The California partition law 2026 reforms, enacted through the Partition of Real Property Act (AB 2038), introduce significant procedural changes for all partition actions filed on or after January 1, 2026. These requirements apply to both residential and commercial properties.

Key requirements under the new law include:

• Mandatory Appraisals: Before a partition action can proceed, a court-approved, independent appraisal must be conducted to establish the property’s fair market value. The only exception is if all co-owners unanimously agree to waive this requirement.
• Expanded Buyout Rights: Co-owners now have a statutory right to purchase the interests of other co-owners at the appraised fair market value. This mechanism is designed to prevent predatory forced sales and allow individuals to retain property ownership.
• Right of First Refusal (ROFR): Once an appraisal is finalized, co-owners typically have a 30 to 90-day window to exercise their right of first refusal and submit a formal buyout notice.
• Mandatory Mediation Timelines: Parties must attempt to resolve disputes through mediation before the court will consider motions for a sale or appraisal. This mediation must generally be completed within 90 days of filing the partition action.
• Strict Procedural Compliance: The reforms mandate formal notice to all co-owners and adherence to specific statutory deadlines to ensure transparency and equitable division of equity.

• California Partition Law 2026 Reforms: Key Buyout Rights Explained