What Is a Partition Referee? What is a Receiver?

 


A partition referee is an independent third party that may be appointed by a court when jointly owned real estate, also known as co-owned property, is partitioned, or divided up. Partition refers to the legal process where real estate that is owned by two or more people as joint tenants or tenants in common is divided into separate portions or sold, with the proceeds distributed among the co-owners.
Who is a Partition Referee?

When a partition lawsuit is filed by one of the co-owners to divide or sell the property, often the co-owners cannot agree on how to divide the property evenly or fairly. In this case, the court has the power to appoint a referee, who is often a real estate professional or lawyer, to oversee and handle details of the partition process.

The key responsibilities of a partition referee may include:

  •     Inspecting the property and investigating title/ownership issues
  •     Determining if the property can be physically partitioned or divided based on parcel size, shape, topography, or other factors
  •     Obtaining professional appraisals of the land value
  •     Calculating and recommending how the property could potentially be divided amongst owners
  •     Overseeing bidding process if property is sold at open court auction
  •     Ensuring proceeds of sale are distributed fairly per each co-owner’s share

Why Should You Hire a Partition Referee?

A partition referee handles the complexity of carrying out property division, allowing the court to make a final binding judgement on how the co-owned real estate will be divided or sold off. Their oversight aims to resolve partition disputes in a cost-effective and impartial way.

A receiver is a neutral third-party custodian who may be appointed by a court to temporarily take control and manage real property that is subject to foreclosure or litigation over ownership rights. A receivership gives the court greater control over the asset.

Common reasons a court appoints a receiver include:

  •     The current owner has defaulted on their mortgage or property taxes
  •     There is significant income like rent that needs proper collection from the property
  •     Mismanagement or improper use of the property under the current owner
  •     As part of bankruptcy, divorce litigation or a business partnership dispute

Responsibilities the court may grant the receiver include collecting rents, evicting tenants, making repairs, insuring the property is maintained properly, preventing waste or deterioration, selling the property, or collecting income to satisfy unpaid mortgage/debts. The receivership protects value for creditors and owners with a stake in the real estate asset during the legal dispute/process.

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