Toll Free:

(844) 914-4143

(310) 914-4143

12100 Wilshire Blvd., Suite 410, Los Angeles, CA 90025

Partition Actions and Ownership by Business Entities in California

By Shab D. Kerendian | June 3, 2024

post-img

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.