Partition Actions Involving Florida Real Estate: What Co-Owners Need to Know

If you co-own real estate with someone else in Florida, disputes regarding the property can present a variety of challenges. The same is true if you have a disagreement unrelated to the property and decide it is best if you go your separate ways. In both of these scenarios, the best path forward will often be to initiate a partition action with the help of an experienced Miami real estate attorney.

What is a Partition Action?

A partition action is a formal legal proceeding that is used to divide shared interests in a single piece of real estate. While co-owners can go their separate ways amicably when they are on the same page, a partition action provides a path forward when this isn’t the case.

There are three types of partition actions under Florida law:

• Partition By Physical Division – A partition by physical division results in each co-owner independently owning a portion of the previously shared property. The property itself is divided, and then each co-owner receives a 100 percent interest in an undivided portion. However, partition by division is rarely used. This is because (i) equally dividing a piece of real estate can prove challenging (if not impossible), and (ii) dividing one parcel into two can diminish the overall value of the property, which is something that it is generally in all parties’ best interests to avoid.
• Partition By Sale – A partition by sale involves selling the co-owned property and then dividing the sale proceeds. This is the most common type of partition action by far. It provides for the cleanest separation, and it ensures (or at least should ensure) that the co-owners are getting fair market value for the property.
• Partition by Appraisal – A partition by appraisal is similar to a partition by sale, except instead of selling the entire property to a third party, one co-owner buys the other co-owner’s share. After one co-owner initiates the partition action, the court orders an appraisal, and then this appraisal is used to set the purchase price.

To be clear, these options are also available without going through a formal legal proceeding. If co-owners of real estate agree that the property should be divided or sold, or if they agree that one co-owner should sell to the other, they are free to do so. A partition action simply provides a mechanism for forcing one of these outcomes when co-owners disagree about how to move forward.

When Does a Partition Action Make Sense?

So, when does a partition action make sense? As we have alluded to above, a partition action generally makes sense when co-owners of a piece of real estate cannot find a mutually agreeable path forward. In most cases, this involves one of the following scenarios:

• The co-owners disagree on whether the property should be sold;
• The co-owners disagree on the fair market value of the property or,
• The co-owners simply aren’t able to work together to find a solution that works for both of them.

Partition actions are common in disputes among business partners. The need for a partition action may also arise in connection with a divorce or separation or during (or after) the administration of a deceased family member’s estate. Regardless of the circumstances involved, pursuing a partition action in Florida involves the same legal processes and procedures.

How Do You Pursue a Partition Action?

Pursuing a partition action starts with filing a lawsuit in the appropriate court. Under Florida law, a lawsuit to initiate a partition action must be filed in the county where the property in question is located. In most cases, the judge will initially appoint a referee to oversee the partition process, including the process of obtaining an appraisal, if applicable.

While a partition action is pending, each co-owner has the opportunity to present their case for either keeping or selling the property and for determining the property’s value. Each party can also challenge the property’s appraisal if necessary. There are defenses to partition as well, although, practically speaking, denial of partition requests is extremely rare.

It is also important to note that filing a partition action does not prevent the parties from settling their dispute out of court. In fact, referees and judges encourage settlement whenever possible. While seeking a judicial resolution will be necessary in some cases, oftentimes, it will be in both parties’ best interests to work out a resolution. Not only does this reduce the costs involved, but it also avoids the inherent uncertainty of going to trial. When each party is represented by a Miami real estate attorney, the attorneys involved can often help facilitate good-faith settlement negotiations without emotional considerations getting in the way.

What Are the Alternatives to Partition?

What if you would rather avoid going to court altogether? As we’ve discussed above, the only practical alternative to filing a partition action is to amicably resolve your differences regarding the property at issue. Even if your goal is to avoid going to court, hiring an experienced Miami real estate attorney is generally the first step. Your attorney can help you consider your options and communicate with your co-owner (or your co-owner’s attorney) on your behalf, and if you are able to work out a resolution, you will need to work with an attorney to finalize your partition or sale.

While dealing with this type of situation can be both stressful and frustrating, there are options available, and there is a clear path forward if you need to take legal action. If you need to know more about partition actions in Florida, you should consult with an attorney as soon as possible.

Discuss Your Situation with a Miami Real Estate Attorney in Confidence

If you need to know more about pursuing a partition action in Florida or the options you may be able to use to avoid going to court, we invite you to get in touch. To discuss your situation with a Miami real estate attorney at Edelboim Lieberman in confidence, please call 305-768-9909 or request a free initial consultation online today.