Real Estate Litigation
Partition Actions for Jointly Owned Property in NC
What Is a Partition Action?
When two or more people own real estate together and cannot agree on how to use, manage, or sell the property, any co-owner has the right to file a partition action β a lawsuit asking the court to divide or sell the property over the objection of the other owners. Partition is recognized in North Carolina as an absolute right of any co-tenant; a co-owner generally cannot be compelled to remain in ownership indefinitely against their will.
North Carolina’s partition procedures are governed by N.C.G.S. Chapter 46A, the Partition of Real Property Act, which was substantially revised effective 2021.
Types of Partition
Partition in Kind (Physical Division)
The court divides the property into separate parcels, deeding each co-owner a portion corresponding to their ownership interest. Partition in kind is preferred under Chapter 46A when it is practicable and not manifestly prejudicial to the co-owners. It is most common with large tracts of undeveloped land where a survey can create distinct lots of equal value.
Partition by Sale
When the property cannot be physically divided without significant loss in value β as with most residential homes, commercial buildings, or smaller lots β the court orders the property sold and the proceeds divided among co-owners in proportion to their interests. Under Chapter 46A, the court must find that partition in kind would either be impracticable or would result in manifest prejudice before ordering a sale.
Who Brings Partition Actions?
Partition actions commonly arise from:
- Inherited property: Siblings or other heirs inheriting a home or farm together, with disagreement about whether to sell or retain it
- Unmarried co-owners: Former romantic partners or business partners who purchased property together and have since parted ways
- Tenants in common in commercial or investment property: Co-investors who disagree on management, refinancing, or sale
- Dissolution of business entities that own real estate
Accounting for Improvements, Taxes, and Carrying Costs
In partition proceedings, the court can consider claims by one co-owner that they have contributed more than their share toward mortgage payments, taxes, insurance, maintenance, or improvements. These contribution claims can adjust the proportion of sale proceeds each co-owner receives, though North Carolina law on this issue involves nuance depending on whether the contributing co-owner had exclusive use of the property.
How We Can Help
Sherrill & Cameron represents co-owners seeking to partition property and co-owners responding to partition actions filed against them. We also represent heirs in partition proceedings arising from estates. Our services include:
- Evaluating partition rights and strategy before filing
- Filing partition complaints in Rowan County Superior Court
- Negotiating buyouts as an alternative to court-ordered sale
- Representing clients through commissioners’ hearings and court-ordered sales
- Accounting for contribution claims to maximize your share of proceeds
Stuck With a Co-Owner Who Won’t Sell?
Co-ownership disputes over real estate can be frustrating and financially costly. Sherrill & Cameron can help you understand your rights and pursue the outcome that makes sense for your situation. Call 704.633.5723.