When co-owners of real estate decide to go their separate ways, a buyout is often the first solution discussed. One party keeps the property and pays the other for their share. However, this only works if the co-owner has the financial ability and is willing to follow through. When the buyout does not happen, many people feel stuck in co-ownership with no clear path forward.
While the law will not force the co-owner to but your interest, the court will give the co-owner a legal ultimatum to either buyout your share, or force the sale of the property through a partition action under California law.
Why Buyouts Often Fail
Buyouts frequently fall apart for practical reasons:
- The co-owner cannot qualify for refinancing, particularly if interest rates have risen since the mortgage on the property
- The parties disagree on the property’s value
- The parties disagree on offsets for unequal contributions to the property
- One party delays or refuses to complete the process, usually while living at the property
Even when both parties initially agree, financial limitations or disputes can prevent a buyout from happening.
You Do Not Have to Stay in Co-Ownership
Under California law, a co-owner of real property has an absolute right to partition. (Code Civ. Proc., § 872.710.)
This means:
- You do not need your co-owner’s consent
- You do not need to prove wrongdoing
- You cannot be forced to remain in co-ownership
If a buyout fails, the law provides a direct solution.
What Happens Next When a Buyout Fails
When co-owners cannot resolve the situation through a buyout, the typical next step is to file a partition action.
In most cases, the court will order a partition by sale. This means the property is sold and the proceeds are divided according to each owner’s interest.
The process generally includes:
- Filing a partition lawsuit
- Appointing a partition referee to manage the sale
- Marketing and selling the property
- Distributing the sale proceeds
For single-family homes and most residential properties, courts almost always order a partition by sale rather than trying to divide the property physically (also known as a “partition in kind”).
What to Know If a Buyout Fails
- A failed buyout does not leave you stuck in co-ownership
- California law allows you to force a sale through partition
- You do not need permission from your co-owner
- Courts will order the sale of the property upon co-owner request
- The proceeds are divided based on ownership interests and potentially offsets
When a Buyout Fails, Force the Sale with a Partition Attorney
When a co-owner cannot buy you out, a partition action provides a clear and enforceable path to resolving the dispute.
At Talkov Law, our team of twelve partition attorneys handles every step of the process, including filing the lawsuit, managing the sale, and resolving financial disputes between co-owners.
Call (877) PARTITION (727-8484) today to speak with a California partition attorney and take the next step toward resolving your property dispute.
