10 July 2026
Court Receiverships
What Is a Partition Referee? A partition referee is a neutral, court-appointed officer responsible for carrying out a court-ordered division or sale of jointly owned real property in California. When two or more people own real property together and cannot agree on what to do with it, California law provides a remedy: the partition action. Partition is the statutory mechanism by which a co-owner may compel the division or sale of jointly held property and obtain his or her share of the value. Once the court determines that a party is entitled to partition, the day-to-day work of dividing or selling the property is carried out not by the judge, but by the partition referee. FedReceiver, Inc. and Stephen Donell have handled over 100 partition matters in California and are experts in partitions.
The partition statutes are found in Title 10.5 of Part 2 of the California Code of Civil Procedure, beginning at section 872.010 and ending at section 874.323. This article summarizes the statutes that govern when a referee is appointed, who may serve, and what a referee is empowered to do. It is intended as a general overview for co-owners, counsel, and other professionals researching how a California partition referee is appointed and what the role involves.
The modern partition statutes were enacted in 1976 through Assembly Bill 1671, on the recommendation of the California Law Revision Commission, replacing partition laws that dated back more than a century. The scheme establishes an orderly, court-supervised process that moves through several distinct stages, with the referee at the center of the division or sale phase.
At a high level, a California partition action proceeds in four principal steps:
| Step | Stage | What Happens / Governing Statute |
| 1 | File the partition action | A co-owner commences the action. CCP § 872.210 identifies who is authorized to sue. |
| 2 | Obtain the interlocutory judgment | The court determines the right to partition and each party’s interest, and orders the manner of partition. CCP § 872.720. |
| 3 | Appoint the referee | The court appoints a referee to carry out the division or sale. CCP § 873.010. |
| 4 | Divide or sell and distribute | The referee divides the property in kind or sells it, reports to the court, and the net proceeds are distributed. CCP §§ 873.210 et seq., 873.510 et seq., 873.810 et seq. |
A partition action may be commenced by any co-owner of real property, with a notable exception for spouses. Under CCP § 872.210, an action may be maintained by “an owner of an estate of inheritance, an estate for life, or an estate for years in real property where such property or estate therein is owned by several persons concurrently or in successive estates.” Subdivision (b) provides that an action “between spouses or putative spouses for partition of their community or quasi-community property” may not be maintained under the partition title — those disputes belong in family court.
Family disputes can be very contentious. In many instances, we have handled disputes where children who inherit property end up fighting with one another. Often, one sibling is living in a house, not paying rent, and the other siblings become upset and litigation results. Dealing with family members who make decisions based on emotion as opposed to the law, contract, or rational thought results in higher costs and more complicated outcomes. This may include seeking to surcharge the bad actor who is causing the estate to incur higher costs.
Before any referee is appointed, the court must first determine that the plaintiff has the right to partition and establish the parties’ interests. Under CCP § 872.720(a), if the court finds that the plaintiff is entitled to partition, “it shall make an interlocutory judgment that determines the interests of the parties in the property and orders the partition of the property and, unless it is to be later determined, the manner of partition.” This interlocutory judgment is the gateway: it establishes ownership percentages and directs whether the property is to be divided physically or sold.
Once partition is ordered, the appointment of a referee is not discretionary. CCP § 873.010(a) provides:
Code of Civil Procedure § 873.010(a)
“The court shall appoint a referee to divide or sell the property as ordered by the court.”
The word “shall” makes the appointment mandatory once the court has ordered partition. In addition to appointing the referee, subdivision (b) authorizes the court to determine whether a referee’s bond is necessary and fix its amount, instruct the referee, fix the referee’s reasonable compensation and provide for payment of expenses, provide for commencement of the referee’s lien, require interim or final accounts and settle them, discharge the referee, remove the referee, and appoint a new referee. These powers give the court continuing supervisory authority over the referee throughout the case.
The default and overwhelmingly common practice is to appoint a single referee. Section 873.040(a) provides that the court “shall appoint as referee a suitable person not a party to the action.” By agreement, the parties may consent to a referee of their choosing, and the statute permits appointment of one or three referees. As a practical matter, a single, neutral referee handles nearly all partition-by-sale matters.
The qualifications of the referee are then reviewed by the judge. Stephen Donell has decades of experience as a real estate professional, including holding a California broker’s license and numerous professional designations in real estate. He is also President of Jalmar Properties, Inc., a full-service property management firm. Donell and Jalmar have managed over 1,500 single family homes, as an example.
The referee must be a neutral third party. CCP § 873.050 identifies persons who are ineligible to be appointed, ensuring that the referee has no conflicting interest in the outcome. The referee is an officer of the court, owing duties of impartiality to all co-owners rather than advocating for any one of them — a role closely analogous to that of a court-appointed receiver.
To assist in carrying out the sale or division, the referee is expressly authorized to retain qualified professionals. Under Article 2 of Chapter 4, the referee may, with court authorization, employ the services of third persons (§ 873.110), retain an attorney (§ 873.120), a surveyor (§ 873.130), and an auctioneer (§ 873.140). In a typical partition by sale, the referee will engage a licensed real estate broker to market and sell the property. Mr. Donell will identify a qualified realtor/broker in the sub-market and will manage the marketing and listing process, which may include staging residential properties.
The referee’s core grant of authority is broad. CCP § 873.060 provides:
Code of Civil Procedure § 873.060
“The referee may perform any acts necessary to exercise the authority conferred by this title or by order of the court.”
This provision empowers the referee to take the practical steps required to accomplish the partition ordered by the court. Because the referee acts under the court’s continuing supervision, the statutes also build in a mechanism to resolve uncertainty. Under CCP § 873.070, “the referee or any party may, on noticed motion, petition the court for instructions concerning the referee’s duties under this title.” When a question arises about the scope of the referee’s authority or the proper course of action, the referee may seek instructions to obtain additional powers and authority; however, Mr. Donell typically attempts to meet & confer with all parties/counsel prior to doing so.
California recognizes three methods of partition: partition in kind (physical division), partition by sale, and partition by appraisal (a buyout). Physical division is the historically preferred method where feasible, and CCP § 873.210 addresses division of the property by the referee. In practice, most real property — particularly a single residence or a small parcel — cannot be physically divided in a way that matches the owners’ interests, so partition by sale is by far the most common outcome.
Stephen Donell was appointed as a partition referee to engage in a partition in kind in a complex matter in Laguna Beach, California. This case involved three siblings who inherited a mixed-use residential/commercial property and raw land. Ultimately, Mr. Donell obtained an order from the court to partition in kind, including calculation of owelty, which is a very cumbersome process.
Where the court orders a sale, Chapter 6 governs how the referee carries it out. CCP § 873.510 provides that the property “shall be sold in the manner prescribed in this chapter,” and § 873.520 directs the referee to determine, and report to the court, whether the property should be sold at public auction or by private sale. The referee may recommend the manner, terms, and conditions of sale under § 873.610, subject to the court’s approval. Notice of sale must be given in the manner required for notice of sale of like property upon execution (§ 873.640).
Critically, a partition sale is not final when the referee accepts an offer. After the sale, the referee must file a report with the court (CCP § 873.710), and the sale must be confirmed by the court before it closes. Under § 873.720 and the sections that follow, the court holds a confirmation hearing at which it may confirm the sale, vacate it, or accept an increased offer from a responsible bidder. This judicial confirmation is a central safeguard designed to protect the co-owners and ensure the property is sold for a fair price. In some cases, parties may seek to impose the right of first refusal provision in the order appointing referee. This typically chills property values.
After the sale is confirmed and closed, the referee distributes the proceeds under the court’s direction. CCP § 873.810 authorizes the court to order the disbursement of the sale proceeds, and § 873.820 sets the order of application — generally, the expenses of sale and the costs of partition are paid first, followed by liens and other charges, with the balance distributed to the parties in proportion to their respective interests.
The costs of partition, addressed in Chapter 8 (§§ 874.010 et seq.), are ordinarily apportioned among the parties in proportion to their interests, subject to the court’s equitable adjustment under §§ 874.040 and 874.050. Mr. Donell routinely seeks offsets and a surcharge against certain owners that cause undue cost to the referee estate. This includes the cost of ejectment or removal from properties, including the filing of frivolous Arrieta claims.
An “Arrieta claim,” legally known as a Claim of Right to Possession under California Code of Civil Procedure Section 1174.3, protects unnamed adult occupants from being forcibly locked out of a rental property during an eviction. It requires the Sheriff or Marshal to immediately stop the eviction until a court determines if the occupant has a valid right to remain. FedReceiver and Mr. Donell’s team have vast experience in defeating such claims.
Effective January 1, 2022, California adopted the Partition of Real Property Act (“PRPA”), codified at CCP §§ 874.311 through 874.321.5. The PRPA replaced and expanded the earlier Uniform Partition of Heirs Property Act and now applies broadly to property held by tenants in common, subject to limited exceptions. The Act overlays additional procedures on the traditional framework described above.
Among the PRPA’s key features: the court determines the property’s fair market value by ordering an appraisal by a disinterested, licensed appraiser (§ 874.316), unless the parties agree on another method of valuation; co-owners who did not request partition are given the opportunity to buy out the interest of the co-owner who did, at the appraised value, before any sale; and, if a sale proceeds, the Act expresses a strong preference for an open-market sale through a licensed real estate broker over a courthouse-steps auction, to preserve value (§§ 874.319, 874.320). A sale by sealed bids or auction is permitted only where the court finds it would be more economically advantageous and in the best interest of the cotenants as a group.
The referee’s role continues under the PRPA. Section 874.315 addresses the appointment of a referee within the PRPA framework, and the referee remains the court’s neutral officer for conducting the open-market sale and reporting back for confirmation.
A partition referee and a court-appointed receiver share important characteristics: both are neutral, both are appointed by court order, and both owe their duties to the court and to the estate rather than to any single party. The referee must exercise reasonable care to ensure that the actions taken — the manner of division, the marketing of the property, the recommendation on sale terms, and the distribution of proceeds — are in the best interest of the co-owners as a group and consistent with the court’s orders.
For co-owners locked in a dispute they cannot resolve, the referee provides a professional, disinterested mechanism to convert a shared, illiquid asset into distributable value under judicial supervision. For the court, an experienced referee reduces the burden of administering the sale and provides reliable reporting at each stage. For counsel, a qualified referee ensures the process is conducted in a commercially reasonable, statutorily compliant manner that will withstand a confirmation hearing. Mr. Donell often acts like a mediator, seeking to bring order to chaos and work with all parties in a manner that upholds respect and dignity, especially when emotions run high.
What is a partition referee?
A partition referee is a neutral, court-appointed officer responsible for dividing or selling jointly owned real property once a court has ordered partition under California Code of Civil Procedure § 873.010. The referee acts as an officer of the court rather than an advocate for any party.
Who pays for a partition action in California?
The costs of partition, including the expenses of sale and the referee’s compensation, are paid first out of the sale proceeds under CCP § 873.820, with the balance distributed to the parties in proportion to their interests. Courts may also make equitable adjustments to how costs are apportioned under CCP §§ 874.040 and 874.050, including surcharges against a co-owner whose conduct increases costs to the estate.
How is a partition referee appointed in California?
Once a court determines a party is entitled to partition and enters an interlocutory judgment under CCP § 872.720, the appointment of a referee is mandatory under CCP § 873.010(a). The default is a single, neutral referee who is not a party to the action, though the statute permits appointment of up to three referees by agreement.
What is the Partition of Real Property Act (PRPA)?
The PRPA is a California law effective January 1, 2022 (CCP §§ 874.311–874.321.5) that adds procedures to traditional partition actions for property held by tenants in common, including a court-ordered appraisal, a buyout opportunity for co-owners who did not seek partition, and a preference for open-market sales over courthouse-steps auctions.
What is an Arrieta claim / Claim of Right to Possession?
An Arrieta claim, legally known as a Claim of Right to Possession under California Code of Civil Procedure Section 1174.3, allows an unnamed adult occupant to temporarily halt an eviction until a court determines whether they have a valid right to remain in the property.
| Code of Civil Procedure | Subject |
| § 872.010 | Definitions; scope of the partition title |
| § 872.210 | Who may commence a partition action (spousal exception) |
| § 872.720 | Interlocutory judgment; determination of interests and manner of partition |
| § 873.010 | Mandatory appointment of the referee; court’s powers over the referee |
| §§ 873.020–873.040 | Number of referees; consent; suitable non-party |
| § 873.050 | Persons ineligible to serve as referee |
| § 873.060 | General authority of the referee |
| § 873.070 | Petition to the court for instructions |
| §§ 873.110–873.140 | Referee’s retention of attorney, surveyor, auctioneer, and other services |
| § 873.210 et seq. | Division of the property in kind by the referee |
| §§ 873.510–873.690 | Manner and conduct of sale (public auction / private sale) |
| §§ 873.710–873.790 | Report of sale; court confirmation; conveyance |
| §§ 873.810–873.840 | Disbursement and application of sale proceeds |
| §§ 874.010–874.140 | Costs of partition; apportionment |
| §§ 874.311–874.321.5 | Partition of Real Property Act (appraisal, buyout, open-market sale) |
About FedReceiver, Inc. FedReceiver, Inc. and its principal, Stephen Donell, serve as court-appointed partition referees and receivers throughout California, including Los Angeles, Orange County, San Diego, San Francisco, Sacramento, Riverside, and San Bernardino County. Mr. Donell is a California-licensed real estate broker who has served in both partition-by-sale and the rarely used partition-in-kind capacity, bringing decades of property management and asset-disposition experience to the referee role.
Disclaimer. This article is provided for general informational purposes only and does not constitute legal advice, nor does it create any attorney-client or professional-client relationship. Statutory references are to the California Code of Civil Procedure and were current as of the date of publication; statutes are subject to amendment. Readers should consult qualified counsel regarding any specific partition matter.
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