varni v. Devoto (1909) 10 Cal.App. 304.) Not all equitable titles, however, are created equal. Indeed, the partition statute explicitly lists the types of equitable interests that may have a right to seek recourse through the partition.

A big house facade with a garden on its lawn
Everyone agrees that there is a shortage of affordable housing in California. There are many possible solutions to this problem, one of the solutions was the Legislature’s passage of AB 1486.

What is the purpose of the Surplus Land Act?

Government Code section 54220 sets the stage for the other provisions of the Surplus Land Act.

A lawyer's desk with scales in front and a lawyer's signing a paperwork behind it.
The acquisition of private property for eminent domain usually proceeds on a long timeline. Before the government actually uses eminent domain to acquire private property, there is a substantial amount of planning. During the pre-condemnation period, which can stretch for years, a governmental entity often has the opportunity to make land use decisions about the property that it intends to acquire.

While there is nothing out of the ordinary with making land use decisions pending condemnation, per se, it can become problematic when those decisions lower the value of the land that will eventually be taken. In those situations, there is a question about whether the property owner in that situation can recover from the diminution in value.

Unreasonable Delay is Compensable

A lawyer signing a paperwork on his desk
One reason partition actions are a good option is that there is generally an absolute right to partition, but every rule has exceptions. In a partition action, the main exception is when the parties have executed a partition agreement. Generally, the right to partition can be waived by an express—or implied—an agreement between co-tenants. (CCP § 872.710; Penasquitos, Inc. v. Holladay (1972) 27 Cal.App.3d 356, 358.)

What is required for a partition agreement?

A partition agreement may be an express statement that the right to partition is waived. It may also be evidenced by a right of first refusal where one co-tenant is required to offer the property for sale to another co-tenant as a condition precedent to an action for partition. (Harrison v. Domergue (1969) 2724 Cal.App.2d 19, 21.)

A lawn or vacant lot fronting a big house across.
When there is so much real estate to buy in California, it may not be clear why anyone would benefit from purchasing surplus land in the first instance. After all, it requires going through a negotiation process with a public entity and may take longer than other land purchases. There are some drawbacks to buying “surplus land” from a public entity. The question, then, is whether there are any benefits to buying surplus land.

Are there any ways that buying Surplus Land is beneficial?

Government Code section 54225 provides that any public agency disposing of surplus for “low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing and low- and moderate-income families may exceed 20 years. Still, the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.”

A chess board where the king fell down
In many ways, partition actions are relatively straightforward. Generally, in a partition action, the two property owners cannot agree on its use, and one of the owners asks the court to sell the property so each can go their separate ways.

The question arises of whether one of the two persons actually owns the property in the first instance. When there is a question of whether one of the parties is an owner, can you contest the title in a partition action? The answer is “yes,” as one of the primary purposes of a partition action is a determination of title.

Generally, at trial, the court must determine whether the plaintiff has the right to partition. (CCP § 872.210(a).) A question of ownership of property, as presented in a partition action, may be one of fact or law, depending on whether the determination of the issue involves a decision on conflicting facts or the application of the law to a stated set of facts. (Lieb v. Superior Court (1962) 199 Cal.App.2d 364.)

Aerial image of a wide portion land in a city
The revised Surplus Land Act contains negotiation requirements to encourage the sale of surplus public land. Also, the law makes it more likely that the land will ultimately be developed for as much housing as possible. Prior to entering negotiations, however, AB 1486 requires that the agency selling the surplus land must first give notice.

Government Code section 54222 states that “Any local agency disposing of surplus land shall send, prior to disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability to all of the following [list of persons]. (emphasis added.)”

By the use of the mandatory term shall, this section mandates notification and therefore ensures that the widest possible array of interested persons will be able to compete to develop the surplus land.

Contact Information