When co-owners of real property reach an impasse and cannot agree on what to do with a shared asset, the legal system provides a structured path forward. Understanding how the partition referee process unfolds — from the initial filing through the final distribution of proceeds — can help co-owners, their attorneys, and other stakeholders know what to expect at each stage.
Step One: Filing the Partition Action
The process begins when one or more co-owners decide they can no longer resolve the dispute on their own. At that point, they will typically consult a real estate attorney, who may advise filing a partition lawsuit. The lawsuit includes a partition cause of action — a formal legal claim asking the court to intervene in the co-ownership dispute and compel a resolution.
As part of that filing, the petitioning party may nominate one or more specific individuals to serve as partition referee. However, the nomination is advisory. The final appointment decision rests entirely with the court, which will select the referee it determines is best suited to the matter.
Step Two: The Court Appoints a Referee
Once the court validates the partition claim and determines that appointment of a referee is appropriate, the referee is formally appointed and authorized to act. This typically happens after it becomes clear that the parties have reached a genuine deadlock — a point where continued negotiation is unlikely to produce a voluntary resolution and the court's intervention is necessary to move things forward.
From the moment of appointment, the referee operates as a neutral officer of the court, with a mandate to bring the dispute to an orderly and equitable conclusion.
Step Three: Managing and Preserving the Property
Before the property can be sold, the referee may need to stabilize and manage it. Depending on the type and condition of the property, this can involve conducting inspections to assess its physical condition, addressing any deferred maintenance or code compliance issues that could affect marketability, managing existing tenants and collecting rental income if the property is occupied, and taking whatever steps are necessary to preserve the property's value while the sale is being prepared.
This interim management role is especially important when the co-owners' conflict has led to neglect, when one party has been occupying the property to the exclusion of others, or when the property requires active oversight to maintain its value.
Step Four: The Sale Process
The partition referee's primary objective in most cases is to sell the property and distribute the proceeds. To accomplish this, the referee is authorized to hire a real estate broker, set a listing strategy, negotiate offers, and ultimately execute the sale — all under the court's supervision. The goal is to achieve a fair market sale that serves the interests of all co-owners, regardless of their individual preferences about timing or outcome.
Because the referee is a neutral party with no stake in the outcome, the sale process is insulated from the personal dynamics and competing agendas that made resolution impossible in the first place.
Step Five: Accounting and Distribution
Once the property is sold, the referee oversees an accounting process in which each co-owner's financial claims are carefully evaluated. This includes credits for expenses one party paid on behalf of the others, reimbursements for improvements made to the property, and any deductions owed based on one party's use or misuse of the property.
After all claims are resolved, the net proceeds are distributed to the co-owners in accordance with the court's orders. The accounting phase is often where the most contested financial issues surface, and having a neutral referee to manage it helps ensure the outcome is grounded in equity rather than leverage.
What the Process Means for the Parties Involved
For co-owners caught in a property dispute, the partition referee process can feel daunting — particularly if they've never been involved in litigation before. But in practice, the appointment of a referee often brings a sense of relief. The gridlock ends, a clear process takes over, and the path to resolution becomes predictable even if it isn't always what every party hoped for.
For attorneys advising clients in co-ownership disputes, understanding the partition referee process — and knowing when to recommend it — is an essential part of guiding clients toward the most efficient and equitable outcome available to them. Contacts us today if you or your clients are facing similar issues.
