Forced Sales to Cash Out
Are you frustrated with a piece of property that you own with someone else? Do you need to cash out of your portion of the property so that he/she can take over full ownership? If you are a joint property owner in the state of Maryland, you have the right to force the sale of your property through legal means. The most popular method of forcing the sale is with a sale in lieu of partition action or with partition action, whether voluntary or judicial.
What is a Partition?
A partition divides the property so that both parties can cash out or so that one person can cash out and the other can become the sole property owner. Partition actions can be voluntary if both parties accept the property division and, through legal representation, negotiate a contract to split up the property or sale profits. If you can’t reach an agreement or if your relationship is less-than-positive, you can file a partition lawsuit and let the court decide the property division.
What Happens During a Judicial Partition?
The court will do one of two things: divide up the land if possible or order a sale of the property to split the proceeds. If the property you own is divisible into two lots (there is no home standing there), the court will split it in half and make it two separate properties. You would then be free to sell your half.
In most cases, the property in question is a home, so it cannot be split without loss to the property owners. The court will order a sale, called a sale in lieu of partition, and then order the proceeds divided. The typical sale procedure involves three property commissioners to assign value to your property and oversee the sale. These commissioners and their associated fees and costs can be bundled in with the sale proceeds. For this reason, it’s always better to negotiate a voluntary partition if possible to get the most cash out of your property.
What About a Property I Inherited?
If you inherited a property with a family member and want to cash out or avoid the responsibility of upkeep and costly property taxes, you can file for a sale in lieu or partition or partition. During a sale in lieu of partition, the court will determine that your property (typically a home) cannot be divided without losing value. Once the sale is completed, you will receive your portion of the sale after the payment of compensation, fees, and costs of the commissioners is removed.
How Can I Start the Partition or Sale in Lieu of Partition Process?
To ensure the process goes smoothly, give us a call at Lebovitz Law. We have years of experience negotiating the best deals for our clients, whether it’s family law or property law. Contact us today.