Often, business partners co-own commercial real estate. This has numerous advantages, such as being able to spread the cost of investment, maintenance and development. However, when co-owners are not on the same page on these issues, complications can arise.
When the co-owners are unable to decide what should be done with their jointly-owned property, a partition action may be needed to resolve their legal dispute. Partition actions are governed by Chapter 64 of the Florida Statutes. There are three types of partition actions, as outlined below:
Partition by physical condition
One option that the courts in Florida have is to order a partition by physical condition. Essentially, this means dividing the property or land so that co-owners can manage their own decisions on their section of the property. Nonetheless, this is generally only useful in situations where the dispute involves larger pieces of land, rather than buildings.
It can be difficult to divide land fairly in terms of value, and this is even more difficult in cases of dividing a building or buildings. Thus, the courts in Florida may consider the following partition options.
Partition by sale
A partition by sale is one of the more common options the courts utilize. In short, this involves the property being auctioned and the proceeds being divided appropriately according to ownership stakes. In many cases, this can be a useful fresh start for business owners. But what if one owner doesn’t want to sell?
Partition by appraisal
A partition by appraisal allows a co-owner to buy out their business partner. This means that the buying owner has the option to continue running business operations from the property. The court will oversee the sale and appraise the property so that a fair price is reached for all parties.
As you can see, partition actions are not straightforward. It is essential to have legal guidance on your side to navigate the specific laws in Florida. We help business owners settle property disputes, contact us today for a consultation.