On January 1, 2023, California’s partition law changed in a fundamental way. The Partition of Real Property Act took effect, and it rewrote the rules for almost every co-ownership dispute in the state. As a result, the strategy that worked under the old statute often fails under the new one.

This guide explains the California Partition of Real Property Act in detail. So you will learn what the law does, when it applies, how the new procedures work, and what every co-owner needs to know before filing or defending against a partition action.

What Is the Partition of Real Property Act?

The Partition of Real Property Act is a California law codified at Code of Civil Procedure sections 874.311 through 874.323. The Legislature enacted it through AB 2245 in July 2022. The Act took effect on January 1, 2023.

In short, the Partition of Real Property Act applies to any real property held in tenancy in common where the co-owners have not signed a written agreement that governs partition. As a result, it covers the vast majority of California co-ownership situations today.

Importantly, the Partition of Real Property Act did not eliminate the old partition statute. Instead, it added a new procedural overlay. So if your case qualifies under the Act, you get the new procedures. If it does not, you get the older rules.

The practical effect is significant. For high-value California real estate, the new procedures often produce dramatically different outcomes. In fact, they can change everything from the final sale price to who ends up owning the property.

Why California Enacted the Partition of Real Property Act

To understand the Partition of Real Property Act, it helps to know why the Legislature passed it.

For decades, California’s partition statute had a serious problem. Specifically, when one co-owner filed for partition, the property usually sold at auction or through a sealed-bid process. As a result, the sale price often fell well below market value. In effect, the old system allowed sophisticated investors to scoop up valuable property for pennies on the dollar.

This problem hit communities of color especially hard. For example, families who inherited property over generations sometimes lost it entirely when one heir filed a partition action. Then the property sold at auction for a fraction of its market value, and the family was left with little to show for decades of ownership.

In response, the Uniform Law Commission drafted the Uniform Partition of Heirs Property Act. So California adopted that version in 2021 through AB 633. However, the original law only applied to “heirs property,” which meant inherited property held by family members.

Then in 2022, the Legislature went further. Through AB 2245, it replaced the heirs-only statute with the much broader Partition of Real Property Act. So now the new procedures apply to all co-owned property held in tenancy in common, not just inherited property.

The result is a partition system that better protects market value for every California co-owner.

Which Properties Fall Under the Partition of Real Property Act?

Under CCP section 874.311(b), the Partition of Real Property Act applies to real property held in tenancy in common where no written agreement governs partition.

In plain terms, three conditions must be true.

First, the property must be co-owned as tenants in common. Most California co-ownership falls into this category by default. However, joint tenancy and tenancy by the entirety follow different rules.

Second, the property must be real estate. The Partition of Real Property Act does not apply to personal property, business interests, or other non-real-estate assets.

Third, there must be no written partition agreement. This is the critical carve-out. If the co-owners signed a written agreement that addresses partition, then the Act does not apply, and the older statute controls.

In practice, almost every California co-ownership situation lacks a written partition agreement. So the Partition of Real Property Act covers the overwhelming majority of California partition actions filed today.

The Three Major Changes the Partition of Real Property Act Introduced

The Partition of Real Property Act introduced three provisions that fundamentally changed California co-ownership disputes. Each one matters strategically.

The Cotenant Buyout Right

The most significant change is the cotenant buyout right under CCP section 874.317.

Under the old statute, a co-owner who wanted to keep the property had limited options. Either they negotiated a buyout privately, or they bid against everyone else at the partition sale. Often, they lost the property to an outside investor.

The Partition of Real Property Act changed this. Now, when one co-owner files for partition by sale, the other co-owners get a formal opportunity to buy the petitioning party’s share. Specifically, the court determines the fair market value of the property through an independent appraisal. Then the non-petitioning co-owners can purchase the petitioning party’s interest at that price.

The buyout right works on a strict timeline. After the court determines value, non-petitioning co-owners typically have 45 days to elect the buyout. If they elect, they receive additional time to close. If they do not elect, or if they fail to close, the case proceeds to sale.

Importantly, the buyout right shifts negotiating leverage substantially. For example, a co-owner who wants to keep a Newport Beach beachfront home can often achieve that result through the buyout mechanism, even if the other co-owner wants the property sold.

The Open-Market Sale Requirement

The second major change is the open-market sale requirement under CCP section 874.320.

Under the old statute, partition sales typically happened through sealed bids or public auctions. As a result, sale prices often fell well below market value.

The Partition of Real Property Act now requires that any partition sale proceed as an open-market sale through a licensed real estate broker. So the property goes on the market like any normal listing. Furthermore, the sale price cannot fall below the fair market value determined by the court’s appraisal.

Sealed-bid sales and auctions are still possible. However, the court must specifically find that they would be more economically advantageous than an open-market sale. In practice, this finding is rare.

For high-value California real estate, this change matters enormously. After all, the difference between an auction price and an open-market price on a $3 million property routinely runs into the hundreds of thousands of dollars.

Court-Supervised Independent Appraisal

The third major change is the independent appraisal requirement under CCP section 874.316.

Under the old statute, valuation was often contested through dueling expert witnesses. So co-owners frequently litigated over property value for months, with each side hiring its own appraiser.

The Partition of Real Property Act streamlined this process. Now, the court orders an independent appraisal by a disinterested appraiser. Then the appraised value becomes the basis for the cotenant buyout, the minimum sale price, and other procedural milestones.

A party who disagrees with the appraisal can still object. However, the court must specifically resolve the objection, often through a hearing. So the process is faster and more predictable than the old dueling-expert approach.

Step by Step: How the Partition of Real Property Act Procedure Works

Here is how a partition action under the Partition of Real Property Act actually unfolds.

Filing and Initial Determinations

First, a co-owner files a verified partition complaint in Superior Court. Then the court determines whether the property qualifies under the Partition of Real Property Act. Specifically, the court asks whether the property is real estate held in tenancy in common with no written partition agreement.

Notice and Service

Next, the petitioning party serves notice on all other co-owners. CCP section 874.313 requires specific notice of the rights available under the Act, including the buyout right.

Determination of Value

Then the court orders an independent appraisal under CCP section 874.316. The appraiser values the property at fair market value as of the date of the appraisal. After the appraisal is complete, the court notices the determination to all parties.

Cotenant Buyout Period

Next, the non-petitioning cotenants have 45 days to elect to purchase the petitioning party’s share at the appraised value. If multiple cotenants elect, they purchase in proportion to their existing interests. After election, they have additional time to fund and close the buyout.

Resolution

Finally, one of three things happens. First, the non-petitioning cotenants complete the buyout, and the case ends with the property remaining in their hands. Second, the parties negotiate a different settlement during the process. Third, the case proceeds to sale, in which case the open-market sale procedures of CCP section 874.320 apply.

The “Great Prejudice” Test for Partition in Kind

Even after the Partition of Real Property Act, California courts still prefer partition in kind over partition by sale where possible. Specifically, the court must consider whether partition in kind would result in “great prejudice” to the cotenants.

CCP section 874.319 lists the factors a court evaluates:

• Whether the property can practically be divided among the cotenants
• Whether partition in kind would significantly reduce the property’s total value
• Evidence of the cotenants’ relationship to the property and history of ownership
• Sentimental attachment to the property
• Long-term cultural, historical, or religious ties

In practice, partition in kind is rarely feasible for residential or commercial real estate. After all, you cannot meaningfully cut a single-family home into pieces. However, for larger parcels of land, especially agricultural property or undeveloped acreage, partition in kind sometimes works.

For high-value urban California real estate, partition by sale remains the standard outcome.

Strategic Implications for High-Value California Property Owners

The Partition of Real Property Act has several strategic implications for high-net-worth Californians.

The buyout right favors deep pockets. If you have the liquidity to fund a buyout at appraised value, the Act significantly improves your position. So when a sibling files partition on an inherited Beverly Hills property, you can now keep the property by paying the appraised value, rather than competing at auction.

Appraisal selection matters more than ever. The appraised value now controls multiple critical decisions. So choosing the right appraiser, and effectively challenging the wrong one, often moves valuations by ten to twenty percent. On a $4 million property, that is a six-figure swing.

Timing creates leverage. The 45-day buyout election period creates urgency. As a result, sophisticated co-owners use this period to negotiate alternative settlements while the buyout clock runs.

Open-market sales protect equity. For co-owners who actually want the property sold, the new open-market requirement preserves market value. So even contested sales now produce prices that reflect true property value.

Privacy is harder to maintain. Open-market sales become part of the public record. So high-profile co-owners who want to avoid publicity may prefer to negotiate a private resolution before the sale process begins.

How the Partition of Real Property Act Affects Common Co-Ownership Scenarios

The Partition of Real Property Act applies across a wide range of co-ownership situations. Here is how it plays out in the most common scenarios.

Inherited Family Property

When multiple heirs inherit California real estate, the Partition of Real Property Act typically applies. So any heir can file for partition. However, the buyout right also means that heirs who want to keep the property in the family now have a clear procedural path to do so.

For example, three siblings inherit a Pelican Hill home from their parents. One sibling wants to sell. The other two want to keep it. Under the old statute, the sale would likely happen, and the property might sell at auction. Under the Partition of Real Property Act, the two remaining siblings can buy out the third at appraised value and keep the property.

Investment Property with Co-Investors

The Act also applies to investment properties held by multiple investors as tenants in common. For instance, a TIC arrangement holding a Los Angeles apartment building falls under the Act. So when one investor wants out, the others have the option to buy that investor’s share at appraised value.

This changes the dynamics of TIC investment significantly. Specifically, the buyout right gives remaining investors more control over the asset’s disposition.

Divorced Spouses Still on Title

After a California divorce, former spouses sometimes remain co-owners of real property. Specifically, this happens when the divorce decree did not require an immediate sale or transfer. So both parties remain on title as tenants in common.

In these cases, the Partition of Real Property Act applies. As a result, either former spouse can force partition, but the other has the right to buy out the petitioning party’s share. This is often a better outcome than a forced sale, particularly when one spouse wants to remain in the family home.

Romantic Partners with Joint Property

Unmarried partners who purchased property together also fall under the Act. So when the relationship ends, either partner can file for partition. Then the buyout right gives the partner who wants to keep the property a path to do so.

Common Misconceptions About the Partition of Real Property Act

Several misconceptions about the Partition of Real Property Act circulate widely. Here are the most common ones.

“The Act eliminated partition actions.” False. Partition is still available. However, the procedural rules now favor preservation of market value and provide a buyout opportunity for non-petitioning cotenants.

“I can stop a partition by refusing to participate.” False. A non-petitioning cotenant who fails to elect the buyout simply gives up that right. The case still proceeds. So ignoring the lawsuit is the worst possible strategy.

“The Act only protects family property.” False. While the original Uniform Act focused on heirs property, the California Partition of Real Property Act applies to all tenancy-in-common property without a written partition agreement.

“The buyout right means I can keep the property indefinitely.” False. The buyout right comes with strict deadlines and financial requirements. So you must have the liquidity and motivation to execute on the buyout, or you lose the option.

“The appraised value is final and cannot be challenged.” False. Parties can object to the appraisal. However, the court must rule on the objection, and successful challenges require credible evidence of valuation error.

How to Avoid the Partition of Real Property Act: The Written Agreement Carve-Out

The Partition of Real Property Act does not apply when the co-owners have signed a written agreement that governs partition. So sophisticated co-owners can opt out of the Act by including the right provisions in their ownership documents.

For tenancy-in-common arrangements, a TIC agreement can specifically address partition. For example, the agreement might require advance notice of intent to file, mandate an internal buyout process before litigation, or specify particular valuation methods.

With LLCs holding California real estate, the operating agreement can include similar provisions. So even though the LLC owns the property rather than individuals directly, the operating agreement controls disposition.

For families considering joint property ownership, an attorney-drafted agreement at the outset can prevent significant future disputes. After all, the cost of drafting such an agreement is far less than the cost of litigating a contested partition under the Act.

When to Call a California Partition Attorney

If any of the following is true, then you should speak with a California partition attorney experienced in the Partition of Real Property Act:

• You co-own California real estate with someone who wants to sell, and you want to keep the property
• You co-own California real estate with someone who refuses to sell, and you want to sell
• You inherited California real estate with relatives who disagree about disposition
• You are facing a partition action that another co-owner already filed
• You want to structure a co-ownership arrangement to avoid future partition disputes
• You believe the appraised value in your partition case is incorrect
• You want to exercise the cotenant buyout right under the Act

At Rokita Law P.C., we represent California co-owners in partition actions throughout Los Angeles County, Orange County, San Diego County, and Southern California. So whether you are filing, defending, or negotiating, our real estate litigation team understands the strategic implications of the Partition of Real Property Act for high-value property.

From our offices in Beverly Hills and Newport Beach, Amanda Rokita and her team advocate for co-owners facing complex partition disputes. For a step-by-step walkthrough of the partition process itself, see our companion guide on how to force the sale of a co-owned property in California. For additional context on our firm’s partition practice, see our overview on filing a partition action with our firm.

To discuss your situation in a confidential consultation, schedule an appointment online or call (888) ROKITALAW.

This article is for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship with Rokita Law P.C. Every California partition action involves unique facts and circumstances. So you should consult a qualified California real estate litigation attorney before taking action.