Partition Auction | Propertylogy

Partition Auction

By on February 22, 2019

A partition auction is an auction which co-owners of a common property take part in to divide the property fairly.

This often happens when there are conflicts between partners, and disagreement on how the asset should be managed.

For example, a partner might feel that the land parcel is worth more and refuses to sell to a serious buyer, but another partner is insistent that it should be sold. Or the failure of partners to do their roles competently.

Rather than stick together, they have decided to split.

When these things occur, and there is no simple way to physically divide the investment property, a partition auction is an easier way out than taking the case to court.

As such, when real estate in auctioned off, the proceeds are then distributed to the owners according to what has been agreed on. Usually based on the percentage of ownership.

Owners are free to bid in the auctions, and will face competition from other bidders in the open market.


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