Partition Actions in Real Estate: When Co-Owners Disagree

Joint ownership of real estate, whether between family members, business partners, or investors, can offer practical advantages. Shared responsibility, pooled capital, and strategic collaboration often drive these arrangements. But when disputes arise over the use, management, or future of the property, co-ownership can become a serious liability. In these cases, partition actions serve as a critical legal mechanism for resolving deadlock and protecting ownership rights.

Nativ Winiarsky explores the key elements of partition actions and examines recent case law to illustrate how courts handle such conflicts.

What Is a Partition Action?

A partition action is a legal remedy that allows a co-owner of real property to force a division or sale of the property when voluntary agreement is no longer possible. Any co-owner with legal title may file, regardless of whether the other parties consent. These actions are typically filed in state supreme court and are particularly relevant in situations involving inherited property, failed real estate partnerships, or contentious co-ownership of multifamily buildings.

There are two types of partition relief the court may grant:

  1. Partition in kind, which involves physically dividing the property
  2. Partition by sale, which results in the property being sold and the proceeds distributed

Courts will generally consider partition in kind first, but in New York City and other urban settings, physical division is often impractical or legally impermissible. As a result, partition by sale is far more common in contested real estate matters.

Partition in Kind: Physical Division of the Property

Partition in kind refers to the actual division of the property into separate parcels, with each co-owner receiving a portion that reflects their ownership interest. This method is more common with agricultural or undeveloped land, where boundaries can be drawn without disrupting the property’s value or use.

However, this approach is rarely viable in urban environments. Subdividing a residential or commercial building is often impossible due to zoning laws, the physical structure of the property, or shared amenities. In these cases, the court will usually move to a sale.

Partition by Sale: Liquidation and Distribution

Partition by sale involves the court-ordered sale of the entire property, followed by the distribution of net proceeds to the owners according to their legal shares. This can be executed through a public auction or a private sale, depending on what the court deems most equitable.

Courts are more likely to order a sale when:

  • The property cannot be reasonably divided
  • The co-owners are in a hostile or uncooperative relationship
  • One or more parties refuse to contribute to maintenance, taxes, or mortgage obligations
  • The property would lose significant value if split

Although a forced sale may feel unjust to parties with sentimental or generational ties to the property, the court’s priority is an efficient and equitable resolution.

Who Can Bring a Partition Action?

Any individual or entity with a legal ownership interest may bring a partition action. This includes:

  • Tenants in common
  • Joint tenants
  • Heirs with fractional interests in inherited property

Spouses who own property as tenants by the entirety generally cannot file for partition unless they are legally separated or divorced. Importantly, a co-owner does not need consent from the others to initiate a case. The right to sever one’s interest in jointly held property is absolute, subject to judicial review.

What Happens in Court?

Once a partition action is filed, the court will:

  1. Confirm the ownership interests of each party
  2. Evaluate whether a partition in kind is feasible
  3. Appoint a referee or commissioner to assess the property and issue recommendations
  4. Decide whether the property should be divided or sold
  5. Oversee the distribution of proceeds

The court may also adjust the final allocation of proceeds to reflect disproportionate contributions. For example, if one party has paid the majority of property taxes, maintenance expenses, or mortgage payments, that party may receive a greater share of the proceeds.

Heirs Property and Reform: The Uniform Partition of Heirs Property Act

Partition actions have been the subject of national reform efforts, particularly in cases involving heirs who have inherited property without a will. In these situations, multiple family members may end up with fractional interests, making the property vulnerable to forced sales by third parties or majority owners.

To address this, the Uniform Law Commission developed the Uniform Partition of

Heirs Property Act (UPHPA). This law provides additional protections, including requirements for:

  • Fair market appraisals
  • Buyout options for minority owners
  • A preference for partition in kind where possible

More than 20 states have adopted the UPHPA as of 2025. While New York has not yet enacted it, the act is part of a growing national trend to prevent unjust loss of family-owned property due to procedural loopholes.

Key Takeaways

Partition actions can be highly effective for resolving co-ownership disputes, but they also carry significant financial and emotional stakes. For landlords and property owners, understanding the legal framework surrounding partition is critical—especially when dealing with inherited interests, deteriorating partnerships, or non-cooperative co-owners.

These cases are often complex, involving title issues, contribution disputes, and regulatory overlays like rent stabilization or zoning restrictions. Early legal intervention is key. By asserting your rights proactively and documenting all ownership contributions, you can safeguard your interest and avoid losing control of valuable real estate assets.

Whether you are an owner of a multifamily property, a partner in a commercial venture, or an heir to a real estate legacy, navigating partition disputes requires careful strategy and experienced legal guidance.

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