My Co-owner Asked for Partition by Sale. Can I Buy Out my Co-owner?

Yes, California Code of Civil Procedure 874.317 is the California partition statute that sets forth the manner in which a co-owner of property can buy out the interests of the other co-owners who requested a sale in a partition action. The purchase price for the buy out under the Partition of Real Property Act is based on the fair market value of the property.

Co-Owner’s Right to a Buy Out Under the Partition of Real Property Act

The Partition of Real Property Act, effective January 1, 2023 in California, allows a co-owner who did not request a partition by sale to purchase the interest of a party who did request partition by sale. It does so through Section 874.317(a), which explains that the court will “send notice to the parties that any cotenant except a cotenant that requested partition by sale may buy all the interests of the cotenants that requested partition by sale.” Section 874.317(b) explains again that a co-owner “may give notice to the court that it elects to buy all the interests of the cotenants that requested partition by sale.” “‘Partition by sale’ means a court-ordered sale of the entire property, whether by auction, sealed bids, or open-market sale conducted under Section 874.320.”[1]Code Civ. Proc. § 874.312(b).

How Does the Fair Market Value of the Buyout Get Determined?

Within the Partition of Real Property ActCalifornia Code of Civil Procedure 874.316 establishes a protocol for appraising property in partition actions, dictating how courts should assess fair market value, the conditions under which they may accept an agreed valuation by cotenants, and the criteria for appointing an independent appraiser to ensure an impartial valuation process as follows:

(b) If all cotenants have agreed to the value of the property or to another method of valuation, the court shall adopt that value or the value produced by the agreed method of valuation.

(c) If the court determines that the evidentiary value of an appraisal is outweighed by the cost of the appraisal, the court, after an evidentiary hearing, shall determine the fair market value of the property and send notice to the parties of the value.

(d) If the court orders an appraisal, the court shall appoint a disinterested real estate appraiser licensed in the State of California to determine the fair market value of the property assuming sole ownership of the fee simple estate. On completion of the appraisal, the appraiser shall file a sworn or verified appraisal with the court.

California Code of Civil Procedure 874.316

Purchase Price Calculation for Buying Out Property

Section 874.317(c) explains that the buyout “purchase price for each of the interests of a cotenant that requested partition by sale is the value of the entire parcel determined under Section 874.316 multiplied by the cotenant’s fractional ownership of the entire parcel.”

Section 874.317(d) explains what happens when a co-owner elects to purchase the property at the appraised price. First: “If only one cotenant elects to buy all the interests of the cotenants that requested partition by sale, the court shall notify all the parties of that fact.”[2]California Code of Civil Procedure Section 874.317(d)(1).

Who is Ineligible to Purchase a Property Subject to a Partition by Sale?

Under California Code of Civil Procedure 873.690, only a small group of individuals are prohibited from purchasing property in a partition action. “Only three categories of people are identified as being ineligible to purchase property in a partition sale, namely, a referee appointed by a court to divide or sell the property, a party’s attorney, and a party’s guardian or conservator unless for the party’s benefit.”[3]Cummings v. Dessel (2017) 13 Cal. App. 5th 589, 600. This means that co-owners can buy the property in a partition action.

Talkov Law’s Partition Attorneys Can Help

If you’re looking to end your co-ownership dispute through buying out your co-owner’s interest in the property subject to partition, Talkov Law can help. As California’s foremost experts in partition action, having Talkov Law’s partition attorneys by your side means legal strategies tailored to maximize your benefits. For a free consultation, call (844) 4-TALKOV (825568) or reach out online today.

References

References
1 Code Civ. Proc. § 874.312(b).
2 California Code of Civil Procedure Section 874.317(d)(1).
3 Cummings v. Dessel (2017) 13 Cal. App. 5th 589, 600.
About Scott Talkov

Scott Talkov is California's #1 partition lawyer, having handled over 400 partition actions. He founded Talkov Law Corp. after more than one decade of experience at a California real estate litigation firm, where he served as one of the firm's partners. He has been featured on CNN, ABC 7, KCBS, and KCAL-9, and in the Los Angeles Times, the Orange County Register, the San Diego Union-Tribune, the Press-Enterprise, and in Los Angeles Lawyer Magazine. Scott has been rated by Super Lawyers since 2013. He can be reached about new matters at info@talkovlaw.com or (844) 4-TALKOV (825568). He can also be contacted directly at scott@talkovlaw.com.

Talkov Law is Rated 5 out of 5 stars based on 169 reviews

Contact Us Today for a Free Consultation & Pay No Retainer

Call Talkov Law to discuss having your legal fees paid from the proceeds of sale of your property and no money down







      Awards and Recognition

      Scott Talkov Partition Attorney Super Lawyers
      US News and World Report Scott Talkov

      We Have Been Featured On:

      The Real Deal

      Offices Throughout California

      Los Angeles Partition Attorneys
      10880 Wilshire Blvd Ste 1101
      Los Angeles, CA 90024
      Phone: (310) 496-3300

      Orange County Partition Attorneys
      4000 MacArthur Blvd Ste 655
      Newport Beach, CA 92660
      Phone: (949) 888-8800

      San Jose Partition Attorneys
      99 S. Almaden Blvd Suite 600
      San Jose, CA 95113
      Phone: (408) 777-6800

      San Diego Partition Attorneys
      11622 El Camino Real Ste 100
      San Diego, CA 92130
      Phone: (858) 800-3300

      San Francisco Partition Attorneys
      50 California St, Ste 1500
      San Francisco, CA 94111
      Phone: (415) 966-3300

      Riverside Partition Attorneys
      3610 Central Ave, Ste 400
      Riverside, CA 92506
      Phone: (951) 888-3300

      Sacramento Partition Attorneys
      500 Capitol Mall, Suite 2350
      Sacramento, CA 95814
      Phone: (916) 668-3300

      The information on this site, including the Talkov Law Blog, is intended for general information purposes only. By using this site, you agree that any information contained in the site does not constitute legal, financial or any other form of professional advice. Information on this site may be changed without notice and is not guaranteed to be complete, accurate, correct or up-to-date.