Partition Sale

What is the name of your state? CA


My siblings and I are 10% undivided minority owners of an unzoned property (50acres) in a metropolitan area in California. The majority owner (90%), a developer, is suing for a partition sale.

As a zoned piece of property, commercial/residential, our value increases dramatically and the majority owner is working to make this happen. Although we do not have the resources to assist this rezoning, we would like to hold on to our interest until that is complere. The developer has pressured us to accept an offer based on the value of the landed unzoned get rid us, however, this was basically less than our cost basis and unacceptable. Additionally, he offered up silent partnership, however considering our past dealings with this individual, we do not have confidence that it would pay off in the long run. One of the siblings is paranoid that we will get “screwed”

If possible, we’d like to hold on to our percentage until the property is zoned and then sell. The ideal situation would be an equitable partition without a sale and we’d end up owning 5 acres of zoned property a few years down the line. What are the chances of this happening?

In a partitioned sale, I’m sure we’d come out on the losing end. The property would be valued as unzoned, and I’m sure the majority owner would pick it up via a crony that would purchase the property at a fraction of what it is worth. How do we prevent a partition sale?

There are some unusual title dealings going on. Initially, the developer purchased 90% ownership and then offered us a small amount for the remaining 10%. When rejected, he stated that he would take it to a partition sale. Since that time, the developer’s title has transferred to a new individual, the lawyer for the developer is still the same, and it is the new individual that is suing a for a partition sale. I suspect that this new player has a backroom agreement with the developer to take this to a partition sale so that the developer can buy both him and us out a small premium. How is it possible for a new individual to sue us for a partition sale even if we’ve had no interaction with him?

This developer has significant resources and we do not. Up to this point we’ve only been able to be passive and take no action. Do we have any recourse against the developer. Or can we slow down the process. What will the courts think and how will they rule? You input is appreciated.

Sincerely,

Emma

First of all emma, there is no way you can stop this case since you, any of the other owners and/or the developer have the exact same rights to partition.

HOWEVER, based on the following, you do have other options:

If possible, we’d like to hold on to our percentage until the property is zoned and then sell. The ideal situation would be an equitable partition without a sale and we’d end up owning 5 acres of zoned property a few years down the line. What are the chances of this happening?

You and the other owners should be on the same page, in other words, hire an attorney for the group and answer the Partition with one of your own, in this case a Petition to Partition in Kind.

Regardless, get the group together and hire a RE attorney to represent you and the group.

Thanks for your response. I thought that would be the case, we would be unable to prevent a partition, regardless of "fairness" and your suggestion of a Partion in Kind seems like an appropriate way to go if we want to hang on to the property.

We do have legal representation, however, we do not have much in the way of guidance. The lawyer were working with understands the issues but provides options and possible outcomes, not hard advice. Which, may or may not be appropriate in this case because I understand that ultimate the decision in on the our shoulders. Additionally one of the siblings is a bit of a fighter, emotionally involved and it is difficult to build concensus.

Personally, I would have opted for the silent partnership and let them develop and worried about obtaining a profit later. However, the paranoia of my family cancelled this option and now we are caught in this partition battle. Ahhh...well you can't choose your family. I hate to see the potential profit slip away.

Again thanks for your response. If you are a lawyer and specialize in California real estate law, please post your url.

Emma

[HomeGuru]

[quote]Originally posted by Emma1133
[
We do have legal representation, however, we do not have much in the way of guidance. The lawyer were working with understands the issues but provides options and possible outcomes, not hard advice.

**A: then request that hard advice be provided by this attorney.

I am neither an attorney nor in California. However, I just completed a 464 acre Partition in Kind suit with my lady friend that was initiated by a partner as a Partition for Sale.

and I agree with HG

[HomeGuru]

That's a kind response.