Sometimes partition actions are necessary when parties jointly own real estate. Partition actions are disputes between co-owners of properties who cannot decide on the course of action for the land.
The situation might arise from the inherited property, business interests or couples that purchase property together and split up without marrying. If you jointly own a property, continue reading to learn more about partition actions.
Uniform partition of heirs property act
In 2019, New York enacted the Uniform Partition of Heirs Property Act (UPHPA). The act aims to protect people from losing their inherited property to real estate investors with a fractional interest in the property. The investors sought out vulnerable families who did not have estate plans and received their property from intestacy. However, this law only protects heirs’ property, which means 20 percent or more of the property belongs to an inheriting relative.
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CALL NOW TO SCHEDULE A CONSULTATION 718-232-1250Potential partition actions
If you jointly own property not protected by the UPHDA, there are several ways to settle a partition action. A simple option is dividing the land, giving each owner their own share. If you cannot separate the property, a licitation partition sells the property and divides the proceeds among the owners.
Owners who do not want to sell the property can buy out the other parties. New York requires mediation before any forced sale occurs, and the sale must take place on the open market to ensure fair market value.
Co-owning property does not always work out. Fortunately, legal measures are in place that help property owners walk away with some form of compensation.
