When co-owners cannot agree on what to do with a shared property—whether it is an inherited home, an investment, or a property owned by former partners—the court may intervene and order what is known as a partition sale. This process ensures that all parties receive their fair share, but it follows a structured legal procedure under California law.
Below is an overview of how the process typically works.
Step 1: Filing for Partition
A co-owner, referred to as the plaintiff, files a partition action with the court requesting that the property be divided or sold. In most residential cases, selling the property and dividing the proceeds is the fairest and most practical option.
Step 2: Court Appoints a Partition Referee
Once the court determines that the property should be sold, it appoints a Partition Referee—a neutral real estate professional authorized to oversee the marketing and sale.
The referee’s responsibilities include:
- Selecting the real estate agent (if not serving in that role themselves)
- Establishing the list price and marketing strategy
- Approving offers and ensuring compliance with court requirements
- Reporting all actions and recommendations back to the court
In many cases, the Partition Referee also serves as the court-appointed REALTOR®, handling both the referee duties and the listing process. This dual role provides consistency, efficiency, and cost savings while ensuring transparency and court compliance throughout the sale.
Step 3: Preparing and Listing the Property
Before the property is listed, the referee or agent gathers essential documentation, including:
- A copy of the court order appointing the referee
- Contact information for all owners and attorneys
- Access to the property (keys or lockbox)
- A recent title report and information on any liens
- Condition disclosures, if available
Once these items are in place, the property is professionally listed on the MLS and marketed to achieve maximum exposure and value.
Step 4: Marketing and Offer Review
Interested buyers submit offers that are reviewed by the referee, and in some cases, the court or the parties’ attorneys. The referee ensures that all offers comply with the court’s conditions and that the process remains fair and transparent.
When required, the referee will submit a Report of Sale to the court recommending acceptance of an offer and requesting confirmation.
Step 5: Court Confirmation (If Required)
Some partition sales must be confirmed by the court before the transaction can close. In these cases:
- A hearing is typically scheduled within 30 to 45 days of the referee’s report.
- The court may allow overbidding during the hearing.
- Once confirmed, the sale proceeds through escrow like a standard transaction.
Step 6: Closing and Distribution of Proceeds
After the sale closes, escrow disburses funds according to the court’s order:
- Liens, loans, and closing costs are paid first.
- Remaining net proceeds are distributed among the co-owners as determined by the court.
- The referee files a Final Report and Accounting verifying that all funds were properly handled.
Typical Timeline
| Stage | Estimated Duration |
|---|---|
| Filing to Court Appointment | 30–90 days |
| Listing and Marketing | 2–6 weeks |
| Offer Review and Court Confirmation | 30–45 days |
| Escrow and Closing | 30 days |
| Total Average Time | Approximately 3–6 months |
Final Thoughts
A court-ordered partition sale can be complex, particularly when multiple owners and legal professionals are involved. Having an experienced real estate professional who understands the process—and the court’s expectations—can make the transaction significantly smoother.
As a court-appointed Partition Referee and licensed REALTOR®, I manage communication between attorneys, co-owners, and the court while ensuring that the property sells for maximum market value and the process remains efficient and compliant.
If you are facing a partition sale in California, I can help guide you through the process from court appointment to closing.
Need Guidance?
If you’re dealing with a co-owned property and unsure where to begin, I can help you understand your next steps, connect you with the right attorney, or oversee the sale once the court approves the process.
Jillian Robinson
REALTOR® | DRE# 01982012
Coldwell Banker Realty
Certified Probate & Trust Specialist
Cell: 916.642.3633
