Legal Question in Real Estate Law in California

I own a small apartment building with a friend as tenants in common. (50% each). We have owned it for 30+ years and I would like to sell it and move on. My friend refuses to consider a sale and does not want to purchase my half even at what I consider to be an under market price. I've also proposed to buy his half with the idea that I would sell it in total after acquisition. He refused to even look at this option also. As you can imagine no outside person will want to purchase just my half of the building. My question is can he continue to hold me hostage or can I force the sale of this property via the courts if necessary?

Thanks,


Asked on 10/19/10, 2:17 pm

2 Answers from Attorneys

Yes, you can force a sale by filing an action for "partition" of the property. In the old days the court would take a large piece of jointly owned land and literally partition it. With modern land use and subdivision laws in place that is no longer possible, nor would it be possible with a single building, so the courts would then order a partition by sale, and divide the proceeds. You may be wrong,however, that no one would be interested in buying your half. If your partner would be cooperative in entering into a new partnership with a buyer in order to avoid having to buy you out, or being forced to sell, there might very well be investors interested in a deal. I may even know some. So if your partner would consider that option rather than face a partition action, let me know specifics about the property and I'll see if I can help.

Read more
Answered on 10/24/10, 2:30 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Most co-owners don't want strangers as "partners." I think you'd have a fiduciary duty to notify your co-owner of your intention to sell your half, and this alone might kindle some interest in making a deal with you.

Also, just filing a partition suit will often result in an out-of-court settlement well before trial, or at least a renewed willingness to bargain on the part of a once recalcitrant co-owner.

If your co-ownership for 30+ years is legally a business partnership, which it could perhaps be even without an explicit partnership agreement or even a conscious intention to be partners, the laws governing its dissolution and winding up, including disposition of the property, are significantly different than with a garden-variety partition of property co-owned by non-partners. The way title is held is not necessarily dispositive. A lawyer familiar with partnership law as well as real-property (partition) law should assist you in deciding the legal nature of the co-ownership.

Read more
Answered on 10/24/10, 2:50 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California