Having legal difficulties over the ownership or responsibility of a property can be difficult and stressful. Owning a property with others can bring unique challenges and legal proceedings.
Property disputes can be stressful, especially if there’s a mortgage on the property. In some cases, a property partition lawsuit may be your best option to avoid foreclosure.
Legal options are available for co-owners of a property who want to change the terms of ownership. A co-owner can file a property partition lawsuit to divide the property.
No matter what the situation with the ownership of your property, it’s important that you avoid foreclosure. If you’re facing legal issues, it’s recommended that you consult an attorney.
Joshua Denbeaux is a New Jersey attorney dedicated to protecting homeowner rights. Contact Denbeaux Law to learn more about how we may be able to help you.
What Is a Property Partition Lawsuit?
A property partition lawsuit is a legal option available to co-owners of a property when they can’t agree on the sale, use, or development of a property. Partition lawsuits can also involve disputes about the management of a property, such as how it’s used or maintained.
One party who owns the property will file a property partition lawsuit. Filing a property partition lawsuit asks the court to intervene to physically divide the property if possible or order the property to be sold with the proceeds divided among the owners.
Types of Partition
There are different types of property partitions. Depending on the type of property and the ownership situation, the court may order different types of property partitions.
Partition by Division
Partition by division, also known as partition in kind, divides a property into distinct portions that each owner individually controls. This type of partition is usually only applicable to large pieces of land without buildings or structures.
Partition by Sale
When a property is divided into a partition by sale, the court orders the property to be sold. A property sold this way will divide proceeds between owners.
Partition by Appraisal
Partition by appraisal allows one co-owner to buy out the other owners based on an appraised value. This type of partition is less common. The property has to be appraised for a fair market value in order for the owners to be bought out.
Partition Process
Property partition lawsuits have a particular legal process. One owner must file a complaint with the courts to start the process.
After the complaint has been filed, the defendants or other parties involved must respond. If they do not, a default judgment could be entered. A co-owner can respond to a complaint to dispute a partition action.
As part of the partition process, the court will appoint a third party to carry out the partition action according to the court order. The third party may appraise the property, negotiate with creditors, sell the property, or physically divide the property.
It’s important to consider that partition actions can be expensive. Working out a solution with the property’s co-owners can make it much easier to avoid legal proceedings.
When Is a Partition Lawsuit Used?
A partition lawsuit is used when co-owners can’t decide what to do with a property. Property division can be decided voluntarily by owners outside of court or through a property partition lawsuit.
If the property division is a part of a family relationship, like a divorce or termination of a domestic partnership, the division of property will be handled in family court. In these types of lawsuits, property division can be a factor in the entire legal proceeding.
Things to Consider During Partition Lawsuits
While a property partition lawsuit is taking place, there are some important factors that you should keep in mind. One important thing to keep in mind is that during the proceedings, you are still an owner, and you are responsible for maintaining the property.
If you have a mortgage on the property, make sure that you keep up with your mortgage payments and that the mortgage is being paid in full to avoid foreclosure. Even if your property is undergoing a partition lawsuit, it could still be foreclosed.
Partition lawsuits can complicated. Even if the property partition lawsuit determines that your co-owner is the sole owner and responsible for the property and mortgage, a foreclosure while your name is still on the mortgage will hurt your credit score.
If you give up the property after a partition lawsuit, make sure that your name is removed from the mortgage. Keeping your name on the mortgage means that you’re still vulnerable to being hurt by foreclosure, even if you are no longer responsible for or benefit from the property.
As you go through a property partition lawsuit, it’s important to continue to maintain your property. One of the options in property partition is that you could be bought out based on the appraised value of the property. A run-down property has less value, so neglecting your property could hurt you in the long run.
Property Partition Lawsuits and Foreclosure
If your property is facing foreclosure, a partition sale may be an option to help you avoid foreclosure. Selling a property can help you avoid foreclosure by using proceeds to pay off your mortgage.
You can force the sale of a property by filing for a property partition. When a partition by sale is granted, the property will be sold, and you can use the proceeds to pay off your mortgage, ending any foreclosure actions.
Keep in mind that your mortgage company can still be foreclosed during a partition action. It’s not common for a mortgage company to pursue foreclosure during a partition lawsuit, but they can. Selling a foreclosed property is frequently a sale for a loss, whereas a homeowner may be able to sell a property for more, which could mean that the mortgage company gets their money back.
Contact an Attorney Today
Property partition lawsuits can be emotional and stressful. Having to fight against your property being divided or sold can be difficult to manage, especially when you consider having to continue to maintain your property through the partition lawsuit.
If you’re having issues with a co-owner of your property, you should contact an attorney. Ownership disputes could quickly turn into a legal issue. Consulting an attorney can help you understand the partition process and your legal options.
Joshua Denbeaux is an experienced New Jersey attorney. Joshua can help you understand the process of a property partition lawsuit and how to avoid foreclosure during a lawsuit.
Contact Denbeaux Law today to learn more about the legal process and how we may be able to help you.
