What Happens When One Owner Refuses To Sell a Jointly Owned Property?

Buying property with another person can be a smart move. Sharing ownership can make it easier to afford the property, manage expenses, and maintain it. Some people purchase real estate with a friend or sibling, while others become co-owners through inheritance. However, circumstances change, and one owner may want to sell and move on, while the other owner may want to keep the property. When that disagreement happens, it can leave everyone feeling stuck, especially since most real estate sales require all owners listed in the title to agree on the sale. So what happens if one co-owner refuses to sell?

Partition Actions as a legal way to end joint ownership

When co-owners cannot agree on what to do with a property, one option is to file a partition action. A partition action in Florida is a civil lawsuit where one owner asks the court to end the joint ownership agreement. Once filed, the court reviews the ownership records and the circumstances surrounding the property. The judge then determines the most appropriate way to end the joint ownership arrangement.

You can expect several outcomes from a partition action. In some cases, the court may order one owner to buy out the other owner’s share. So the owner who wants to keep the property does that while compensating the other for their ownership interest. In other situations, the court may order the sale of the property and divide the proceeds among the co-owners based on their ownership shares. Another possible outcome is division of the property, for instance, if the case involves parcels of land.

The Partition Process

Partition cases usually follow several key steps, as discussed below.

Attempt To Reach an Agreement

Through an experienced real estate litigation attorney, you may try to reach an agreement through negotiations. Before filing a lawsuit, it may be possible to resolve the dispute by either agreeing to sell the property together or arranging a buyout between the owners. Instead of leaving the court to decide whether the sale will be through a court-ordered auction, which may not achieve a fair market value of the property, a private sale may fetch a higher price.

Filing a Lawsuit

If negotiations fail, a partition lawsuit is filed. One owner asks the court to determine each owner’s rights and how the property should be divided or sold.

Accounting for Financial Contributions

The court then evaluates financial contributions. Here, a judge may consider factors such as who paid for the mortgage, property taxes, insurance costs, maintenance, or improvements.

Court-Ordered Sale

If the property cannot be physically divided, the court will likely order a sale. A neutral third party is typically appointed to oversee the sale, and the process may involve an appraisal by a professional. The property is then listed on the open market, and offers are reviewed and finally accepted.

Distribution of Proceeds

Existing mortgages or liens are paid off, and any legal fees associated with the partition action are paid. The remaining proceeds are then distributed according to ownership interests. If one owner covered more expenses than the other, they may receive reimbursement from the sale proceeds.

Stuck in a Property Dispute With a Co-Owner?

If you are unable to agree on selling or dividing a jointly owned property in Florida, contact our Davie real estate litigation lawyers at Valero Law today by calling 305-607-7011 to explore your legal options. We serve clients in Davie, Broward County, Coconut Grove, and Miami-Dade County.