Navigating Partition & Sale Actions in NYC Real Estate

Co-ownership of real estate is much more common in NYC than in other parts of the country. Due in part to the higher-than-average cost of real estate, NYC investors may take advantage of opportunities to purchase real estate in common with at least one other person or entity.

An example that readily comes to mind is when two or more people come into ownership of a home or other property. This could take place via the inheritance process, with or without a will.

While this arrangement makes ownership more accessible to more people, it also comes with its fair share of challenges. The Knox Law Group counsels clients on how to manage a property that is owned in common. When it comes time to partition and sell an individual share of the property, our team of real estate litigation professionals is here to guide clients, as well.

Why Does Owning Real Estate in Common with Another Person Complicate Matters?

Depending upon the circumstances under which the real estate comes to be owned by multiple people, things can get tangled and a bit messy. Disputes are common, especially in situations where the parties did not voluntarily enter into an agreement to commonly own the real estate.

Suppose that co-owners of a single-family home cannot come to an agreement on what to do with the property, how it should be managed, or how income and expenses should be shared.  Negotiation can only take you so far in many cases. When a consensus cannot be reached, any owner may ask the court to sever the parties’ joint ownership in the underlying property (most commonly done by forcing a sale).  This is known as a partition under New York state law.

Dividing Property Physically and Legally

Courts may be able to divide certain types of real estate physically. This is done more commonly in situations where raw or undeveloped tracts of land are at issue. Simply splitting a four-acre plot into two, two-acre plots is simple enough to figure out. From there, the owner who wants to sell the land may do so without affecting the owner who wishes to stay.

Unfortunately, physical division of property is rare in NYC. While large parcels of raw land can be somewhat simple to divide, it is impractical to divide houses, co-op/condominium units, apartment buildings, or even smaller undeveloped lots.

This is where a legal property division can make more sense. Co-owners can agree to permit the sale of a portion of the property to existing co-owners or to another person altogether. When ownership is a pure investment, this type of arrangement frequently satisfies all parties involved. More often, however, existing owners may not want to share ownership with a complete stranger, and a complete sale of the property will be necessary.

In addition to selling or dividing the property, the court will have the power to review the income and expenses related to the property and ensure that each party has paid/received their fair share.  This is known as an accounting under New York law and is a necessary part of every partition action.

Contact an Experienced NYC Partition and Sale Attorney Today

Filing a partition action will result in a judge being able to compel the sale of a property and also ensure that all parties get their fair share according to their ownership interests and expenses paid.

Rather than leaving this sort of arrangement up to chance, contact the Knox Law Group today. A consultation where you can learn the details of a partition and sale based on your specific circumstances is only a phone call away.