Sausalito Partition Referee

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.

WHAT DOES A PARTITION REFEREE DO?

A partition referee is a neutral third party appointed by a court to oversee the partition or division of real or personal property. Partition referees are appointed in partition actions where co-owners are segregating and terminating their common property interests.  In California, joint owners of real property may file a lawsuit seeking to have their joint interest in the property partitioned.

One co-owner of the property in dispute will file a complaint with the court, which begins an action of partition. After an action is filed, the Court must determine whether the filing party has the right to partition. California Code of Civil Procedure Section 872.210. If the party has the right to partition, the Court will enter an Interlocutory Judgment ordering the partition of the property; determining the manner of partition (physical or by sale) – or delegating this duty to a Referee; and determining the interest of each party. California Code of Civil Procedure Section 872.210. One the partition is completed, whether physically or by sale, the Court enters a final judgment.

A Partition Referee’s duties may include any or all of the following:

After appointment by the Court, a Referee will file periodic reports with the Court.  The timing and frequency of reports will vary depending on the type of property, circumstances  of the case, and the particular Court’s requirements.  A Partition Referee’s reports may include the following:

• A description of the property divided, including features, square footage, zoning, any habitability issues
• The owners’ interests in the property
• Tenant information, including:
  • Rental amounts and other pertinent lease terms
  • Any obstructive behavior
• Any issues presented by owners that affect sale of property at maximum value
• Information on valuation of property
• Any issues from Department of Building and Safety, Housing Department, and other governmental agencies
• Recommendations as to opening and closing public and private ways, roads, streets, and easements
• A description of the property sold to each purchaser
• The name of the purchaser
• The sale price
• The terms and conditions of the sale
• Any amounts payable to lienholders
• Analysis of accounting of owners’ claims, including legal bases for determinations, and disbursement amounts

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.

AUTHORITY OF A PARTITION REFEREE

The Partition of Real Property Act (CCP §§ 874.311 – 874.321.5) applies to all property held by tenants in common unless (1) they have an agreement not to partition the property, or (2) they have a written agreement specifying another procedure for partition of the property.

CCP Section 874.313 states: “This chapter supplements the other provisions of this title.” In other words, the Partition of Real Property Act supplements all other provisions of the Partition Code (CCP §§ 872.210 Et Al.) that pre-existed passing of the Partition of Real Property Act.

The Partition Code provides for the following authority of a referee:

• The referee shall divide or sell the property. CCP § 873.010
• The referee may perform any acts necessary to exercise the authority in the Partition Code. CCP § 873.060
• The referee may designate a portion of the property as a public or private way, road, or street; and may recommend the closure of any or all other roads on the property. CCP § 873.080.
• Authorize or approve contracts for surveyors, engineers, appraisers, attorneys, real estate brokers, auctioneers, and others. In connection therewith, the referee has the authority to provide for the date of commencement of any lien provided by law or contract for such claims. CCP § 873.110.
• The referee may employ attorneys with the approval of the court. CCP § 873.120. When Anand Law acts as referee, there is no need to hire other attorneys as Anand Law can handle everything in house.
• The referee may employ a surveyor with approval of the court. CCP § 873.130.
• The referee may employ an auctioneer. CCP § 873.140.

Although the referee is authorized to do all of the above, many of these items are unnecessary in the vast majority of partition cases. For example, in most cases involving residential property (single-family or multi-unit), surveyors, engineers, and auctioneers are not needed.

IS A REFEREE APPOINTED IN ALL PARTITION ACTIONS?

Yes, the CCP provides that a referee shall be appointed in all partition actions, both actions that commenced prior to the Partition of Real Property Act, and those that began after.

CCP § 873.010(a) states:

The court shall appoint a referee to divide or sell the property as ordered by the court.

See above Authority of a Partition Referee for more info.

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.