While partition sale laws are designed to help promote and facilitate the fair distribution of what a shared property is worth, these same laws can be used in predatory ways. According to past records, partition sale laws have historically been leveraged against disadvantaged populations, especially in the American South, to pull the rug out from under rightful heirs who have homes passed down to them.
How would this type of law be used to take advantage of rightful homeowners? For generations, American southern families passed down their generational homes through informal inheritances and tradition rather than formal wills.
Unfortunately, when the transfer of property ownership isn’t legally or officially documented, it creates a confusing situation.
Per the law, when a homeowner dies without a will, the property will legally be transferred to all living descendants. Even if one particular family member is “gifted” the home, stays on it for years, and takes care of it, legally, the property still belongs to all the living heirs. Unlike a new deed that outlines specific property ownership, the legal title is fractured between multiple parties who may not even realize they have a legal right to the property.
Since this tradition became so widespread in the South, sometimes one generational home would be passed down unofficially over three to four generations. Legally, those conditions meant the home was technically owned by dozens, in some cases a hundred, partial owners.
A lack of a clear title can be the source of many problems. For one, true owners can struggle to receive any federal or state aid, since they can’t prove they legally own the home. For another, it opens up the property to potential predatory real estate developers.
If a company like this realizes that there isn’t a clear title on a home that’s been passed down for generations, then they might be able to convince one family member to sell them their share of the property. Once the developer has a stake in the property, they can force a partition sale.
Partition sales operate on the notion that no one should be forced to continue in a business venture or shared property ownership that they don’t want to be a part of.
When that happens, a partition sale seems like a fair option because it forces the sale of the property and gives a rightful percentage of value to each party. Unfortunately, this legal process can essentially force residents who have lived in a family home for years out of their own property.
Do You Need Legal Help With Your Partition Action?
If you’ve found yourself in a similar situation, then you might be able to rely on the Uniform Partition of Heirs Property Act to protect your rights. This law was designed specifically to combat the weaponization of partition lawsuits. This law is currently in place in 24 states and the District of Columbia.
If you’re currently struggling with an ongoing partition action or you’re worried about being taken advantage of, then we can help. Fill out our online form now to receive a call from our team.