Definition

Partition Action

Also called: partition lawsuit, partition sale, forced sale of inherited property

A partition action is a lawsuit in which one co-owner of real estate asks a court to divide the property or, far more often with a house, order it sold and the proceeds split. It is the legal remedy when co-owners, typically heirs, cannot agree to sell or buy each other out.

Partition exists because no co-owner can be forced to stay in a shared property indefinitely. In most states any co-owner holding an undivided interest, a sibling who inherited a one-third share for example, can file, and the court will generally order a sale (partition by sale) when the property cannot be physically split, which is nearly always the case with a single house. The proceeds are divided by ownership share after the costs of the case, and the court can adjust for one owner having paid the taxes, insurance, or mortgage, or having lived in the house rent-free.

For families it is a last resort, and an expensive one: attorney's fees on both sides, a court-supervised sale that rarely achieves a retail price, and months of delay. A growing number of states have adopted the Uniform Partition of Heirs Property Act, which generally gives the other co-heirs a right to buy the filing owner's share at a court-determined appraised value before any forced sale. The practical use of partition is as leverage. Once everyone understands that a holdout cannot prevent a sale forever, a negotiated buyout or a joint sale to a cash buyer usually follows. This is general information, not legal advice; partition procedure varies by state.

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