Partition (law)

A partition is a term used in the law of real property to describe an act, by a court order or otherwise, to divide up a concurrent estate into separate portions representing the proportionate interests of the owners of property. It is sometimes described as a forced sale. Under the common law, any owner of property who owns an undivided concurrent interest in land can seek such a division. In some cases, the parties agree to a specific division of the land; if they are unable to do so, the court will determine an appropriate division. A sole owner, or several owners, of a piece of land may partition their land by entering a deed poll (sometimes referred to as "carving out").
Why forced sales occur.
Forced sales generally occur because owners of property are unable to agree upon certain aspects of the ownership. The owners may disagree on how to use the property, the amount of money to invest into the property, on their right to occupy and use the whole of the property. If the parties cannot come to an agreement, the case moves to court through a petition to partition action. As the number of cohabitants increases in the United States, the petition to partition action has become more common as a remedy to divide real and personal property.
Property may be owned by more than one person either as joint tenants, tenants in common, and in some states tenants by the entirety. The choice of which tenancy to enter into is made by the parties at the time of purchase. With each type of tenancy, each owner has the right to occupy the whole. That means that owners are not allowed to designate certain rooms as their own, but each element of the property is enjoyed fully by all parties.
Types of partition.
There are three kinds of partition which can be awarded by court: "partition in kind", "partition by allotment", and "partition by sale".
A provision in a deed completely prohibiting partition will not be given effect, but courts will enforce a provision that temporarily restricts partition, as long as the restriction is reasonable.
Statutory variations.
Ontario Code.
The Ontario Partition Act, R.S.O. 1990, c. P.4, states:
Florida statutes.
Florida provides for partition actions by statute, Chapter 64, which basically provides that any co-owner of real estate may seek partition. In Florida, there are basically no defenses to a partition action, other than if the parties have agreed not to partition the real estate.
Pennsylvania code.
In D’Arcy v. Buckley, 71 Bucks Co. L. Rep. 167 (1997), two people purchased property as joint tenants with right of survivorship. The plaintiff contributed five times more than the defendant toward the purchase price. In a partition action, the plaintiff sought credit for the full amount of his superior contributions. The Court held that, in the absence of fraud, the working of the deed operated to convey a one-half interest to each of the two joint tenants. The decision relies the authorities of Masgai v. Masgai, 460 Pa. 453, 333 A.2d 861 (1975), and DeLoatch v. Murphy, 369 Pa. Super. 255, 535 A.2d 146 (1987). The plaintiff argued, to no avail, that he did not intend to make a lifetime gift to defendant.
California Code.
Partition in kind is favored, Cal. Civ. Proc. Code § 872.810, but partition by sale is allowed if a partition by sale maximizes the market value of the subject property(s).
In many cases, a two-step process may be required: (1) a trial, during which oral and documentary evidence is heard, and either affirms or denies the right of the moving party to effect a partition of the subject property(s), and, if affirmed, results in an interlocutory judgment (sometimes called a "first interlocutory judgment"), and (2) particularly in a contested partition, an evidentiary hearing (also a trial), usually after the property(s) have been appraised by experts, and during which trial additional oral and documentary evidence is heard, the property(s) are ordered divided and awarded proportionally where possible, including cash compensation where proportional division is impractical or impossible (sometimes called a "second interlocutory judgment"). The division usually requires the employment of experts such as engineers and surveyors, and the preparation of special reports (which include conveyance deeds and easement deeds). As a final act, the court, in a hearing (not a trial), will accept the special reports and order that these be executed by a title company, which will also effectuate "recordation" of the conveyance and easement deeds (any cash compensation due any of the parties will also be effectuated within the escrow).
Once the court has determined that real property is to be partitioned, the court is authorized to appoint a Partition Referee for the purpose of handling the actual partition of the property. 
The Court’s interlocutory judgment may order either division of the property or sale of the property (with later division of the sale proceeds). In either case, a Partition Referee is appointed to carry the interlocutory judgment into effect. The Partition Referee may be authorized to employ attorneys, surveyors, real estate broker, engineers, and the like. 
The sale by the Partition Referee can be made by either public auction or private sale, whichever is more beneficial to the parties. The most common method of sale of real property is by private sale with the assistance of a real estate broker for advertising the property. 
Sales by Partition Referees must be confirmed by the court before becoming final. At the confirmation hearing, the court may confirm the proposed sale, reject the proposed sale, or allow higher bids for the property through an over-bidding process.
The Partition Referee is given authority to execute documents as required to conclude a sale that is confirmed by the Court.
Partition procedure.
A party seeking a partition must file a partition lawsuit. State codes generally favor physical division (partition in-kind) of the affected property(s) over sale (partition by sale as a unit), particularly if a tenant would be displaced from his or her primary residence by a sale. If in-kind partition is feasible, the property(s) will be divided proportionally. Where small differences in such division are unavoidable, cash compensation for the difference(s) will be awarded to maintain proportionality. If the property(s) cannot be divided and allocated to give each tenant a portion without spoiling the whole, the court will order a sale. A special master (referee) is commonly appointed by the court to execute the partition process. The referee is responsible only to the court, and the referee is limited only by the court's instructions, and applicable state codes. For an in-kind partition, the referee will cause deeds to the adjusted property(s) to be prepared. Where easements are required for access, the referee will employ professionals (engineers, surveyors and other experts) as required to describe the easement(s). The conveyance deeds for the adjusted property(s) and the easement deed(s) will be recorded simultaneously. Often, "referee's deeds" (deeds signed by the referee, in the owner's stead) may be employed.
Tenants in common partitions vs. tenants with rights of survivorship partitions.
Tenants in common (TIC) deeds may or may not be taken in equal shares, but a joint tenants with rights of survivorship (JTWROS) deed must always be taken in equal shares unless specifically and clearly indicated otherwise in the deed language. Therefore, a partition action for those two types of deeds will vary.
When a JTWROS property is partitioned, the proceeds must be divided equally among tenants without regard to contribution to purchase price since a JTWROS deed is always taken in equal shares. So with a JTWROS, contributions to purchase price is not an issue during partition. Otherwise, the premise of a JTWROS deed would be invalid and its purpose would be defeated. On the other hand, when a TIC property is partitioned, courts may be at liberty to consider unequal contributions to purchase price and adjust the tenants' distributions accordingly.
In either partition situation, tenants may request credits for unequal contributions to expenses incurred "after" taking deed to the property. Such credits may cover utility and maintenance expenses, and are allocated according to shares. Credits for improvements to the property may be granted if the improvements actually increased the value of the property.