Texas Partition Action

Texas Partition Action Law: What You Need to Know

In Texas, co-ownership of real estate often leads to legal friction when parties disagree on the property’s future, so a partition action serves as the final legal remedy to dissolve these joint interests fairly. Under the Texas Property Code, the right to seek a partition is considered absolute for any joint owner.

This means you cannot be forced to remain in a co-ownership against your personal will. Whether you own land with family or business partners, the law provides a clear exit strategy.

The Two Pillars of Texas Partition

Texas courts generally categorize partition into two distinct methods based on the property’s physical nature.

Partition in Kind

This is the strategy most preferred in Texas law and courts. For each owner, it entails actually dividing the territory into smaller, separate plots. Large agricultural regions with consistent value and usefulness benefit greatly from this. Every owner receives a different deed for their particular share of the land.

Partition by Sale

If the land cannot be split fairly, the court orders a sale. This is typical for residential houses or small commercial buildings where physical separation is not feasible. The property is sold via a private listing or at auction to a buyer. The net profits from the sale are then dispersed among the owners according to equity.

Ownership Structures and Financial Split

The way you hold the title determines how the final proceeds or land will be divided.

• Joint Tenants: Under this structure, all owners usually own equal portions of the property.
• Tenants in Common: In this case, the ownership percentages could differ due to individual financial contributions or inheritance.

Accounting or contribution is critical in any Texas partition action case. One owner may have incurred more expenses for structural improvements or property taxes. The owner is entitled to seek reimbursement for these expenses during the partition litigation.

This ensures that the final allocation of proceeds reflects the actual financial reality of the co-ownership.

The Role of Lenders and Mortgages

Texas is a title-theory state, which means that banks or lenders have a significant interest in a deed of trust. When a mortgage exists, the bank is typically a necessary party in the litigation. Even though the bank cannot initiate a partition action, it must be included to preserve its lien.

Usually, the mortgage has to be paid in full before any co-owners receive their monetary shares. This ensures that co- owners do not evade their debt obligations to the bank through a court-ordered sale or partition.

Legal Costs and Representation

The court’s last decision largely determines who pays the costs of a Texas partition action. Court costs are often shared among the owners based on their ownership of the property. However, each party is usually responsible for its own attorney’s fees, unless special circumstances apply.

Because these cases involve complex title issues, having a Texas partition action lawyer is essential for success. As your lawyer, we ensure that your equity is calculated correctly and that the bank’s presence doesn’t stall the case.

Contact our Texas partition action lawyers today to legally secure your fair share of property equity.