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Partition (law)
A partition is a term used in the law of real property to describe an act, by a court order or otherwise, to divide up a concurrent estate into separate portions representing the proportionate interests of the owners of property. It is sometimes described as a forced sale. Under the common law, any owner of property who owns an undivided concurrent interest in land can seek such a division. In some cases, the parties agree to a specific division of the land; if they are unable to do so, the court will determine an appropriate division. A sole owner, or several owners, of a piece of land may partition their land by entering a deed poll (sometimes referred to as "carving out").
Forced sales generally occur because the owners of property in shared ownership are unable to agree upon certain aspects of the ownership. The owners may disagree on how to use the property, the amount of money to invest into the property, on their right to occupy and use the whole of the property. If the parties cannot come to an agreement, the case moves to court through a petition to partition action.
Property may be owned by more than one person either as joint tenants, tenants in common, and in some states tenants by the entirety. The choice of which tenancy to enter into is made by the parties at the time of purchase. With each type of tenancy, each owner has the right to occupy the whole. That means that owners are not allowed to designate certain rooms as their own, but each element of the property is enjoyed fully by all parties.
There are three kinds of partition which can be awarded by court: partition in kind, partition by allotment, and partition by sale.
A provision in a deed completely prohibiting partition will not be given effect, but courts will enforce a provision that temporarily restricts partition, as long as the restriction is reasonable.
A party seeking a partition must file a partition lawsuit. State codes generally favor physical division (partition in-kind) of the affected property(s) over sale (partition by sale as a unit), particularly if a tenant would be displaced from his or her primary residence by a sale. If in-kind partition is feasible, the property(s) will be divided proportionally. Where small differences in such division are unavoidable, cash compensation for the difference(s) will be awarded to maintain proportionality. If the property(s) cannot be divided and allocated to give each tenant a portion without spoiling the whole, the court will order a sale. A special master (referee) is commonly appointed by the court to execute the partition process. The referee is responsible only to the court, and the referee is limited only by the court's instructions, and applicable state codes. For an in-kind partition, the referee will cause deeds to the adjusted property(s) to be prepared. Where easements are required for access, the referee will employ professionals (engineers, surveyors and other experts) as required to describe the easement(s). The conveyance deeds for the adjusted property(s) and the easement deed(s) will be recorded simultaneously. Often, "referee's deeds" (deeds signed by the referee, in the owner's stead) may be employed.
Tenants in common (TIC) deeds may or may not be taken in equal shares, but a joint tenants with rights of survivorship (JTWROS) deed must always be taken in equal shares unless specifically and clearly indicated otherwise in the deed language. Therefore, a partition action for those two types of deeds will vary.
When a JTWROS property is partitioned, the proceeds must be divided equally among tenants without regard to contribution to purchase price since a JTWROS deed is always taken in equal shares. So with a JTWROS, contributions to purchase price is not an issue during partition. Otherwise, the premise of a JTWROS deed would be invalid and its purpose would be defeated. On the other hand, when a TIC property is partitioned, courts may be at liberty to consider unequal contributions to purchase price and adjust the tenants' distributions accordingly.
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Partition (law)
A partition is a term used in the law of real property to describe an act, by a court order or otherwise, to divide up a concurrent estate into separate portions representing the proportionate interests of the owners of property. It is sometimes described as a forced sale. Under the common law, any owner of property who owns an undivided concurrent interest in land can seek such a division. In some cases, the parties agree to a specific division of the land; if they are unable to do so, the court will determine an appropriate division. A sole owner, or several owners, of a piece of land may partition their land by entering a deed poll (sometimes referred to as "carving out").
Forced sales generally occur because the owners of property in shared ownership are unable to agree upon certain aspects of the ownership. The owners may disagree on how to use the property, the amount of money to invest into the property, on their right to occupy and use the whole of the property. If the parties cannot come to an agreement, the case moves to court through a petition to partition action.
Property may be owned by more than one person either as joint tenants, tenants in common, and in some states tenants by the entirety. The choice of which tenancy to enter into is made by the parties at the time of purchase. With each type of tenancy, each owner has the right to occupy the whole. That means that owners are not allowed to designate certain rooms as their own, but each element of the property is enjoyed fully by all parties.
There are three kinds of partition which can be awarded by court: partition in kind, partition by allotment, and partition by sale.
A provision in a deed completely prohibiting partition will not be given effect, but courts will enforce a provision that temporarily restricts partition, as long as the restriction is reasonable.
A party seeking a partition must file a partition lawsuit. State codes generally favor physical division (partition in-kind) of the affected property(s) over sale (partition by sale as a unit), particularly if a tenant would be displaced from his or her primary residence by a sale. If in-kind partition is feasible, the property(s) will be divided proportionally. Where small differences in such division are unavoidable, cash compensation for the difference(s) will be awarded to maintain proportionality. If the property(s) cannot be divided and allocated to give each tenant a portion without spoiling the whole, the court will order a sale. A special master (referee) is commonly appointed by the court to execute the partition process. The referee is responsible only to the court, and the referee is limited only by the court's instructions, and applicable state codes. For an in-kind partition, the referee will cause deeds to the adjusted property(s) to be prepared. Where easements are required for access, the referee will employ professionals (engineers, surveyors and other experts) as required to describe the easement(s). The conveyance deeds for the adjusted property(s) and the easement deed(s) will be recorded simultaneously. Often, "referee's deeds" (deeds signed by the referee, in the owner's stead) may be employed.
Tenants in common (TIC) deeds may or may not be taken in equal shares, but a joint tenants with rights of survivorship (JTWROS) deed must always be taken in equal shares unless specifically and clearly indicated otherwise in the deed language. Therefore, a partition action for those two types of deeds will vary.
When a JTWROS property is partitioned, the proceeds must be divided equally among tenants without regard to contribution to purchase price since a JTWROS deed is always taken in equal shares. So with a JTWROS, contributions to purchase price is not an issue during partition. Otherwise, the premise of a JTWROS deed would be invalid and its purpose would be defeated. On the other hand, when a TIC property is partitioned, courts may be at liberty to consider unequal contributions to purchase price and adjust the tenants' distributions accordingly.