What if they need an undivided interest during a fourplex. They wish to end their investing enterprise, but they can't agree on the disposition of the property?
An action for partition may be the only solution. That means one of the investors turns to the court to decided how and when the interest in the property will be divided.
In an exceedingly partition action the owner or claimant of real property or any interest within the property might compel a partition (division) of the property between him and alternative owners. It may vary from state to state, however in Arizona the partition grievance is filed in the superior court of the county in which the property is situated.
The court will hold a hearing to "confirm the share of interest within the property sought to be divided of each of the owners or claimants, and all queries affecting the title..."
In alternative words... when people who have an undivided interest during a property cannot agree on disposal the court will do it for them.
Here's another example of partition in action:
If an ex-wife or ex-husband refuses to sell their home or deed their interest to the other (and the important estate isn't mentioned within the divorce decree) the sole means the house can be sold is thru a partition action.
When a husband and wife buy a home along, they own it as "tenants by the whole thing". Upon the death of 1 spouse, the surviving spouse automatically becomes sole owner of the property. This can be called the "right of survivorship".
When there's a divorce, the tenancy by the whole thing is dissolved into a "tenancy-in-common", whereby every spouse features a one-half interest within the property without the correct of survivorship. The tenancy-in-common differs from the "joint tenancy", that is common ownership with the correct of survivorship.
Typically, tenants-in-common and joint tenants "in possession of real property" have the correct to partition of the property. However if the separation agreement or divorce decree grants exclusive possession of the home to the wife, the husband usually is denied his right to partition.
In a very partition action, property is either divided into distinct portions or sold at a public auction and therefore the proceeds distributed among the co-owners (if it's not doable to divide the property).
Generally there is an opportunity for an investor in such a situation. If you are a money buyer you'll be ready to negotiate separately with every party and purchase the property. If not you'll suggest partition and try to buy at the public auction.
Another chance comes when the two parties receive their share of the proceeds from the auction. You might be ready to sell or rent them one in every of your homes.
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Aaron R Daniel has been writing articles online for nearly 2 years now. Not only does this author specialize in Real Estate Law, you can also check out his latest website about:
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