California Partition Referee / Receiver
ANAND LAW serves as court-appointed partition referee in throughout California. We manage and sell all types of properties, including single-family residential, multi-family, apartments, and vacant land. We also offer Partition Mediation services.
ANAND LAW is composed of attorneys, accountants, and real estate brokers who bring a breadth of experience and knowledge to these roles. Our extensive litigation and property law experience allow us to resolve disputes in a neutral and expedient manner.
EXTENSIVE EXPERIENCE & NETWORK
We have counseled and represented parties in connection with real property ranging in value from $300,000 to $25,000,000, including residential properties, multi-units, and apartments. We have successfully resolved actions related to analysis of title history/recorded documents, complex title issues (e.g. lien priority disputes, reattachment of junior liens wiped off by foreclosure of senior lienholder, leasehold vs. mortgage priority), partition, Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), construction, and broker duties.
We have a network of agents throughout California which allows us to provide hyper-localized expertise of the markets, and maximize value for you and your clients. We also routinely work with a variety of developers, contractors, brokers, agents, investors, family offices, experts (including construction, geology, and handwriting), appraisers, and notaries.
APPOINTING THE RIGHT PARTITION REFEREE IN CALIFORNIA
When seeking the appointment of a partition referee, it is important to find a firm that has knowledge of property law, litigation, and real estate markets. ANAND LAW has in-depth knowledge of all three, which allows us to resolve partition disputes quickly and fairly for all parties involved.
We have experience to deal with any issue that may arise in a partition action, including: corporate ownership, sale of attendant business, unlawful detainer (evictions), quiet title, boundary disputes, TIC properties, tenant properties, unexpired leases, hazardous materials, code violations, mechanics liens, unrecorded easements, and HOA regulations. We ensure that all potential pitfalls are accounted for in order to resolve your situation with finality.
WHAT DOES A PARTITION REFEREE DO?
A partition referee is a neutral third party appointed by a court to oversee the partition or division of real or personal property. Partition referees are appointed in partition actions where co-owners are segregating and terminating their common property interests. In California, joint owners of real property may file a lawsuit seeking to have their joint interest in the property partitioned.
One co-owner of the property in dispute will file a complaint with the court, which begins an action of partition. After an action is filed, the Court must determine whether the filing party has the right to partition. California Code of Civil Procedure Section 872.210. If the party has the right to partition, the Court will enter an Interlocutory Judgment ordering the partition of the property; determining the manner of partition (physical or by sale) – or delegating this duty to a Referee; and determining the interest of each party. California Code of Civil Procedure Section 872.210. One the partition is completed, whether physically or by sale, the Court enters a final judgment.
A Partition Referee’s duties may include any or all of the following:
- Valuing the property (this may include through hiring of a certified appraiser, utilizing the referee and/or real estate broker’s own analysis, evaluating comparable property sales, utilizing capitalization rates, aka cap rates)
- Facilitating agreements
- Seeking the highest value for the property owners
- Managing the property including:
- Collecting rents from tenants
- Handling service requests
- Overseeing property managers
- Maintaining and making repairs
- Issuing Notices to Enter, Notices to Repair, and Notices to Vacate
- Managing the sale process efficiently
- Distributing the proceeds to the owners
- Performing an accounting of the owners’ claims for debits and credits of money spent on purchasing, maintaining, and improving the property
- Improving the property to maximize the sale
- Hiring a real estate broker to sell the property or using the referee’s own broker license to do so.
After appointment by the Court, a Referee will file periodic reports with the Court. The timing and frequency of reports will vary depending on the type of property, circumstances of the case, and the particular Court’s requirements. A Partition Referee’s reports may include the following:
A description of the property divided, including features, square footage, zoning, any habitability issues
The owners’ interests in the property
Tenant information, including:
Rental amounts and other pertinent lease terms
Any obstructive behavior
Any issues presented by owners that affect sale of property at maximum value
Information on valuation of property
Any issues from Department of Building and Safety, Housing Department, and other governmental agencies
Recommendations as to opening and closing public and private ways, roads, streets, and easements
A description of the property sold to each purchaser
The name of the purchaser
The sale price
The terms and conditions of the sale
Any amounts payable to lienholders
Analysis of accounting of owners’ claims, including legal bases for determinations, and disbursement amounts
IS THERE A DIFFERENCE BETWEEN A REFEREE AND A RECEIVER?
Somewhat. Typically, a person appointed to take over a business is referred to as a Receiver. A Referee is typically appointed to primarily sell real property. However, part of a Referee’s assignment usually includes managing the property prior to selling it. This may include collecting rents, maintenance, making repairs and potentially improving the property to maximize the sale. Thus, a Referee is responsible for running the business of managing the property. A Referee is a form of Receiver, and they are not mutually exclusive terms.
AUTHORITY OF A PARTITION REFEREE
The Partition of Real Property Act (CCP §§ 874.311 – 874.321.5) applies to all property held by tenants in common unless (1) they have an agreement not to partition the property, or (2) they have a written agreement specifying another procedure for partition of the property.
CCP Section 874.313 states: “This chapter supplements the other provisions of this title.” In other words, the Partition of Real Property Act supplements all other provisions of the Partition Code (CCP §§ 872.210 Et Al.) that pre-existed passing of the Partition of Real Property Act.
The Partition Code provides for the following authority of a referee:
The referee shall divide or sell the property. CCP § 873.010
The referee may perform any acts necessary to exercise the authority in the Partition Code. CCP § 873.060
The referee may designate a portion of the property as a public or private way, road, or street; and may recommend the closure of any or all other roads on the property. CCP § 873.080.
Authorize or approve contracts for surveyors, engineers, appraisers, attorneys, real estate brokers, auctioneers, and others. In connection therewith, the referee has the authority to provide for the date of commencement of any lien provided by law or contract for such claims. CCP § 873.110.
The referee may employ attorneys with the approval of the court. CCP § 873.120. When Anand Law acts as referee, there is no need to hire other attorneys as Anand Law can handle everything in house.
The referee may employ a surveyor with approval of the court. CCP § 873.130.
The referee may employ an auctioneer. CCP § 873.140.
Although the referee is authorized to do all of the above, many of these items are unnecessary in the vast majority of partition cases. For example, in most cases involving residential property (single-family or multi-unit), surveyors, engineers, and auctioneers are not needed.
IS A REFEREE APPOINTED IN ALL PARTITION ACTIONS?
Yes, the CCP provides that a referee shall be appointed in all partition actions, both actions that commenced prior to the Partition of Real Property Act, and those that began after.
CCP § 873.010(a) states:
The court shall appoint a referee to divide or sell the property as ordered by the court.
See above Authority of a Partition Referee for more info.
TYPES OF PARTITION
Partition by Sale or Partition by Appraisal
Usually, the court will order a division by sale unless the parties agree to partition by appraisal or the court determines a division in kind (i.e. physical division) is possible. Once this is determined, the court appoints a partition referee to handle the actual partition of the property. The partition referee may be authorized to employ attorneys, surveyors, engineers, and others to carry out the division.
Partition by Valuation
If the parties agree, the property can be partitioned based on a valuation. There are a number of ways to do this, but generally an appraiser will be agreed upon, or the parties will submit names to the Referee and/or the Court, and one will be selected (of course, these parameters can vary based on the parties creativity and leverage); and after a final valuation is set based on the parameters agreed to, each party will be given a chance to buy the other out, and if neither does, the property will be sold and the proceeds divided based on ownership interests, other adjustments, and equity.
As part of the partition process, there will be an accounting of charges and credits to each co-owner’s share. Both plaintiff(s) and defendant(s) will want to seek reimbursement of money spent to maintain, improve or preserve property that benefits all co-owners. Credits can include expenditures in excess of the co-owner’s fractional share for necessary repairs, improvements that enhance the value of the property, taxes, payments of principal and interest on mortgages, and other liens, insurance for common benefit, and protection and preservation of title.
Partition of Heirs Property
The Uniform Partition of Heirs Property Act (UPHPA) modified the above statutory framework, effective January 1, 2022, creating a right for certain co-owners to force a buy-out based on an appraised value of the property. The UPHPA applies to “Heirs Property”—defined as property (i) owned at least 20% by relatives and (ii) where the interest of the party seeking to buy-out was acquired by a relative. California Code of Civil Procedure §874.311 Et Seq. (2021).
Under the UPHPA, when an action for partition is filed by a co-owner of inherited property, the other co-owners/heirs are provided with an opportunity to buy out the property at fair market value. The co-owner seeking to buy out the others’ shares must timely make an election with the court and timely deposit sufficient funds with the court.
The Partition of Real Property Act
In actions filed after January 1, 2023, the Partition of Real Property Act applies to all property held by tenants in common unless (1) they have an agreement not to partition the property, or (2) they have a written agreement specifying another procedure for partition of the property. Thus, unless an action was filed January 1, 2022 and December 31, 2022, or prior to that time period, the Partition of Real Property Act applies to all property held by tenants in common unless one of the above two exceptions applies, whether or not the property is “heirs” property. It does not, however, apply to property held by joint tenants.
The Partition of Real Property Act requires the Court to determine the “fair market value” of the property, subject to limited exception. After the fair market value is determined, the parties/cotenants that did not request a partition by sale are allowed to buy out the interests of those that did request a partition by sale. Subsequent to this buy-out process, if a party/ies duly completes the buy-out process, the Court will enter an order reapportioning the interests accordingly.
If no party elect to buy out the cotenants, the Court shall order Partition in Kind, unless Partition in Kind would result in great prejudice, in which case it shall order a Partition by Sale.
See more:
Partition Law Past and Present: The Partition of Real Property Act and its Predecessor The Uniform Partition of Heirs Property Act
Distribution of Proceeds from a Partition Sale: Expenses, Costs, Fees, Liens…and Adjustments Based on Equitable Considerations
Will My Attorney’s Fees Be Paid For By The Other Side In A Partition Case?
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ANAND LAW is composed of award-winning attorneys, business/financial strategists, and real estate brokers. We act as a court appointed Partition Referee throughout California, including in the cities and areas of Los Angeles, Pasadena, Arcadia, Burbank, La Canada Flintridge, Covina, West Covina, Downey, Santa Monica, Glendale, Eagle Rock, Hollywood, Atwater Village, Echo Park, Glassell Park, Loz Feliz, Silverlake, Highland Park, Boyle Heights, Hancock Park, Cheviot Hills, Koreatown, Miracle Mile, Mid City, Venice, Van Nuys, Encino, Studio City, Sherman Oaks, Panorama City, North Hills, West Hills, Thousand Oaks, Calabasas, Granada Hills, Long Beach, Glendora, Anaheim, Inglewood, Santa Ana, Beverly Hills, Pomona, Marina Del Rey, Playa Del Rey, Mar Vista, Culver City, Cheviot Hills, Holmby Hills, Westchester, El Segundo, Hermosa Beach, Redondo Beach, Manhattan Beach, Huntington Beach, Orange, Irvine, Costa Mesa, Newport Beach, Moorpark, Fresno, Stockton, San Francisco, Berkeley, and communities throughout Los Angeles, Orange, Santa Barbara, Riverside, San Bernardino, San Luis Obispo, San Diego, Ventura, San Francisco, Alameda, and Mendocino Counties.
The information on this site is provided for informational purposes only and does not constitute legal advice. The information contained is not intended to be a complete recitation of the law, and is provided only as general information in an area—it may not contain all nuances of the law, and is not guaranteed to be correct or complete. ANAND LAW PC (“ALPC”) expressly disclaims all liability in respect to actions taken or not taken based on the information contained in the FAQ.
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