Pasadena Partition Referee / Receiver

EXTENSIVE EXPERIENCE & NETWORK

We have counseled and represented parties in connection with real property ranging in value from $300,000 to $25,000,000, including residential properties, multi-units, and apartments.  We have successfully resolved actions related to analysis of title history/recorded documents, complex title issues (e.g. lien priority disputes, reattachment of junior liens wiped off by foreclosure of senior lienholder, leasehold vs. mortgage priority), partition, Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), construction, and broker duties.

We have a network of agents throughout California which allows us to provide hyper-localized expertise of the markets, and maximize value for you and your clients. We also routinely work with a variety of developers, contractors, brokers, agents, investors, family offices, experts (including construction, geology, and handwriting), appraisers, and notaries.

APPOINTING THE RIGHT PARTITION REFEREE IN CALIFORNIA

When seeking the appointment of a partition referee, it is important to find a firm that has knowledge of property law, litigation, and real estate markets. ANAND LAW has in-depth knowledge of all three, which allows us to resolve partition disputes quickly and fairly for all parties involved.

We have experience to deal with any issue that may arise in a partition action, including: corporate ownership, sale of attendant business, unlawful detainer (evictions), quiet title, boundary disputes, TIC properties, tenant properties, unexpired  leases, hazardous materials, code violations, mechanics liens, unrecorded easements, and HOA regulations.  We ensure that all potential pitfalls are accounted for in order to resolve your situation with finality.

IS THERE A DIFFERENCE BETWEEN A REFEREE AND A RECEIVER?

Somewhat.  Typically, a person appointed to take over a business is referred to as a Receiver.   A Referee is typically appointed to primarily sell real property.  However, part of a Referee’s assignment usually includes managing the property prior to selling it.  This may include collecting rents, maintenance, making repairs and potentially improving the property to maximize the sale.  Thus, a Referee is responsible for running the business of managing the property.  A Referee is a form of Receiver, and they are not mutually exclusive terms.

TYPES OF PARTITION

Partition by Sale or Partition by Appraisal

Usually, the court will order a division by sale unless the parties agree to partition by appraisal or the court determines a division in kind (i.e. physical division) is possible. Once this is determined, the court appoints a partition referee to handle the actual partition of the property. The partition referee may be authorized to employ attorneys, surveyors, engineers, and others to carry out the division.

Partition by Valuation

If the parties agree, the property can be partitioned based on a valuation.  There are a number of ways to do this, but generally an appraiser will be agreed upon, or the parties will submit names to the Referee and/or the Court, and one will be selected (of course, these parameters can vary based on the parties creativity and leverage); and after a final valuation is set based on the parameters agreed to, each party will be given a chance to buy the other out, and if neither does, the property will be sold and the proceeds divided based on ownership interests, other adjustments, and equity.

As part of the partition process, there will be an accounting of charges and credits to each co-owner’s share. Both plaintiff(s) and defendant(s) will want to seek reimbursement of money spent to maintain, improve or preserve property that benefits all co-owners. Credits can include expenditures in excess of the co-owner’s fractional share for necessary repairs, improvements that enhance the value of the property, taxes, payments of principal and interest on mortgages, and other liens, insurance for common benefit, and protection and preservation of title.

Partition of Heirs Property

The Uniform Partition of Heirs Property Act (UPHPA) modified the above statutory framework, effective January 1, 2022, creating a right for certain co-owners to force a buy-out based on an appraised value of the property. The UPHPA applies to “Heirs Property”—defined as property (i) owned at least 20% by relatives and (ii) where the interest of the party seeking to buy-out was acquired by a relative.  California Code of Civil Procedure §874.311 Et Seq. (2021).

Under the UPHPA, when an action for partition is filed by a co-owner of inherited property, the other co-owners/heirs are provided with an opportunity to buy out the property at fair market value.   The co-owner seeking to buy out the others’ shares must timely make an election with the court and timely deposit sufficient funds with the court.