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Partition By Appraisal

What is aPartition By Appraisal?

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A partition by appraisal is a relatively rare form of partition method used in California. But now with the 2023 Partition of Real Property Act coming into effect, a partition by appraisal is likely to be a part of nearly every partition action in the state. This partition action occurs when the co-owners of the property in question agree to have it partitioned by appraisal.

An independent appraiser will accomplish the appraisal process, and the value of the property will be determined based on the appraiser’s neutral evaluation. The appraiser’s report will indicate the value that must be paid to buy-out the selling co-owner’s interest in the property.

A Written Agreement between the Parties is Required

All co-owners with an interest or share in the property should be in agreement to have a partition by appraisal. This method cannot be enforced by the courts. It can take place only when there is no dispute on the interests of each party involved, if any such dispute has already been adjudicated. 

For the partition by appraisal agreement between the parties to be considered valid, some additional requirements must be fulfilled under the Code of Civil Procedure. The agreement must be made in writing and should be filed with the court, including the following details: 

  • Property description
  • Names and individual interests of the parties involved 
  • Names of the parties willing to buy-out the selling parties’ interests 
  • Names of the referees appointed by the consent of all parties 
  • The date by which the appraisal must be completed 
  • Any other mutually agreed upon terms 

Following the written draft of the agreement, the court’s approval must be obtained for the agreement to be legally enforced. The court will determine that the agreement is in compliance with the law and the terms are equitable before it gives its approval.

The Appraisal Process

After the court has approved the agreement between the parties for partition by appraisal, a partition referee will be appointed. If this provision is included in the agreement, three referees will make an appraisal of the property. Alternatively, the court will appoint a partition referee. It is the referee’s sole responsibility to prepare a report of the valuation of the individual interests of each party as well as any other findings. The referee will file the written report with the court.

Following the filing of the referee’s report, the court will set a date of hearing to finalize the partition by appraisal. The referee’s report will be confirmed by the court and acted upon once the court determines that:

  • Proceedings for the partition by appraisal were conducted according to the rules 
  • Title transfers in favor of the acquiring parties were regularly made 
  • No such facts have emerged that would render the transfer inequitable

Once the court is satisfied that all requirements have been met, it will confirm the title transfers based on the following conditions:

  • Buy-out amount and any other amounts related to the agreement of partition by appraisal have been paid. 
  • Any security required as per the terms and conditions has been given.
  • The general expenses of the partition action as well as costs associated with the partition by appraisal procedure have been paid by the parties. 
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Choose the Trusted Partition Action Lawyers in California

Each case of partition by appraisal is unique and involves an intricate legal process to be completed before it gets the court’s approval. To ensure fair and successful completion of your partition by appraisal, you should have our knowledgeable and dedicated partition attorneys by your side. To request your free consultation, please contact us today.

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