Legal Question in Real Estate Law in California
Partition With Land Improvements
I am co-owner of a nine-acre property which includes a 90-year old house in perfect conditon. My co-owner planted a four-acre vineyard with his own money five years ago on part of the property. He now wants to end the relationship and is planning to force a partition. He has had the property appraised (as have I) and is deducting the cost of planting the vineyard from the shared equity of the property.
Should this go to trial, will a judge agree with that? Will the judge force a sale or let him buy me out of the property?
Does it matter if the property is jointly owned (it was at purchase)?
2 Answers from Attorneys
Re: Partition With Land Improvements
A partition case is a two-step process. In the first phase, the court will adjudicate the plaintiff's right to force a partition and determine whether it should be by physical division (very uncommon nowadays due to subdivision laws and the smaller and highly improved nature of most parcels) or by sale and division of the net proceeds. In the second phase, usually handled by a court-appointed referee, the economics of the sale and division are worked out. A great majority of partition cases are settled prior to final judgment, and usually before the property is ever put on the market. There are exceptions.
One of the first factual matters a court or referee would inquire into would be whether the co-owners had a contract, written, oral or implied, that modifies the usual application of principles of law and equity, or whether either co-owner intended to make a gift to the other.
If these matters are resolved in the negative, the court or referee should divide the net proceeds according to equitable ownership of title, usually but not always per the deed, after making adjustments for unequal contributions for mortgage payments, taxes, insurance, maintenance and improvements.
Therefore, I would say your partner will probably get reimbursed for his costs, perhaps without interest, but will not get the current fair market value of the mature vineyard...that's probably your best-case scenario unless there is a gift or contract giving you a better result.
The court or referee will be concerned about getting best value overall, and if a buy-out of one co-owner by the other is offered and the price looks attractive, the court probably has the equitable power to oblige the offeree to sell. I will research this and get back to you.
I have just successfully concluded two partition cases in Sonoma County and would be pleased to consult with you and provide references. I also co-own a small vineyard.
Re: Partition With Land Improvements
Well it sounds like you don't have a written agreement which is not to your advantage. Anna partition action the court has substantial discretion in dealing not only with the property but whether it is sold or not in the financial situation regarding the same. Generally the judge looks to the intent of the parties both at the time that they purchased the property and subsequent occurrences such as the intent applicable to your co-owner of planting a vineyard on the property. There are too many issues here that have to be left unaddressed because of questions and space. The best thing I can say he was it off your sharing get an attorney who is an expert in real estate and he/she after you tell them all the facts and all the intent as you view it can give you alternatives and chances applicable to the situation. Do not do anything yourself as so far you've done enough to hurt yourself substantially. If you're co-owner has an attorney and you don't don't just sit there and wait.I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.