Legal Question in Real Estate Law in California

Re: Reimbursement On Partition

First, it is theoretically possible for three people to be joint tenants, but that's quite unusual. More likely, you are tenants in common.

OK, when it's time to sell, each co-owner can independently sell his 1/3 interest, nothing more. Since few buyers would want to own 2/3 of a house, as a practical matter you won't be able to sell unless everyone cooperates.

If all three owners agreed to sell, but one wanted an unfair percentage, neither the buyer nor the escrow company is going to be much help in putting the right amount of net proceeds in each seller's pocket. Perhaps you could agree to have an arbitration over the division of the sale proceeds. That's possibly your best bet from the standpoint of cost and speed.

If the three of you can't decide on a means of selling and dividing the money, bu agreement or arbitration or the like, a partition lawsuit is your last resort. It's expensive and slow. But if necessary, someone can file the suit and use that as a lever to force the other to negotiate.

In a partition suit, several things can happen. Often, one of the owners agrees to sell to the others, and the suit is dismissed. Sometimes, the owners agree to a private sale, not under court supervision. Then, of course, some partition cases go all the way to a final judgment requiring sale under court supervision. When that happens, the court (or a court-appointed referee) will decide how much of the net proceeds of sale should, in fairness, go to each of the quarreling sellers.

Re: Reimbursement On Partition

You will receive credit for your extra payments as long as you have a record of them. You can request a partition by appraisal, which allows the court to set a "purchase price" for the interests in the property. Since the process is long and cumbersome, most parties reach a "buy-out" or joint sale settlement before the end. Find an attorney to get the ball rolling and he or she can explain your options in more detail.