When property co-owners reach an impasse about their shared real estate, a “partition action” often becomes their only path forward. If you’re wondering, “What is a partition sale in real estate?” Under Utah law, there are two distinct options: partition by sale and partition in kind.
The difference is significant: one path involves selling the property and splitting the proceeds, while the other involves physically dividing the property among co-owners. Understanding which option applies to your situation can save you time, money, and emotional stress.
Keane Law, PLLC, based in Northern Utah, has seen a significant uptick in partition cases. ‘When interest rates were low, and the housing market was red hot, people were eager to sell because they were assured a profit. The housing market is softer with higher interest rates. People don’t want to sell, so we see more partition actions,” says Walter Keane, an experienced real estate attorney in Utah.
Whether you’re grappling with inherited farmland that could be divided among siblings or you’re a joint owner of a single-family home that needs to be sold, you’ll need to know your legal options. Let’s examine how Utah courts approach each partition type and what factors influence their decisions.
Understanding Partition in Kind: Physical Division of Property
Partition action attorneys often recommend exploring physical division first, especially when dividing inherited property like large parcels of land. In Utah, courts prefer partition in kind whenever possible. This legal preference means that if your property can be physically divided without significantly reducing its value, the court will likely choose this option over forcing a sale.
You can think of partition in kind as drawing lines on a map. Each co-owner receives a portion of the property that reflects their ownership share. For example, if you and your sibling inherited a 10-acre parcel of land as equal owners, a partition in kind might result in each of you receiving 5 acres.
However, physical division isn’t always as straightforward as splitting acres. The court carefully considers several factors:
- Whether the division would significantly decrease the property’s value
- If each resulting portion would be usable and accessible
- Whether utilities and infrastructure can be reasonably divided
- The practical feasibility of physical division
- The economic impact on all parties involved
An example of a straightforward partition in kind would be a family-owned agricultural property that could be divided into separate parcels, each with road access and irrigation rights. The court would be more likely to order a partition in kind because each resulting parcel maintains its agricultural viability, and the overall property value isn’t diminished.
But what happens when you own a single-family home or a commercial building that can’t be physically divided? That’s where partition by sale becomes necessary.
Understanding Partition by Sale: When Physical Division Isn’t Possible
While Utah courts prefer physical division of property, many modern partition cases end in a forced sale. Two Utah cases we recently handled illustrate why and how courts handle these situations.
When co-owners can’t agree on property disposition, partition action lawyers can help guide them through how to force the sale of property through court action. In one case, a mother and son owned a single-family home in West Valley City as joint tenants. When the son sought to sell the property, his mother wouldn’t cooperate. The Utah court ordered a partition by sale because physically dividing a single-family home wasn’t practical. The court’s order included specific requirements:
- The property must be listed on the MLS.
- The home must be made available for photographs and inspections.
- Two open houses must be conducted within 30 days.
- A title company would handle the sale proceeds, paying off liens and distributing the remaining funds equally.
In another case, former romantic partners owned a home together in American Fork. When the relationship ended, and one partner moved out, they couldn’t agree on selling the property. Even with little equity in the home and necessary repairs, the court still ordered a partition by sale to resolve the deadlock.
These cases highlight important aspects of partition by sale in Utah:
- Courts can order uncooperative owners to vacate the property.
- The court may authorize one owner to handle the sale process.
- Title companies ensure fair distribution of proceeds.
- Mortgage liens and encumbrances are paid before distributing funds.
How Utah Courts Decide Between Sale and Division
The decision between selling or dividing property often comes at an emotionally charged time in people’s lives. Whether you’re dealing with the end of a relationship, family disagreements, or something else, experienced partition action attorneys can help you navigate the process.
Utah courts recognize the personal nature of these cases. They understand that a house isn’t just a piece of property. It’s often filled with memories and represents years of emotional and financial investment. However, they must balance these personal factors with practical realities when deciding between partition by sale or division in kind.
What’s particularly reassuring for property owners is that courts prioritize protecting everyone’s financial interests. They ensure mortgages and liens are correctly handled, proceeds are fairly distributed, and the sale process is managed professionally, typically through a title company that acts as a neutral third party.
Take the First Step Toward Resolution
It’s easy to feel stuck when you’re involved in a property dispute with family members, former partners, or co-owners. You might lose sleep over a shared inheritance, worry about your financial future, or be frustrated with an uncooperative co-owner who refuses to discuss selling. These situations rarely improve with time, and legal intervention often provides the structure and resolution needed to move forward.
Don’t let fear of conflict or uncertainty about the legal process keep you in a difficult situation. Contact Keane Law, PLLC, for guidance. With decades of experience handling partition cases in Utah, we can help you understand your options and create a path forward. The sooner you understand your rights, the sooner you can move toward resolution.