A partition is a legal process in which co-owners of a property divide the property into separate parts, either physically or by transferring ownership rights to one or more of the co-owners. Partitions can be either in kind or by sale.
In a partition in kind, the property is physically divided into separate parts, and each co-owner receives ownership of a specific part of the property. For example, if a piece of land is owned by three co-owners, a partition in kind might involve dividing the land into three equal plots and giving each co-owner ownership of one of the plots.
In a partition by sale, the property is sold and the proceeds from the sale are divided among the co-owners. For example, if a house is owned by three co-owners, a partition by sale might involve selling the house and dividing the proceeds among the co-owners.
There are several common settlement strategies for a partition by sale. One strategy is for the co-owners to agree on a fair price for the property and sell it to an outside buyer. Another strategy is for one of the co-owners to buy out the other co-owners' interests in the property. This can be done through a negotiated sale or through a court-ordered sale if the co-owners cannot agree on a price.
Another option is for the co-owners to agree to a public auction of the property, with the highest bidder becoming the new owner. In this case, the proceeds from the sale would be divided among the co-owners.
Regardless of the settlement strategy chosen, it is important for the co-owners to carefully consider the terms of the partition and seek legal advice to ensure that their rights and interests are protected.
This is not legal advice, if you have a question concerning a partition, please contact our office and schedule a consultation at (202) 499-2403 or 1(833) CALLJKW (225-5559).