Seeking Advice on Partition Action for Family Property Dispute

[Sa'Mara Roberts]

Hi everyone,

I’m in a difficult situation regarding a family property and would appreciate some advice on whether filing a suit for partition is best for me. Here’s the background:

Background:

• Property Ownership: In October 2021, my grandmother purchased a property in cash for both my aunt and me, and she also paid for all the repairs and renovations, which were completed in the summer of 2022. However, there was no formal agreement or contract between us regarding the ownership or any financial details related to the property. The purpose was for us to fix up the property and to flip it.
• Ownership Structure: My aunt and I are joint tenants, each holding a 50/50 ownership stake in the property. However, I am the primary owner.
• Current Situation: My aunt’s daughter (my cousin) lives in the house rent-free. Before that, a friend of my cousin lived there rent-free as well.
• Attempts to Resolve the Issue: I’ve made three attempts to resolve the situation by speaking with my aunt about either selling the property or negotiating a buyout of my share. Unfortunately, these conversations ended poorly, and we are no longer in contact. The situation escalated to the point of receiving death threats, so I no longer feel comfortable communicating with her.

My Goal: I want to determine if filing a partition action is the right path forward to either sell the property or have my share bought out. I want to resolve this situation as efficiently and fairly as possible.

Questions:

1. Partition Action: Given that my aunt and I are joint tenants with a 50/50 split and there’s no formal contract, is filing a partition suit the best next step? What should I be aware of before proceeding with a partition action? The only paperwork I have with this is the paperwork from our closing showing this.
2. Renovation Costs: Since my grandmother paid for both the purchase and the renovations, how would this factor into a partition action or any buyout? Without a written record of this arrangement, is there a way to claim any compensation for those renovation costs, or would that be difficult to prove in court? *My Grandma also pays the property taxes; I really have no knowledge of what's going on here with this property outside of people living there rent-free.
3. Next Steps: What are the typical steps involved in initiating a partition action? Should I first consult with an attorney to discuss my options, or can I move forward directly with legal action?

While I’ve gained more experience in real estate over the past couple of years, I still want to ensure I’m handling this situation correctly. Any advice, insights, or suggestions would be greatly appreciated. Thanks in advance for your help!

[Abel Curiel]

Hello @Sa'Mara Roberts,

This is a tough situation to be in, but it seems you're being forced to file a partition. 

*This is not legal advice!*

If your aunt was cooperative, you may have been able to form some formal operating agreement... although I am not sure how that operating agreement would hold up in your state.

1. Although I am not a legal expert and am not familiar with Michigan state laws, I think a partition could be helpful if it leads to pleading your case in front of a judge who can ultimately decide. This is better than not speaking with your aunt, letting the problem linger and likely worsen.

From my experience, in New York, the ultimate decision will depend on many factors and Liberal judges (as told to me by others with way more experience in these matters) can rule in favor of someone with a sob story. i.e. Your aunt does not want to agree to sell the house b/c of a partition since it will leave her daughter out on the streets.

Gather the paperwork you have and speak with a reputable attorney with experience in these matters. BiggerPockets' search option is a good start if you want to speak with people in the community.

2. In an ideal situation, you and your aunt would each pay back your fair share to your grandmother or each other. i.e. each of you share X% of your sale profits to your Grandma OR you and your aunt split the past expenses (taxes, other holding costs, renovation, expenses, etc.) with your grandmother and pay her back. 

Your attorney should be able to help with this as they will likely want to get an itemized list of projected past expenses.

3. You can look into civil court or housing court to find out more about the process. 

Here in New York, it's kind of up in the air. 

While you can file a partition suit independently, some may strongly recommend working with an attorney for a faster/more efficient process. I've also spoken to attorneys who say that judges have more sympathy for people who represent themselves in these kinds of matters.

I'd say look into how you can do it yourself AND speak to multiple attorneys for their input (most first consultations are complimentary) THEN decide how to move forward with the partition.

All the best!

Abel