Partition Proceedings: How to Resolve Co-Ownership Disputes
When multiple individuals share ownership of a property and cannot agree on its use or what to do with the property, a partition action is a potential remedy that can resolve the issue. In New York, a partition action is a legal proceeding undertaken by one or more co-owners of a property to divide his or her interest in the property.
Article 9 of the Real Property Actions and Proceedings Law (“RPAPL”) governs partition actions and provides joint owners of a property who cannot agree on how a property should be handled with the remedy to seek the division of the jointly owned property, either by physically dividing it (i.e., a partition in kind) or by selling the property and dividing the proceeds (i.e., partition by sale). Partitions can be commenced by a co-owner who holds title to the property as a joint tenant or tenant in common, but an action will not survive if title is held as tenants in the entirety.
Starting a partition action is accomplished by filing a lawsuit (i.e., summons and complaint) in New York State Supreme Court. Under RPAPL 905, the complaint must describe the property with reasonable certainty and specify the rights, shares, and interests of each of the parties who have ownership interests in the property. If a party or the right or interest of a party is unknown or uncertain, that must be set forth in the complaint. RPAPL 905 also requires the complaint to state whether the parties own any other properties in common.
Once the action is filed and has proceeded through the initial stages, the court will review the case and determine whether the property can be divided physically or whether it should be sold with the net proceeds divided equally among the co-owners. Typically, partitions do not result in the physical division of property because it is often impracticable. Instead, if a partition is granted, it will normally result in a sale of the property under the guidance of the court or a court-appointed referee, who will coordinate the sale of the property and then distribute the net proceeds equally between the various owners. The court will also evaluate any contributions (i.e., mortgage payments, renovations, upgrades, etc.) that were made by each individual and determine set-offs that could impact an owner’s share.
If you’re a co-owner of a property in New York struggling to come to an agreement with your fellow owners, a partition action may be the solution you need. By understanding the process and requirements, you can take the first step towards resolving the dispute and moving forward with your life. Consult with a qualified and experienced litigation attorney to discuss your options and determine the best course of action for your specific situation.
This is not intended to be legal advice. You should contact an attorney for advice regarding your specific situation.
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Gregory Picciano is senior counsel at J&G Law, concentrating on general civil litigation, commercial litigation, and construction litigation.
He can be reached by phone at 845-764-9656 and by email.