Multiple owners Archives

Is a Partition Always 50/50? (CCP § 874.040)

Published on: October 13, 2021 | By Underwood Law Firm, P.C.

50/50 illustration of a wall partition
The purpose of this post is to discuss how the proceeds of a partition action are divided between the owners of the property. This post will address the general rule for partition actions, address common instances, and provide some insight for anyone going through the process.

The first thing to know about partition actions is that they are governed by “fairness,” or what is commonly referred to in the law as “equity.” Although the California Code of Civil Procedure contains statutes that govern partition actions, all of a judge’s decisions in the action are supposed to be determined by what is fair. (CCP § 874.040.)

But what is fair? Generally, if a property is jointly owned by two parties and each of them has evenly split all of the costs, then naturally, fairness would dictate that they evenly split the proceeds from the sale. As many of us know, however, life is rarely so neat and clean.

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The Problem with Partnerships

Published on: October 8, 2021 | By Underwood Law Firm, P.C.

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At some point or another, it becomes necessary to have “the talk” and “define the relationship” within a business. While the thought of defining business roles may make some people nervous, not having a conversation is a source of even greater anxiety when the relationship involves an investment, business venture, or development project.

The problem, for many people, is that they don’t know what terms to use to define a business relationship or how to structure it other than as a “50/50 partnership.” Many people are reluctant to structure it in any other way because of a concern of looking “greedy” or because another structure could cause the other party to back out of the deal, thereby removing the capital necessary to make the project happen.

If you find yourself in these situations, however, you should know that there are many alternatives to a “true partnership” that may work better for all of the parties involved.

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How do I respond to an Eminent Domain Lawsuit?

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

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What is the Eminent Domain Process?

The eminent domain process begins with an environmental review, negotiations with property owners, a hearing before a public entity, and then eventually, an eminent domain lawsuit. After some preliminary negotiations, a public entity will generally hold a hearing on something called a “Resolution of Necessity.” This is a formal determination by a governmental entity that a piece of private property is required for the construction of public work. Following the hearing on a resolution of necessity, the governmental entity will file a lawsuit in eminent domain.

What is an Eminent Domain Complaint?

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Surplus Land Act Guidelines Released

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

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Surplus Land Act

Government Code section 54230.5 contains the “penalty” or “enforcement” provisions in the updated Surplus Land Act enacted under Assembly Bills 1255 and 1486 in 2019. Specifically, Section 54230.5 (a)(1) creates a penalty of “30 percent of the final sale price of the land sold in violation of this article for a first violation and 50 percent of any subsequent violation.” This is a serious hammer for noncompliance. A public entity may rightly be concerned, however, with ambiguities or gaps in a newly-enacted law.

Recently, in April 2021, the California Department of Housing and Community Development (HCD) released “guidelines” to provide clarity on the law to avoid the perils of non-compliance. Broadly, the Guidelines include further refinement of “definitions,” information on the “surplus land determination process,” requirements to be placed on surplus land for affordable housing, reporting requirements, and performance monitoring and penalties. These Guidelines are made available here and through HCD’s website. Since the Guidelines are too extensive to be digested in a single blog post, later posts here will digest each of the pieces and–the remaining gaps–over time. Until then, they are worth reviewing in full.

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What is the Surplus Land Act?

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

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In 2019, California passed a revision to the Surplus Land Act to make more public land available for private development in order to address the State’s ongoing housing crisis.

Who is subject to the Surplus Land Act?

Currently, as a result of the Legislature’s revision in 2019, the Surplus Land Act extends to any public entity within the State of California. Previously, the definition was limited to specified entities.

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