California Code of Civil Procedure 873.850 is the California partition statute that allows the court to allocate the proceeds of sale through an accounting of offsets, inclusions, and other claims between the parties. The statute provides that:
When the proceeds of the sale belonging to persons who are parties to the action, whether known or unknown, have not been allocated among such parties, the action may be continued as between such parties, for the determination of their respective claims thereto, which must be ascertained and adjudged by the court. Further testimony may be taken in court, or by a referee, at the discretion of the court, and the court may, if necessary, require such parties to present the facts or law in controversy, by pleadings, as in an original action.
California Code of Civil Procedure 873.850
This allowance of respective claims between the parties in Section 873.850 follows the requirement that, following the ordinary costs of sale, “The proceeds of sale for any property sold shall” result in a “Distribution of the residue among the parties in proportion to their shares as determined by the court.”California Code of Civil Procedure 873.820(d); see California Code of Civil Procedure 873.810
For example: “Where one cotenant has paid more than his proportion of the purchase price of the land, he is entitled on partition to an accounting therefor.” Demetris v. Demetris (1954) 125 Cal.App. 2d 440, 445
Examples of such credits “include expenditures in excess of the co-tenant’s fractional share for necessary repairs, improvements that enhance the value of the property, taxes, payments of principal and interest on mortgages, and other liens, insurance for the common benefit, and protection and preservation of title.”Wallace v. Daley (1990) 220 Cal.App. 3d 1028, 1035–36 (citing California Code of Civil Procedure § 872.140)
However, there may be limits to the rights of offset. As one treatise explains: “In a suit for partition, it is a general rule that all equities and conflicting claims existing between the parties and arising out of their relation to the property to be partitioned may be adjusted.”48 Cal. Jur. 3d Partition § 14 (citing Demetris v. Demetris (1954) 125 Cal.App. 2d 440, 444-45)
This statute also allows the court to appoint the referee to issue a report on offsets, which can expedite the process of an accounting on the property.
Contact an Experienced Partition Attorney in California
If you want to end your co-ownership relationship, but your co-owner won’t agree, a partition action is your only option. Our experienced partition lawyers have years of experience ending co-ownership disputes and can help you unlock the equity in your property. For a free, 15-minute consultation with an experienced partition attorney at Talkov Law, call (844) 4-TALKOV (825568) or fill out a contact form online.
|↑1||California Code of Civil Procedure 873.820(d); see California Code of Civil Procedure 873.810|
|↑2||Demetris v. Demetris (1954) 125 Cal.App. 2d 440, 445|
|↑3||Wallace v. Daley (1990) 220 Cal.App. 3d 1028, 1035–36 (citing California Code of Civil Procedure § 872.140)|
|↑4||48 Cal. Jur. 3d Partition § 14 (citing Demetris v. Demetris (1954) 125 Cal.App. 2d 440, 444-45)|