I specialize in partitions in the Sacramento area. I've been doing partitions for roughly 15 years. We're seeing an uptick in the number of judicial actions. I wonder if there's is any correlation with this and the market, but I wouldn't think so. These situations arise mostly with inherited property. Siblings that inherit their parents' house and there's one member who doesn't want to sell. I'm seeing more unmarried couples dealing with partition actions. When they break up, one typically stays in the house and the other is tied financially to that property and wants out.
I'm currently assigned to 5 partitions right now. Partitions actions are typically a slow process, but I'm not involved until the court assigns a referee. Usually, it's the plaintiffs' attorney who recommends me to the court to be the referee; however, I've been recommended by the defendants' council the past several cases.
Referee fees can get expensive! Depending on the area referees tend to charge $400-$500 an hour. After all is said and done it adds up to $20,000 - $30,000. I charge a flat rate of 1% of the sales price. Attorney's and clients like this as they know what they are going to be charged. It's a good deal for them. I'm able to give a good discount on the referee fee as I am also the listing agent and make 2.5% for that duty. I really think it's a win for everyone.
I've lost count of the number of cases I've done over the years. I'd say I do around 3 a year on average. I'm guessing I've done a couple dozen. 24-30 cases now is right. There's usually only around 12 cases a year in our area, but certainly more this year as I have 5 right now.
The best thing one can do is to properly document all the money you have put into the property in question. The accounting phase is the most difficult part of being a referee. I need to be fair to all parties and look to distribute the funds in the most appropriate way. There are many factors at play: Mortgage payments, taxes, loss of use, rental income, maintenance...
If you have questions about the partition process, I'm happy to help.
