California Partition Referee

 

What is a Partition Action in California?

A partition action is a court-supervised legal process that terminates joint ownership of real property, either by dividing the property or forcing a sale.

In California, any individual co-owner of real property has the right to initiate a partition action unless that right has been explicitly waived. (CCP § 872.210)

California law recognizes many different types of partitions. The three most common are the following:

Partition in Kind – In a Partition in Kind the court orders the property to be divided among the co-owners. Partition in Kind is most common with vacant land. (CCP § 872.810.)

Partition by Sale – In a Partition by Sale the court orders the property to be sold and the proceeds distributed. Partition by Sale usually occurs when the physical division of property is impractical, such as with a single-family home. (CCP § 872.820)

Partition by Appraisal – In a Partition by Appraisal the court allows co-owners to buy out other interests before a forced sale. This form of partition was added in 2022 under the Partition of Real Property Act (CCP §§ 874.310–874.323). Partition by Appraisal can also be allowed on property not covered by the Partition of Real Property Act if agreed by all owners.

A partition action generally unfolds in two stages:

  • Stage 1: Ownership and Sale: The court confirms ownership percentages and decides whether to divide the property or sell it. (CCP §§ 872.610–872.840 and 874.316-874.320).
  • Stage 2: Accounting and Compensatory Adjustments: If a sale is ordered, the court oversees the distribution of net proceeds. During this phase the court may utilize the sale proceeds to reimburse co-owners for unequal contributions or usage of the property during the period of joint ownership, including for: unequal financial contributions (mortgage payments, taxes, insurance), repairs and improvements, exclusive possession or rent collected by one party. These compensatory adjustments are governed by CCP § 873.850 and equity principles developed through case law, including Milian v. De Leon (1986) 181 Cal.App.3d 1185.

What is a Partition Referee?

A Partition Referee is a neutral third party appointed by the court and paid from the sale proceeds of the property upon court confirmation of the sale. The Partition Referee is neither hired, nor paid by the individual property owners.

The Role of a Partition Referee

In the absence of a Partition Referee, the sale of real property requires all co-owners to unanimously agree on all aspects of the sale including selecting a real-estate broker, setting a listing price, responding to offers, and completing and signing the many dozens of sales documents necessary to finalize a sale. If a single owner is unable or unwilling to participate in the process and provide the necessary agreements and/or signatures that owner can effectively veto a sale.

When co-owners disagree—or when one is missing or uncooperative—a Partition Referee may be needed to manage the process.

In the case of Partition by Sale, the Partition Referee is appointed by the Court to conduct the sale and perform duties such as: hiring a broker, setting the listing price, handling offers and documents, and signing all documents necessary to complete the sale on behalf of the owners.

In the case of Partition in Kind (i.e., physical division of the property), the Partition Referee manages the division of the property.

Partition referees can also be appointed to investigate and make recommendations to the court regarding liens against the property and to gather evidence and make recommendations to the court about reimbursement and accounting claims.

Partition referees ensure the sale or division happens fairly and appropriately and follows the requirements of the court’s orders, even when co-owners can’t or won’t cooperate.

Why Choose Partition Referee Matthew Taylor?

Matthew Taylor is both a licensed attorney and real estate broker with over 30 years of experience. He has successfully managed the partition of hundreds of properties throughout California, including single-family homes, duplexes and small multifamily units, 40–80 unit apartment buildings, vacant land, ranches, and golf courses, as well as commercial and mixed-use properties.

Matthew Taylor and his team operate in both Southern California and Northern California and Matthew Taylor has sold properties in all major counties, including San Diego, San Francisco, Santa Barbara, Riverside, Sacramento, Santa Clara, Contra Costa, Kern, Fresno, Los Angeles, Ventura, Orange County, Alameda, Sonoma, and San Bernardino.