Partition Actions and Ownership by Business Entities in California
By
| June 3, 2024
As a real estate attorney with 28 years of experience, I often receive inquiries about partition
actions. It is important to understand that in California, partition actions are available only if the
property is owned directly by individuals or entities as tenants in common or joint tenants. If the
property is owned by an LLC or a corporation, partition actions to separate the property between
the owners of the entity are not available.
When properties are held by an LLC or corporation, the rights and remedies for separating
ownership interests lie within the structure of the business entity itself. This typically involves
dissolving the entity or negotiating buyouts among members or shareholders. Therefore, the
conventional partition action, which applies to co-owned properties on title, is not a legal remedy
in these cases.
For individuals dealing with property ownership disputes within an LLC or corporation,
consulting a real estate attorney is crucial. A real estate attorney can guide you through the legal
complexities and explore alternative solutions to resolve ownership disputes effectively, such as
mediation or even arbitration.