Have you and an acquaintance ever thought about investing in real estate? Have you ever pooled a shared amount of funds for certain property, but came to a disagreement and had to go separate ways? Well if so, you will likely encounter some problems settling that shared property. With experience and an acceptable amount of knowledge of the law, you can decide on the most proper solution for dealing with this problem. When in a dispute between your co-investor you may file for an “action for partition” in regards to shares of ownership in a certain collected investment.
Much like the meaning of the word: To divide; this act is brought to court by the claimant or shared property/investment owner to legally divide said property fairly among the shareholders. This is the best, legal way to come into an agreement with your peers if you can’t decide among yourselves; the court of law will review your involvement in the property’s investment and divide it accordingly with that taken into heavy consideration. That or the property goes into public auction and the proceeds are then divided by the owners.
What could happen in a partition dispute?
Just to give an example about how all of this works: You and a friend have invested on condominiums at the outskirts of the city since the building is fairly new, and the residential area is only a subway ride away from the business district of town. It seemed like a great idea at the time; until one day, your co-investor begins missing payments for what was supposed to be a “shared investment”— you end up shouldering most of the weight because of this. At this point you should make the decision to file for an “action for partition” because he may start pushing that you are both still 50-50 partners, refusing to pay you back for the costs you have covered for him.
Property litigation disputes are one of the more common risks in investment if you and your partner aren’t on the same page; you should not have to accept that, and take it upon yourself to file an action of ownership for your investment. The court will see to it that the ownership allocation is in accordance to the amount paid for by each investor.
What to do?
If ever you find yourself in a situation like this one, you shouldn’t be afraid to opt out. Other disputes of legally bound couples are also settled in a partition of action as well; be it the right of property after divorce, or the rights of survival if a marital partner passes away, but such conditions only complicate the transfer of ownership.
If you have any type of litigation issues concerning real estate, such as partition or ownership disputes, your wisest course of action is to consult with a real estate lawyer to assist in your case. Each case is unique and may require lots of time, paperwork, and visits to the court. As tempting as it is to try and reason out things with the other party, there are times when people cannot come into an agreement and a professional can help you to mediate.