What is the New Partition Law in California?

When beneficiaries inherit a property together, it is an unfortunate truth that disputes can quickly arise regarding what to do with that property. To further complicate matters, the loss of a parent often compounds the intense emotions that arise around these situations. It is common for one sibling to want to sell when others jointly own the property. Even if three beneficiaries want to hold onto the property and one doesn’t, that solitary beneficiary can attempt to force the sale through a partition action lawsuit, causing irreparable damage to their relationships with their siblings, potential financial damage to the other siblings, and the loss of a property with deep sentimental value. 

However, a law implemented at the start of 2023 has provided beneficiaries with expanded rights to help them hold onto property in situations where one beneficiary is attempting to force the sale of a property with a partition action lawsuit. Read on to learn about this recent law change. 

What is the New Partition Law in California

Passed in July 2022 and implemented on January 1, 2023, the Partition of Real Property Act has transformed the landscape for beneficiaries and their rights when they inherit property jointly but a beneficiary decides to force its sale with a partition action lawsuit. 

This law expands on the Uniform Partition of Heirs Property Act adopted by California in 2021. The Partition of Real Property Act creates a “right of first refusal” by allowing beneficiaries to buy the property at an appraised value as supervised by the court when another beneficiary has forced its sale with a partition action. 

This new law gives a quicker route to resolution and provides non-partitioning parties with additional opportunities and avenues to buy out their co-owners. It also gives all parties a way to move on from co-ownership amicably without enduring costly litigation. 

Related Article: Can a Beneficiary Stop the Sale of a Property in California?

Examples of the Partition of Real Property Act in Action

For many, property like a family house is an asset that carries substantial monetary and sentimental value, so these situations are delicate. Still, understanding this landmark change to probate law is complex. Let’s explore examples of this new law to illustrate its implications. 

Let’s start with an example involving an elderly parent who passed away with three adult children. The parent created a living trust and named all children equal heirs, and the children inherited the family home together in equal shares. 

The children have vastly different ideas for what to do with the home. Two want to hold onto the property, with one citing its potential as an investment property and the other expressing a strong sentimental attachment to it as their childhood home. The third child, conversely, wants to sell.

Under the former Uniform Partition of Heirs Property Act, the sibling who wanted to sell had considerably more leverage than the others. By simply filing a partition action lawsuit, they could force the sale of property unless it could be physically divided or they could reach an agreement through alternative dispute resolutions.

However, under the new Partition of Real Property Act, when one heir files a partition action to force the sale, the other heirs receive the first chance to buy out the property at fair market value as assessed by an independent appraisal. The buying parties must still make a timely decision and promptly deposit funds. 

Per this recent law change, heirs and beneficiaries who want to keep an inherited property that another beneficiary is forcing the sale of will have a fair chance to arrange a buy-out before the property is sold to retain their stake in it. 

“This law change is set to change the legal landscape when there are siblings who have inherited property jointly but disagree about what to do with it. Before, the sibling who wanted to sell had all the leverage with the use of a partition action lawsuit. However, this law change has been an equalizer of sorts and has added some balance to that dynamic.”

Ali Nicolette, Associate, Gokal Law Group

Related Article: Taking Siblings to Court: Can Siblings Force the Sale of Inherited Property?

Expert Guidance for Navigating the Partition Actions 

Probate law is incredibly complex, and understanding how this recent law change impacts and expands your rights as a beneficiary is essential. If someone is forcing the sale of inherited property with a partition action, it is imperative to know your rights and legal recourse. In many instances, seeking an alternative dispute resolution (ADR) through mediation is an ideal solution. If you cannot reach an amicable agreement with your siblings, working with an attorney is crucial to defend your rightful inheritance. 

Whether you need mediation or expert assistance navigating this complex legal landscape, at Gokal Law Group, we can help. Visit our Contact Page to schedule a consultation for support and counsel to help you and your siblings reach a place of closure and healing. 

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