Forced Sale - Petitions To Partition

Petitions To Partition

Partitioning is a legal right and is commenced by filing a petition to partition with the court. Specific partition law varies from state to state; however, the premise can be generalized according to the type of deed. Owners of Tenants in Common (TIC) and Joint Tenants with Rights of Survivorship (JTWROS) deeds can file for partition.

When partitioning a JTWROS deed, all proceeds are split equally among co-owners as JTWROS deeds grant all owners equal shares. No credits would be given for any excess contribution to purchase price; however, credits may be given for utilities and maintenance. Credit may also be given for improvements if the improvements resulted in an increase in the property value.

When partitioning a TIC deed, owner shares are considered. For example, if owners A, B and C own property as tenants in common, where A owns 50%, B owns 25% and C owns 25%, a sale of $100,000 would be split $50,000 to A and 25,000 to B and C. However, after the initial determination of shares, the court may consider other contributions by the owners. For example, if A made reasonable and necessary renovations and was never reimbursed, the court may reimburse A from the awards to B and/or C. Generally, frivolous improvements to the property are not reimbursed as they would not substantially increase the value of the property.

Some states allow one tenant to buy out the other tenants to prevent a public forced sale. Some states also allow multiple tenants to join their shares together to form a majority ownership which will prevent a public forced sale.