When two or more people own real estate together, disagreements about the property can sometimes become impossible to resolve. One owner may want to sell while another refuses. Family members may inherit property together but have different financial goals. Business partners may disagree about how to manage an investment property.
At Gil & Kadachnikov, our attorneys help New York property owners resolve complex co-ownership disputes, including partition actions. Whether the issue involves inherited property, investment partners, or disagreements between co-owners, the firm works with clients to understand their legal rights and pursue solutions that protect their financial interests.
In New York, the legal remedy for this situation is called a partition action. A partition action is a lawsuit that allows a co-owner of real estate to ask the court to divide the property or order its sale so that each owner can receive their share.
What Is a Partition Action in New York?
A partition action in New York is a lawsuit filed by a co-owner of real estate asking the court to divide the property or order its sale. Partition actions are governed by New York Real Property Actions and Proceedings Law (RPAPL) Article 9. When the property cannot be physically divided, courts usually order a partition by sale, meaning the property is sold and the proceeds are distributed among the owners according to their ownership interests.
A partition action allows a co-owner of real estate to ask a court to divide property or force its sale. When the property cannot realistically be divided, courts usually order a partition by sale and distribute the proceeds among the owners after expenses and financial adjustments.
Can One Owner Force the Sale of Property in New York?
Yes. In many situations, one co-owner can force the sale of property in New York by filing a partition action. When two or more people own property as tenants in common or joint tenants, any owner generally has the right to ask the court to divide the property or order its sale.
Partition Actions and Inherited Property Disputes in New York
Partition actions frequently arise in inherited property disputes, particularly when siblings or other family members inherit a house or investment property together. When heirs cannot reach an agreement about selling or keeping the property, a partition action may be filed so the property can be sold and the proceeds divided.
Who Can File a Partition Action in New York?
Any person who owns an interest in real property as a tenant in common or joint tenant generally has the right to bring a partition action. These disputes often arise between family members, unmarried couples, business partners, or investors who jointly own real estate.
What Does a Partition Action Do?
When a partition action is filed, the court generally decides whether the property should be physically divided or sold. In most situations, the court considers the nature of the property and whether division is practical.
Common outcomes include:
- Partition by Sale: In most New York cases, the court orders the sale of the property and divides the proceeds among the owners according to their ownership interests. This is common when the property is a single-family home, condominium, or small multi-family building that cannot be physically divided.
- Partition in Kind: In some situations, the court may physically divide the property between the owners. This typically occurs with larger parcels of land that can be separated into individual lots.
Each case is unique, and the court will evaluate the circumstances of the property and the ownership interests involved before determining the appropriate outcome.
How the Partition Process Works in New York
Partition actions follow a structured legal process through the court system. While every case may vary slightly, the process typically includes the following steps:
- Step 1: Filing the Partition Lawsuit: One co-owner files a complaint in New York Supreme Court asking the court to partition the property.
- Step 2: Determining Ownership Interests: The court reviews deeds, title records, and other documents to determine each party’s ownership interest.
- Step 3: Appointment of a Referee: Courts often appoint a referee to oversee aspects of the process, including supervising the sale and reporting back to the court.
- Step 4: Court-Ordered Sale: If the court orders a partition by sale, the property is usually sold through a court-supervised auction or judicial sale.
- Step 5: Distribution of Proceeds: After the sale, the proceeds are distributed among the owners according to their ownership interests, subject to any adjustments ordered by the court.
Because the process can involve litigation and court supervision, having a clear understanding of each step can help property owners prepare for what may lie ahead.
Financial Accounting Between Co-Owners
Courts may adjust the final distribution of proceeds based on mortgage payments, property taxes, maintenance costs, rental income, or improvements made by one of the co-owners.
A Practical Reality: Partition Sales Often Reduce the Property’s Value
From my experience serving as a court-appointed referee in New York partition actions, disputes between co-owners can sometimes harm everyone involved. Court-supervised sales may attract fewer buyers than traditional listings, and litigation costs such as court fees, referee fees, and legal fees are often deducted from the sale proceeds.
Resolving Real Estate Co-Ownership Disputes in New York
Partition actions can become complex when disputes arise over ownership interests, financial contributions, or management of the property. Understanding how partition laws work in New York can help co-owners evaluate their options and determine the best path forward when disagreements arise.
Speaking with an attorney early in the process may help clarify legal rights, identify possible solutions, and avoid costly mistakes during litigation. Gil & Kadachnikov represents clients throughout New York in partition actions and real estate ownership disputes, helping property owners pursue fair outcomes when co-ownership conflicts cannot be resolved privately.
Author’s Note: The author has served as a court-appointed referee in New York partition actions, overseeing the sale of disputed real property and the distribution of proceeds in cases before the New York Supreme Court.
If you’re dealing with a co-ownership dispute and need guidance on a New York partition action, reach out to Gil & Kadachnikov to explore the next steps and protect your financial interests.
Frequently Asked Questions About Partition Actions in New York
Can a co-owner force the sale of a house in New York?
Yes. A co-owner can often force the sale of property by filing a partition action in New York Supreme Court.
How long does a partition action take in New York?
Partition actions may take several months to more than a year depending on the complexity of the dispute and the time required to sell the property.
Does a partition sale get less than market value?
Often it does. Court-supervised sales may attract fewer buyers than traditional listings, and litigation costs are typically paid from the sale proceeds.