California Partition Law Blog

How Does Accounting Work In A Partition By Division? (CCP § 873.250)

Published on: November 5, 2021 | By Underwood Law Firm, P.C.

Big house facade with texts place on the image "How does an accounting work in a partition by division?"
When two parties jointly own property but cannot agree on its use, then the sale of the property by a “partition” action is frequently a great remedy to solve the dispute. This tool, however, is not available in all circumstances. While a “partition by sale” makes a lot of sense with regard to a single-family home, it may not make as much sense when the land at issue is vacant undeveloped land. In that instance, a partition by division—the simple division of the property—may be the best outcome for all the parties. A partition by division, however, raises the question of how to account for unequal contributions to the property.

Amounts Paid For Partition Action

Code of Civil Procedure section 873.250 provides that where a division of property cannot be made equally among the parties according to their interests, without prejudice to any party, then compensation may be required to be made by one party to another to correct the inequality. This is commonly called “owelty.”

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What’s the Big Deal with the New Surplus Land Act? (Gov. Code § 54222)

Published on: November 3, 2021 | By Underwood Law Firm, P.C.

Wide array of land with a stream in the middle.
Everything old is new again. Or so it seems. Sometimes a new thing really is new. In this case, the question is whether the new Surplus Land Act is truly as big of a change as touted. After all, there was a Surplus Land Act before, and there’s a Surplus Land Act now. What’s the big deal?

New Designation Requirements

One small but powerful change is that AB 1486 requires an entity disposing of surplus land to send a notice of availability to the Department of Housing and Community Development (the “Department”) rather than upon written request. This is part of the new “master list” requirements whereby the Department is now required to maintain a master list of available surplus land available. (see Gov. Code § 54222(a)(2).) By requiring each entity to send the information to the Department instead of requiring the Department to request such information, AB 1486 makes it easier for prospective purchasers to understand what is available.

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What is the purpose of the Surplus Land Act? (Gov. Code § 54221)

Published on: November 1, 2021 | By Underwood Law Firm, P.C.

Landscape image of a wide land in the field
The purpose of this article is to address the goals that California’s Surplus Land Act was designed to accomplish.

The article will address the prior version of the Surplus Land Act, the changes to definitions made in 2019, and provide a big-picture perspective on its aims.

In 2019, the California Legislature re-made the Surplus Land Act in significant ways. Just three of those ways are addressed here.

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How does a 1031 Exchange Work in Eminent Domain? (I.R.C. § 1033)

Published on: October 30, 2021 | By Underwood Law Firm, P.C.

Aerial view of land as a background image with texts about eminent domain
As if eminent domain is not bad enough, after you’ve gone through the process, the government wants to tax you on the land it made you sell. Savvy property owners, however, can limit their tax liabilities through the use of a 1031 exchange process.

Can a property owner limit the effects of eminent domain?

Internal Revenue Code section 1033 permits the owner of property taken by eminent domain to avoid income tax liability by purchasing qualified replacement property within a specified time following the condemnation.

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Why Don’t Business Owners Receive Compensation Offers in Eminent Domain? (Gov. Code § 7267.1)

Published on: October 29, 2021 | By Underwood Law Firm, P.C.

Business man handing over an envelopment to another man inside the office
The purpose of this post is to address the process where a governmental entity makes an offer to purchase property in contemplation of the later use of the eminent domain.

This post will address the rule that applies for offers prior to eminent domain, known as “pre-condemnation offers,” address specifics applicable to business, and then contemplate some difficult questions.

Eminent Domain Compensation

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Who is a proper party to a partition action? (CCP § 872.540)

Published on: October 27, 2021 | By Underwood Law Firm, P.C.

types of property collage together in one image
The purpose of this post is to discuss who should be part of a partition action. This post will discuss who is typically joined, note some interesting problems, and address how to properly prosecute such an action. After reviewing this article, the reader will be better able to identify who should be named as a party in a partition action.

Partition Action

Generally, as a partition action will cause the sale of the property or otherwise affect the title, it is important to name all persons who have any sort of “interest” in the property. This inquiry generally begins by examining who is listed on the title.

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How Does a Partial Taking Affect My Property Taxes? (Treas. Reg 6 1.10233(a)-2(c)(10)

Published on: October 22, 2021 | By Underwood Law Firm, P.C.

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The purpose of this post is to discuss how a partial taking of your property may affect your property taxes.

Often, in an eminent domain action, there are at least two types of damages or payment required. First, the government should pay the property owner for the property actually taken.

Second, when the government takes anything less than the entire parcel, the government should also pay the property owner for any damages caused to the property left-over.

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So, You Bought a House with Your Boyfriend

Published on: October 19, 2021 | By Underwood Law Firm, P.C.

artwork illustration of a house with 2 persons splitting up with a broken heart.
As a millennial, we’ve faced financial challenges different from all those before us. We graduated college with more debt into the harsh job market of the Great Recession and then have had to compete during one of the hottest housing markets ever. So, many of us have had to do things differently.

We’re having children later, getting married later, and maybe buying real estate before getting married. What happens, then, when you buy a property with someone that you’ve decided is not going to be part of your long-term plans, and now you cannot agree on what to do with it?

You’ve fought, you’ve negotiated, and now you just want to move on.

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How Does a Partition Lawsuit Work? (CCP § 874.720)

Published on: October 15, 2021 | By Underwood Law Firm, P.C.

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This article provides insight into how the partition process works so that you can know what to expect and hopefully navigate the process more smoothly. The typical steps for a partition lawsuit are described below.

Sometimes, when you inherit real estate together with another family member, or you buy an investment with a partner, the relationship deteriorates, and the parties cannot agree on what to do with the property. When you reach that situation, then a partition lawsuit is something you should consider.

The Partition Lawsuit Steps

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How Does Eminent Domain Work?

Published on: October 14, 2021 | By Underwood Law Firm, P.C.

A person writing on an office desk holding a key beside a model miniature house.
For many of us, real estate is our most valuable asset and the thing that we rely on to provide security for retirement. It is also our passion where we can use our creativity to make our mark on the world. When we receive notice that it may be the subject of an eminent domain action, however, the unknown elements of the process can be a source of great anxiety.

This article provides insight into how the eminent domain process works so that you can know what to expect and hopefully navigate the process more smoothly. The typical steps for the eminent domain process are laid out below.

The Eminent Domain Steps

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