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Guide to Partition Actions in NYC
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The Complete Guide to Partition Actions in NYC
Owning real estate with another person can be a good financial arrangement—until disputes start over how to manage, sell, or use the property. When co-owners cannot agree, New York law allows a co-owner to bring a lawsuit for partition—asking the court to divide the property (if feasible) or order a sale and distribute the net proceeds
Whether the property was inherited, purchased with a business partner, or acquired with family members, the court’s role is to ensure that each owner receives their equitable share. Understanding how partition law applies in NYC is important given the city’s complex real estate market, high property values, and courts’ specific procedures.
Let’s explore how partition actions work in New York City, what to expect during the process, and when it’s time to seek legal help.
What Are Partition Actions?
A partition action is a legal proceeding that co-owners of real estate can initiate when they cannot agree on the management, use, or sale of the property. It is a formal request to the court to intervene and resolve the dispute. The court can either physically divide the property (if feasible) or order its sale, with the proceeds distributed among the owners according to their ownership interests.
Partition actions are a common remedy in situations where one owner wants to sell the property, but others do not. They are also frequently used when inherited property is involved, and the heirs cannot agree on what to do with it.
In most cases, a partition action results in a sale of the property because physical division is often impractical, especially in New York City. The court will appoint a referee to oversee the sale process, ensure it runs fairly, and report back to the court. Once the sale is complete, the court directs how the proceeds are distributed.
How to File a Partition Action?
- Draft a verified complaint describing the property and each party’s interest (RPAPL § 905).
- Commence the action in the Supreme Court in the county where the property is located.
- File to obtain an index number
- Serve the summons and complaint under the CPLR.
- Wait for the defendants’ answer; the court will then determine whether partition in kind or sale is appropriate.
What Are Buyout Options in Partition Actions?
In some cases, one or more co-owners may wish to keep the property rather than sell it. This can be achieved through a buyout, where one owner purchases the other owners’ shares in the property.
A buyout can be a good solution if one owner has a particular attachment to the property or if the owners believe they can get a better price by selling the property at a later date.
The buyout price is typically determined by an appraisal of the property’s fair market value. Each owner’s share of this value is calculated according to their ownership interest.
Co-owners can agree to a private buyout. If the property is heirs’ property, the UPHPA gives co-tenants a statutory right to buy out a selling co-owner within the lawsuit before any sale goes forward.
What Is the Court Process for a Partition Action Lawsuit?
Filing a partition action in New York City involves several key steps:
- Initial Filing: The process begins when you file a summons and verified complaint with the court.
- Establishing Liability: The court first determines whether partition is appropriate and confirms each party’s ownership interest in the property.
- Interlocutory Judgment: Once liability is established, the court issues an interlocutory judgment. This judgment will either:
- Appoint commissioners to physically divide the property (if the property can be fairly split), or
- Appoint a referee to oversee the sale of the property (if physical division isn’t feasible)
- Referee’s Report: If the property is sold, the referee conducts the sale and submits a detailed report to the court about the sale process and proceeds.
- Court Confirmation: The court reviews and confirms the sale to ensure it was conducted properly.
- Final Judgment: The court enters a final judgment ordering how the sale proceeds will be distributed among the co-owners based on their ownership interests.
Alternatives to Disagreements on the Sale of a Property
While a partition action is a reliable tool for resolving disputes among co-owners, it’s not always the only solution. Other alternatives may be more appropriate.
- Negotiation or mediation: In many cases, disputes among co-owners can be resolved through a neutral third-party mediator, who can facilitate these discussions and guide the parties toward a mutually acceptable solution.
- Buyouts: If one owner wants to keep the property, they can offer to buy out the other owners’ shares. This can avoid court proceedings and allow for a quicker resolution.
- Sell the property without involving the court: This can save on legal fees and court costs and give the owners more control over the sale process, but even a direct sale could benefit from a sale agreement to safeguard your rights.
When to Seek Legal Advice
Partition actions can be time-consuming and require knowledge of real estate law and court procedures. Real estate law is complex, and the stakes in a partition action can be high.
Depending on your case, a partition action might not be the most effective solution, but each alternative has its own advantages and disadvantages, so it’s important to consider all options before deciding on a course of action. An experienced partition action attorney can provide advice and guidance in this regard.
Frequently Asked Questions
What is a partition action?
A partition action is a lawsuit a co-owner brings to end co-ownership—either by dividing the property (if feasible) or, when a fair split would cause great prejudice, by court-ordered sale and distribution of the net proceeds.
Can any type of property be divided with a partition action in NYC?
Most real property (homes, condos, multi-family/buildings, land) can be partitioned. Co-op interests (shares + proprietary lease) are personal property, but courts permit partition-type relief. Property held by spouses as tenants by the entirety generally isn’t partitioned during marriage.
How long does a partition action take?
Time varies widely with contested issues (title, accounting, sale method, UPHPA steps). State there’s no fixed timeline and flag factors (number of parties, accounting, buyout, market sale).
Can I avoid a partition action?
Yes, there are several alternatives to a partition action that may be more appropriate depending on your circumstances. These include negotiation or mediation to resolve disputes among co-owners; a buyout, where one owner purchases the other owners’ shares in the property; or a voluntary sale of the property by all owners.
What usually happens in partition actions for NYC urban properties?
In New York City, partition actions involving urban properties often result in a court-ordered sale (often through auction) rather than a physical division of the property. This is because most urban real estate cannot be fairly divided among co-owners without significantly reducing its value or usability.
Can one co-owner block a sale?
A single owner generally can’t veto a partition remedy. But the court will first consider whether a buyout or partition in kind is appropriate (especially in heirs-property cases) and whether a sale would cause undue prejudice.
How are proceeds divided in partition actions?
Once the property is sold, the proceeds are divided among the co-owners according to their respective ownership interests, as determined by the court. However, before the distribution, the court will ensure that all outstanding expenses related to the property and the sale are paid.
Can rental income or expenses be factored into partition actions?
Yes, in New York City partition actions, rental income and expenses are factors that the court considers when determining the fair distribution of proceeds among co-owners. When a property is generating rental income, the court may require an accounting of all income received during the period leading up to the partition sale. This includes rent payments collected from tenants and any other revenue related to the property.
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SCOTT B. RICHMAN, ESQ.
Managing Member & Founder
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on AvvoMr. Richman is the Managing Member and Founder of Richman Law Firm PLLC. In his role as Managing Member, Mr. Richman oversees the day-to-day operations of the firm and handles the litigation of the most complex legal matters across a vast array of practice areas and disciplines.