Arizona: Forcing a Sale of Co-Owned Property — What to Know and Next Steps

Detailed answer — What Arizona law lets you do and how the process works

If two or more people own real property together and they cannot agree about what to do with it, Arizona law provides a legal process called a partition action that lets the court divide the property or force its sale so each co-owner can receive their share. The partition statutes are located in Arizona Revised Statutes, Title 12 (civil procedure), commonly referenced as A.R.S. §§ 12-1101 et seq.; see the statutes here: Arizona Revised Statutes, Title 12.

Key points about partition actions under Arizona law:

• Who can file: Any co-owner of the property (joint tenants, tenants in common, or other co-owners) may file a complaint for partition in the superior court for the county where the property is located.
• Types of partition: The court can order a partition in kind (physically dividing the property into separate portions) or a partition by sale (selling the property and dividing the proceeds). The court prefers division in kind when it is practical and fair, but if division in kind would be impractical, would prejudice the owners, or impair value, the court can order a sale.
• How the court decides: The court looks at factors such as whether the property can be divided without materially decreasing its value, the relative sizes of owners’ interests, and whether division would be equitable. If the court orders sale, it will typically appoint officers (often called commissioners) to value the property, manage the sale, and report to the court.
• Sale process and distribution: If the court orders a sale, it will set procedures for a public auction or private sale. Sale costs, outstanding liens and mortgages, property taxes, and allowable expenses are paid from the sale proceeds first; the net proceeds are then divided among co-owners according to their legal ownership shares (unless the court finds a different equitable division is required).
• Offsets and credits: Co-owners who have paid more than their share of mortgage payments, taxes, or necessary improvements can ask the court to adjust distributions so the paying co-owner receives credit. The court can award contributions, reimbursements, or adjust shares to account for unequal payments and improvements.
• Alternatives to court: Parties can avoid litigation by negotiating a buyout (one owner purchases the others’ interests), agreeing to put the property on the open market and split proceeds, or using mediation to reach a voluntary solution. A buyout or voluntary sale is usually faster and less expensive than a court action.
• Typical timeline & costs: A partition action in Arizona commonly takes several months to over a year depending on complexity, title issues, and appeals. Expect court filing fees, possible commissioner or referee fees, sale costs, and attorney fees. In some cases the court may award attorney fees to a prevailing party if statutes or contract provide for it.
• Practical considerations: Mortgages and liens remain attached to the property. If the property has an encumbrance, the lender’s rights must be dealt with; often the mortgage must be paid from sale proceeds before owner distributions.
• Where to file and legal procedure: File a civil complaint for partition in the superior court in the county where the property sits. The complaint must name all co-owners and any lienholders so they can be served and have a chance to participate. Court rules govern pleadings, service, hearings, appointment of commissioners, and sale procedures.

Because process details and local court practices vary, and because factual differences (ownership form, mortgages, improvements, tax issues) materially affect outcomes, consult an Arizona real property attorney to evaluate your case and explain likely results. Use an attorney if you face complex title issues, liens, or substantial disputes about contributions or ownership percentages.

Helpful statutory reference: Partition law is set out in A.R.S. Title 12, chapter covering partition actions (see A.R.S. §§ 12-1101 et seq.): https://www.azleg.gov/arsDetail/?title=12. Your attorney can point to the specific sections that apply to courts ordering partition in kind vs. partition by sale, appointment of commissioners, and distribution rules.

Important: This information describes general Arizona law and typical procedures but does not substitute for legal advice tailored to your facts.

Helpful hints — Practical steps to take right now

• Start by gathering documents: deed(s), title report, mortgage and payoff statements, property tax bills, insurance policies, escrow statements, and records of payments or improvements.
• Try negotiation first: propose a buyout price based on a current market valuation or obtain a joint appraisal to create a neutral starting point.
• Consider mediation: a neutral mediator can help preserve value by reaching a voluntary sale or buyout and avoid court costs and delay.
• Get a professional appraisal: an appraiser’s report supports fair valuation and helps the court or parties decide whether partition in kind is practical.
• Understand contributions: keep records of mortgage, tax, utility payments, and improvements. Courts can credit unequal contributions when dividing proceeds.
• Check liens and mortgages: find out whether the property has loans or judgments. Liens typically get paid at sale, affecting net proceeds.
• Avoid unilateral acts that harm the property: do not lock out co-owners, remove fixtures without agreement, or let the property fall into disrepair—the court may view this negatively.
• Be prepared for costs and timing: budget for attorney fees, court costs, and sale expenses; consider whether buying out co-owners is cheaper in the long run.
• Ask for an attorney consultation: a brief consult with an Arizona real estate attorney will clarify options, likely outcomes, and estimated costs specific to your situation.
• Consult a tax professional: sale or buyout can create capital gains, depreciation recapture, or other tax consequences—get tax advice before closing.

Bottom line: Arizona law allows a co-owner to ask a court to partition property when co-owners cannot agree. Courts may divide the property or order a sale and distribute proceeds after paying liens and costs. Because the process affects finances, title, and taxes, you should collect documents, consider negotiation or mediation first, and consult an Arizona real property attorney and a tax advisor for personalized guidance.

Disclaimer: This article is for general informational purposes only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Arizona attorney.