Texas Partition Actions: How to Force the Sale of Co-Owned Property
When co-owners can't agree on what to do with property, a partition action forces a resolution. Learn how Texas partition lawsuits work and how investors use them to acquire heir property.
A partition action is a lawsuit that forces the division or sale of property when co-owners can't agree. In Texas, partition is a powerful legal tool that investors use to resolve deadlocked heir property situations and acquire real estate that would otherwise be stuck in ownership limbo.
This guide explains how partition actions work in Texas, what they cost, how long they take, and how investors strategically use them to unlock property deals.
What Is a Partition Action?
A partition action (also called a partition suit or partition lawsuit) is a legal proceeding that divides co-owned property among the owners. Any co-owner can file for partition—you don't need a majority or even a significant ownership stake.
There are two types of partition:
Partition in Kind
The property is physically divided among the co-owners. Each owner receives a portion of the land. This works for:
- Large rural parcels that can be subdivided
- Properties with multiple structures
- Land where physical division is practical
Partition by Sale
The property is sold and the proceeds divided among co-owners according to their ownership shares. This is used when:
- Physical division isn't practical (single home, small lot)
- Division would destroy the property's value
- Co-owners prefer cash to divided land
In practice, most partition actions involving residential property result in partition by sale because houses can't be physically divided.
Who Can File for Partition in Texas?
Any co-owner of real property can file a partition action. This includes:
- Joint tenants - Owners who hold title together
- Tenants in common - Owners with separate, undivided interests
- Heirs - People who inherited fractional interests
- Investors - Anyone who purchased an ownership interest
No Minimum Ownership Required
This is crucial: you don't need a majority interest to file. An owner with a 1% interest has the same right to partition as an owner with 99%. The courts recognize that co-ownership is inherently problematic and give any owner an exit.
This is why partition is so powerful for investors. You can purchase a single heir's small interest and use it to force resolution of the entire property.
The Texas Partition Process Step by Step
Here's how a partition action typically proceeds in Texas:
Step 1: File the Lawsuit
The partition action is filed in the district court of the county where the property is located. The petition must:
- Identify the property (legal description)
- List all known co-owners and their interests
- State the plaintiff's interest and how it was acquired
- Request partition (either in kind or by sale)
Filing fees: $300-$500 depending on county
Step 2: Serve All Co-Owners
Every co-owner must be served with the lawsuit. This can be challenging with heir property where some owners are unknown or can't be located. Options include:
- Personal service by constable or process server
- Service by certified mail
- Service by publication (for owners who can't be found)
Cost: $50-$200 per defendant for personal service; $200-$500 for service by publication
Step 3: Appoint Attorney Ad Litem (If Needed)
If any co-owners are minors, incapacitated, or unknown, the court appoints an attorney ad litem to represent their interests. This protects people who can't protect themselves.
Cost: $1,500-$5,000+ depending on complexity
Step 4: Determine Ownership Interests
The court determines each co-owner's percentage interest. For heir property, this may require:
- Affidavits of heirship
- Genealogical research
- Determination of heirship proceedings
If ownership is disputed, this step can add significant time and cost.
Step 5: Appraisal (Under UPHPA)
Under the Texas Uniform Partition of Heirs Property Act (UPHPA), if the property qualifies as "heirs property," the court must order an appraisal. The appraiser determines fair market value.
Cost: $400-$1,000+ depending on property type
Step 6: Buyout Opportunity (Under UPHPA)
Before ordering a sale, co-owners who didn't file for partition have the right to buy out the petitioner's interest at the appraised value. They have 45 days to exercise this right.
In practice, most heirs can't afford to exercise buyout rights, so the process continues to sale.
Step 7: Court Orders Partition
The court issues an order determining:
- Whether partition will be in kind or by sale
- How the sale will be conducted (if applicable)
- Who will handle the sale (commissioner, receiver, or broker)
Step 8: Property Sale
If partition by sale is ordered, the property is sold. Under UPHPA, courts prefer "commercially reasonable" sales (open market with a broker) over courthouse auctions. The sale process typically takes 3-6 months.
Step 9: Distribution of Proceeds
After the sale, proceeds are distributed:
- Court costs and attorney fees
- Sale expenses (broker commissions, closing costs)
- Liens and encumbrances (taxes, mortgages)
- Remaining proceeds to co-owners by their percentage
Timeline and Costs
Typical Timeline
| Phase | Duration |
|---|---|
| Filing and service | 1-3 months |
| Determine ownership | 2-4 months |
| UPHPA procedures | 2-3 months |
| Court order | 1-2 months |
| Property sale | 3-6 months |
| Total | 9-18 months |
Contested cases with disputed ownership can take 2+ years.
Typical Costs
| Expense | Cost Range |
|---|---|
| Attorney fees | $5,000-$25,000+ |
| Filing fees | $300-$500 |
| Service of process | $500-$2,000 |
| Attorney ad litem | $1,500-$5,000 |
| Appraisal | $400-$1,000 |
| Title search/report | $500-$1,500 |
| Sale costs (broker, closing) | 6-10% of sale price |
| Total (excluding sale costs) | $8,000-$35,000+ |
Note: These costs are typically paid from the sale proceeds, not out of pocket. But they reduce what everyone receives.
The Texas Uniform Partition of Heirs Property Act
Texas adopted the Uniform Partition of Heirs Property Act (UPHPA) in 2017 to protect families from losing heir property through partition. It applies when:
- There's no written agreement governing partition
- One or more co-owners acquired their interest from a relative
- At least 20% of interests are held by relatives of other co-owners
Key UPHPA Protections
Mandatory Appraisal
The court must order a professional appraisal to determine fair market value. This prevents properties from being sold at artificially low prices.
Right to Buy Out
Before forcing a sale, non-petitioning co-owners can buy out the petitioner at appraised value. They have 45 days to notify the court and 60 days to complete the purchase.
Preference for Open Market Sale
If sale is ordered, courts should prefer commercially reasonable open market sales over courthouse auctions. This typically yields better prices.
Factors Courts Consider
When deciding between partition in kind vs. sale, courts consider:
- Whether any co-owner has made improvements
- Whether any co-owner uses the property as their home
- The sentimental value to co-owners
- The practicality of physical division
Impact on Investors
UPHPA adds time and cost to partition actions, but doesn't prevent them. Strategic implications:
- Budget for longer timelines: Add 2-3 months for UPHPA procedures
- Buyout risk is low: Most heirs can't afford to exercise buyout rights
- Better sale prices: Open market sales may yield more than auctions
- Document everything: Courts scrutinize investor-initiated partitions
Investor Strategies for Partition Actions
Investors use partition actions in several strategic ways:
Strategy 1: Acquire Interest, Then Partition
The most common investor approach:
- Identify heir property with multiple owners
- Purchase one or more heir interests at a discount
- Attempt to negotiate with remaining heirs
- If negotiation fails, file partition action
- Buy property at partition sale (or profit from sale proceeds)
Key insight: You only need to buy enough interest to justify the partition costs. Even a 10-20% interest can work if the property value supports the legal expenses.
Strategy 2: Fund Another Owner's Partition
If an existing co-owner wants to force a sale but lacks resources:
- Identify a motivated co-owner
- Offer to fund their partition action
- Get an option to purchase the property or their proceeds
- Let them file as plaintiff (avoids some UPHPA scrutiny)
This can be faster than buying interest first, but requires finding the right co-owner.
Strategy 3: Buy at Partition Sale
Even without owning any interest:
- Monitor court records for partition actions
- Research properties being partitioned
- Attend partition sales and bid
- Acquire properties at potential discount
This is more passive but requires monitoring multiple courts and competing with other bidders.
Strategy 4: Negotiate Settlement to Avoid Partition
Sometimes the threat of partition creates negotiating leverage:
- Acquire a partition-worthy interest
- Send formal notice of intent to partition
- Offer to buy out other owners at reasonable price
- Many prefer selling to you over partition uncertainty
This can be faster and cheaper than full partition litigation.
Defending Against Partition
If you're a co-owner facing partition, options are limited but exist:
Exercise Buyout Rights
Under UPHPA, you can buy out the petitioner at appraised value. You need financing ready to act quickly.
Challenge Standing or Ownership
If the petitioner's ownership claim is questionable, you can contest it. This adds cost and delay but may be worthwhile.
Argue for Partition in Kind
If physical division is possible, push for it. You'll keep your portion of the land rather than just receiving cash.
Negotiate Settlement
Even after filing, parties can settle. You might buy out the petitioner or agree to sell to a specific buyer at negotiated terms.
What You Cannot Do
You cannot simply refuse partition. Texas law gives every co-owner the absolute right to partition. The only question is how (in kind vs. sale) and at what price.
Finding Partition Opportunities
Court Records
Search district court records for partition cases. Many counties have online dockets. Look for:
- Cases filed under "partition" or property-related causes of action
- Cases naming multiple defendants with same surname
- Real property descriptions in rural or urban heir property areas
Heir Property Research
Identify heir property situations before others do:
- Properties with deceased owners still on record
- Long-term tax delinquencies
- Properties with "heirs of" or "estate of" designations
Heir Outreach
Contact heirs of target properties:
- Skip trace using public records
- Send letters explaining the situation
- Offer to purchase their interest
Attorney Referrals
Real estate attorneys often encounter clients with unsellable heir interests. Build relationships with attorneys who can refer these situations to you.
Common Partition Mistakes
1. Underestimating Costs
Legal fees, service costs, and ad litem fees add up. Budget $15,000-$30,000 minimum for a contested partition. Make sure the property value supports this.
2. Incomplete Heir Research
Missing heirs delays everything. If unknown heirs appear later, they may have claims. Do thorough genealogical research before filing.
3. Ignoring UPHPA Requirements
Failing to follow UPHPA procedures can get your case dismissed or delayed. Work with an attorney experienced in heir property partition.
4. Antagonizing Co-Owners
Aggressive tactics may be legal but create enemies who fight harder. A respectful approach often leads to faster, cheaper resolution.
5. Wrong Property Selection
Not every heir property is worth partitioning. The math must work: property value minus costs minus your acquisition cost must leave profit.
Example Partition Timeline
Here's a realistic example of an investor partition:
The Property
- Single family home in South Dallas
- Market value: $180,000
- Owner died in 2005, no probate
- 5 known heirs (20% each)
The Process
| Month | Action | Cost |
|---|---|---|
| 1 | Purchase 2 heir interests (40% total) at $15,000 each | $30,000 |
| 2 | Attempt to negotiate with remaining 3 heirs - unsuccessful | $0 |
| 3 | File partition action | $400 |
| 3-4 | Serve all defendants | $600 |
| 5 | Attorney ad litem appointed for unknown heirs | $2,500 |
| 6 | Appraisal ordered and completed ($175,000 value) | $500 |
| 7-8 | Buyout period expires - no heirs exercise | $0 |
| 9 | Court orders partition by sale | $0 |
| 10-12 | Property listed and sold for $170,000 | $10,200 (6%) |
| 13 | Closing and distribution | $2,000 |
The Numbers
- Sale proceeds: $170,000
- Less costs: -$16,200 (partition costs, sale costs)
- Net proceeds: $153,800
- Investor share (40%): $61,520
- Less acquisition cost: -$30,000
- Less attorney fees: -$8,000
- Net profit: $23,520
Total time: 13 months. Return on $38,000 invested: 62%.
Conclusion
Partition actions are a powerful tool for resolving deadlocked property ownership. For investors, they provide a legal mechanism to unlock value in heir property situations where traditional sales aren't possible.
Success requires:
- Understanding the legal process and UPHPA requirements
- Accurate cost and timeline projections
- Thorough heir research before filing
- Working with experienced legal counsel
- Patience—these deals take 9-18 months minimum
The investors who master partition strategy gain access to a category of deals that most buyers can't touch. It's not quick or easy, but the math often works for those willing to do the work.
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