By Brian Figeroux, Esq. | Editorial Credit: Andrey_Popov / shutterstock.com
A partition action is a legal mechanism commonly used when two or more co-owners of a property cannot agree on what to do with the property. In your case, since you own 50% of a property, and the other party also owns 50%, a partition action could be initiated if both parties cannot come to an agreement regarding the property’s future. This analysis will explore the nuances of partition actions in Kings County Supreme Court, New York, your legal options, and whether you can force the other party to sell their half or if negotiations are necessary.
- Understanding Partition Actions in New York
Partition actions in New York are governed by Article 9 of the Real Property Actions and Proceedings Law (RPAPL). A partition is a legal remedy designed to end joint ownership of real property when the co-owners are unable to agree on the disposition of the property. In essence, a partition action can compel the sale of the property or divide it, if feasible.
There are two main types of partition:
- Partition in Kind: This involves physically dividing the property, which is more common in cases where land can be easily divided (like farmland or large plots). However, in cases where dividing the property is not practical (for instance, with a single residential home), this type of partition is rare.
- Partition by Sale: This is the more common outcome in urban settings, particularly for properties like homes or condos. The court orders the property to be sold, and the proceeds are divided between the co-owners according to their ownership interests.
- Legal Steps for a Partition Action in Kings County
In your situation, since you own 50% of the property, and the other party owns the remaining 50%, if you cannot agree on whether to sell or retain the property, you or the other party may initiate a partition action in Kings County Supreme Court.
Steps to Initiate a Partition Action:
- Filing the Complaint: Either party can file a partition action with the court. The complaint must outline the property details, ownership shares, and the desire to partition the property.
- Court Evaluation: The court will assess the case to determine whether a partition in kind is feasible or if a partition by sale is more appropriate. In most cases involving residential property, a sale is likely because dividing a single home would be impractical.
- Order of Sale: If the court determines that partition by sale is the only reasonable solution, it will order the sale of the property. The property is typically sold at auction, and the proceeds are divided according to ownership shares, after deducting any debts, expenses, or fees related to the sale.
- Can You Force the Other Party to Sell Their Share?
In New York, you cannot directly force the other party to sell their half of the property unless you negotiate a voluntary sale agreement. However, you do have several legal options that could lead to a forced sale of the entire property under a partition action.
- Negotiation for Buyout: Before initiating a partition action, you might attempt to negotiate with the other co-owner to buy out their 50% share of the property. This could involve determining the market value of the home and offering to purchase their half at a fair price. This approach avoids litigation and may lead to an amicable resolution.
- Partition by Sale: If negotiations fail, you can file a partition action and request a partition by sale. In this scenario, you aren’t forcing them to sell only their half; instead, the entire property will likely be sold, and both parties will receive their share of the sale proceeds. This is often the outcome in residential property disputes where division of the property is impractical.
- Court’s Discretion and Consideration in Partition Actions
The court in Kings County will consider various factors before making a final decision in a partition action. These factors include:
- Impracticality of Division: In most cases involving residential property, the court is likely to order a sale rather than physical division, as dividing a single-family home would likely destroy its value.
- Rights of the Co-Owners: Both parties have an equal right to the property, so the court aims to provide a fair outcome by ensuring each party receives their share of the value.
- Outstanding Mortgages and Liens: If there are any mortgages or liens on the property, the court will take these into account. Proceeds from the sale will first be used to satisfy any debts associated with the property before the remainder is divided between the co-owners.
- Can You Keep the Property?
If your goal is to keep the property, here are your main options:
- Buyout: The most straightforward way to keep the property is by buying out the other co-owner’s 50% share. If you have the financial resources, you could offer a fair price for their share, which they may agree to, especially if they are not interested in continuing joint ownership or the hassle of litigation.
- Bidding at the Auction: If a partition by sale is ordered by the court, you have the right to bid for the property at the public auction. If you are the highest bidder, you can effectively retain the property. However, the risk here is that the property could attract other bidders, and the price could go higher than anticipated.
- Negotiate a Settlement: Prior to a court-ordered sale, you can negotiate with the other party to settle the case, possibly agreeing to a private sale where you buy their share, or they buy yours, avoiding the need for a public auction.
- Risks and Costs of a Partition Action
While partition actions are a powerful legal tool, they come with several risks and costs that should be carefully considered:
- Legal Fees: Partition actions can become expensive, especially if the case becomes contentious and requires extensive litigation. Attorney fees, court costs, and other expenses can quickly add up, reducing the final amount each party receives after a sale.
- Loss of Control: Once the court orders a sale, neither party has full control over the process. The property may be sold at auction for less than its market value, and both parties may end up with less than they had hoped for after costs and fees are deducted.
- Time-Consuming: Partition actions can take months or even years to resolve, depending on the complexity of the case and whether either party contests the process.
- Settlement and Mediation
Given the costs and uncertainties of litigation, courts often encourage parties in a partition action to explore settlement or mediation before proceeding with a full partition action. Mediation allows the parties to work with a neutral third party to negotiate an agreement that avoids court-ordered sale or division. This can be a faster, cheaper, and less adversarial way to resolve the dispute.
- Conclusion: Weighing Your Legal Options
In summary, while you cannot directly force the other party to sell their half of the property without their agreement, you do have the option of initiating a partition action in Kings County Supreme Court. This can lead to a forced sale of the entire property, with both parties receiving their respective shares of the proceeds. However, the process can be expensive, time-consuming, and stressful, so it is often advisable to explore other options like negotiation, buyout, or mediation.
Your best course of action depends on your financial capacity and willingness to negotiate with the other co-owner. If your goal is to retain ownership of the property, negotiating a buyout or bidding at the auction may be the most practical solutions.