Fillmore Spencer works with Utah Valley commercial real estate investors, owners, builders and developers to resolve issues in the financing and development of shopping centers, industrial projects, office buildings, warehouses, mixed-use developments, apartment developments and residential subdivisions. We provide comprehensive commercial real estate legal services, from the purchase of land and negotiations for interim and permanent financing on through to the development and leasing of property.
Commercial real property is often owned by multiple parties. Disagreements can arise over how to use or manage the property, whether to sell or develop the property or the parties’ respective degrees of ownership of the property. If these disputes cannot be resolved, Utah law provides that an action for partition of real property may be brought to divide the property among the owners.
If you have ownership rights in commercial real property, the best way to protect those rights is to retain legal counsel at Fillmore Spencer. Our real estate attorneys file a lis pendens with the county recorder in the county where the property is located and ensure that all parties holding a recorded interest in or lien on the property are advised of the action’s filing. There are two kinds of partition:
Partition in kind is easiest to effect when the real property in question is undeveloped. In cases where the property is developed, partition by sale is a resolution favored by Utah courts.
In certain situations, it may be possible to defer a partition action for a “reasonable duration.” For instance, a co-tenant may have agreed in writing not to partition, or may have obtained title through an instrument that included a non-partition agreement. In this case, the co-tenants’ subsequent decision to request an action for partition might be successfully delayed, but not indefinitely. Utah courts generally do not like to not enforce an agreement that restricts the right to partition for an unreasonable amount of time.
Of course, co-tenants may agree to partition their ownership rights and divide the property. A partition will generally be enforced unless it adversely affects the rights of another person. And if all owners don’t agree to the partition, a lawsuit may be filed. A compulsory (court-ordered) partition will consider legal principles such as statutory limitations, laches (charging undue delay) and public policy.
Commercial real estate protects can pay off handsomely because of the risk they assume. To limit your risks, go with an experienced commercial real estate attorney who can ensure all your legal needs are met and your rights protected and defended. Call Fillmore Spencer LLC at (801) 921-6562 or contact us online to see how we can help your commercial real estate endeavor successfully navigate Utah’s ever-competitive business and ever-complex legal environments.