Legal Question in Real Estate Law in California

Re: property

A lawsuit for partition will probably cause the co-owners who don't want to sell to re-evaluate their positions. Faced with the inevitability of a sale, such co-owners will usually (well, often) change their minds and sit down at the bargaining table to work out an out-of-court settlement.

If there are thorny issues over splitting the net proceeds of sale, but agreement to sell has been reached voluntarily or by a court's interlocutory decree of partition, the parties can agree to arbitrate the method and terms of sale and other money issues rather than go through the referee and trial process, thus saving some time and money.

Partition lawsuits are less popular now than a few years ago, because with the bad market a lot of properties will not sell for a price that pays the mortgage and expenses of the legal process.

Finally, partition is pretty much an absolute right of a co-owner of the property itself, e.g. a joint tenant or tenant in common. However, if the four-person ownership here is indirect, through an entity such as an LLC or general partnership, partition may not be the right legal process.

Re: property

Any co-owner (i.e. ones that want to sell and the ones that do not) can petition the Superior Court for an order partitioning the property. In essence, the Court forces a sale. Every co-owner has the absolute right to do this, unless a written agreement prevents it (highly unlikely).

Most of the dispute (if any) in a partition action is not the right to partition but rather the extent the proceeds to each co‑tenant are subject to adjustment. Partition lawsuits require interface with title insurance representatives as well as the appointment of a referee to sell the property. The lawsuit proceeds in four phases: obtaining an order of partition and sale, the appointment of a referee, the order of sale, and the distribution of proceeds.

They are not inexpensive lawsuits, however, some attorneys (like this firm) do handle them on a contingency, subject to certain conditions.

Good luck.

Re: property

File court action to partition and sell the property, subject to the terms of any written agreement to the contrary. Feel free to contact me if serious about doing so.

Re: property

The 2 people who want to sell can serve the 2 people who do not want to sell documents called "Summoms and Complaint on Partition" which have been filed with the court. The court will then order that the property be sold to the highest bidder. Once the property is sold and the proceeds distributed, the 2 people who do not want to sell will no longer be your problem; they will be the problem of the new buyer.