Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.
Detailed Answer
When heirs inherit property together in Arizona, they become co-owners with undivided interests. Each co-owner has the right to occupy and use the entire property, but no single heir can exclude another. If one heir wishes to live in the inherited property while another wants to sell, Arizona law provides a mechanism called a partition action.
Partition Actions under Arizona Law
Under Arizona Revised Statutes §12-1201 (ARS 12-1201), any co-owner may file a partition action in the superior court of the county where the property is located. The court can divide the property “in kind” if it is readily divisible (for example, two adjacent lots) or order a sale if division is impractical. After sale, the proceeds get distributed according to each heir’s ownership share.
Occupant’s Rights and Obligations
The heir living in the property retains possession until the court orders otherwise. However, the court may require that heir to pay fair rental value to the non-occupying co-owner. Arizona Revised Statutes §12-1207 (ARS 12-1207) permits the court to credit those rent payments against the occupant’s share of the net sale proceeds.
Non-Occupant’s Rights
The heir who does not reside in the property can demand partition at any time. They can petition the court for sale and distribution of proceeds. The non-occupant co-owner may also seek a buyout: they pay the occupant fair market value for that heir’s share and take full ownership.
How to File a Partition Action
- File a complaint for partition in the superior court in the property’s county.
- Serve all co-owners with notice of the action.
- Obtain court-ordered appraisal or survey if needed.
- Attend hearings where the court will decide division in kind or order sale.
- Follow court orders regarding sale and distribution of proceeds.
Helpful Hints
- Discuss a buyout or private sale with your co-owner before going to court.
- Obtain a current professional appraisal to establish fair market value.
- Keep detailed records of any expenses or improvements you make to the property.
- Consider mediation to avoid court costs and delays.
- Review potential tax consequences of a sale or buyout with a tax advisor.