California Enacts Uniform Partition of Heirs Act
The California legislature has enacted a brand new law known as the Uniform Partition of Heirs Property Act which became effective January 1, 2022, and applies to partition actions filed on or after January 1, 2022 (the “Act”).
The Act makes significant changes to the rights of parties in partition actions when the subject real property is either co-owned by family members, or was received from a family member.
The Act Creates a Right of Buyout in Family Owned Properties
I have handled many many partition actions. Of all the calls I have received from prospective partition clients, close to 90% of those disputes were between family members. Prior to the enactment of the Act, a defendant who was sued for partition of real property, might have had an opportunity to buyout the suing plaintiff, but there was no right to a buyout, which meant that if the plaintiff was unwilling to agree to a buyout, the likely outcome would have been a court supervised sale.
Now with this new Act, if the property is co-owned by family members, or if all or a portion of the property was received from a family member (“Heirs Property”) , then the defendant in a partition action now has a right to buyout the plaintiff’s interest in the property.
The Act is a Game Changer in Co-Ownership Disputes of Family Property
The Act is brand new, so how it impacts affected properties is yet untested, but it is very likely that in cases that involve Heirs Property to settle quickly, even before a lawsuit is filed, and if it does not settle, a defendant who wants to keep the property by buying out the plaintiff’s interest, will be able to do so and avoid a sale of the subject property. If you are a defendant of Heirs Property, this will be a very valuable tool for you.
The Act, which sets out what qualifies as a Heirs Property and the procedures to follow to buyout a plaintiff’s interests in Heirs Property, can be found starting at California Code of Civil Procedure § 874.311.
Understand the Law and Your Rights
If you co-own property with a relative or received title from a relative, and you have been served with a partition lawsuit or are considering filing a partition lawsuit, you should consult with an attorney that is aware of and understands the Act.
I regularly represent clients in negotiating buy-out agreements and in partition actions. I assist clients in the East Bay, California, in Oakland, California, in Walnut Creek, California, and throughout the Bay Area.
If you have questions or need representation by a real estate attorney about a partition action or the need to negotiate a buyout agreement between co-owners, please feel free to contact me to discuss your case, the Act, or to arrange for a consultation. I can be reached at (510) 465-0025.