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Partition in kind a sale

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flicker101

Junior Member
What is the name of your state? Placer Co. CA. I inherited three properties that I own as tenants in common with my two brothers. If we do a partition in kind (each taking one) is that a sale subject to property tax reevalution?

also, can any one of us apply for a partition and can it be fought if I want out and want the cash?

Thanks!
 


shortbus

Member
I don't know about the tax assessment issue. It seems like it would NOT be subject to re-evaluation, but I may be wrong.

Any co-tenant can file an action for partition. Courts will generally prefer to order a partition in kind where possible so whoever wants to liquidate can do so without affecting the other shares. If the property is such that this isn't feasible, the court will order a partition by sale.
 

divgradcurl

Senior Member
What is the name of your state? Placer Co. CA. I inherited three properties that I own as tenants in common with my two brothers. If we do a partition in kind (each taking one) is that a sale subject to property tax reevalution?
This varies slightly from county to county, but in general, if you add or remove names from a title, that is considered a "change in ownership" that triggers reevaluation. You can add or remove names without reevaluation if the names are of those who do not have a present interest in the property -- like mortgage holders -- but what you are doing is actually changing the present ownership interests in the property, and that will trigger a tax reevaluation.

You should talk with a local attorney who can review all of the facts of your situation, and may be able to come up with a strategy that both minimizes taxes and allows you to do what you want to do.
 

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