Legal Question in Real Estate Law in California

Re: joint real estate

You can, but the market for an interest is quite limited, especially if there is no written agreement with the co owner. What you may need to do is file a partition action which will force the sale of the entire property.

Re: joint real estate

It's legally permissible to sell a part interest in real estate to a stranger unless there is a right of first refusal, option, partnership or joint-development contract in effect between the co-owners. If such an agreement, express or implied, exists, then a sale of a part interest would very likely be a breach.

There is also the practical problem that a part interest isn't very desirable to buyers. If you sell a half interest, you very likely won't get 50% of the fair market value of the house, or anywhere near. One of the reasons is that shared ownership with a stranger is almost certain to create disharmony over right of possession (all part owners share the right to possess the entire property) and how the place will be operated, maintained, repaired, improved, resold and so forth.

If neither of you wants to buy the other out, or one is willing but unable, a better plan might be to sell the entire property and divide the net proceeds. A legal action called a partition lawsuit can be used by a co-owner to compel the sale of co-owned property and to have a court decide how the net sale proceeds should be divided between the former co-owners.