Partition Sales

Heir property, no matter how many people share ownership of it, is always vulnerable to a partition sale. If there is an attempt to divide land among the owners (through a "partition in kind"), but a consensus cannot be reached or the land is not suitable for division, the family may be given a chance to purchase the land at its appraised value. Otherwise, the court will order a sale of the land.

Co-owners can also initiate a sale. If a co-owner decides to sell your family's land, he or she does not need your consent or the consent of the other heirs before seeking such a sale. One or several co-owners can sue you and other heirs, forcing a court-ordered sale of land (usually at a fraction of its true value) to the highest bidder. If a family member cannot be reached when a suit for partition is filed, the court will appoint a guardian ad litem to act in the interest of the missing relative.

Family members may be unable to out-bid developers or real estate speculators. Proceeds from the forced sale are distributed among the co-owners according to their fractional interests, but only after court fees (e.g. filing fees, commissioner fees, guardian ad litem fees), the costs of conducting the sale (e.g. surveying, postage, appraisal, title searches, classified ads, property maintenance and repairs, etc.), and attorney fees (usually 10 percent of the final sale price) are deducted. In some cases, developers may purchase a distant relative's share, then ask to have this share sold – forcing the whole tract of land to be sold.

Below is a basic example of a family tree and how proceeds from a partition sale of land worth $22,000 would be divided among six heirs.

Land worth: $22,000

Court fee: -$700
Expenses: -$1,100
Lawyer cut (10%): -$2,200

Total: $18,000

Smallest interest: 1/18=$1,000
Largest interest: 1/3=$6,000

Last Updated Jun. 22, 2011