What happens when co-owners disagree about selling a house in Arkansas?
This FAQ-style guide explains how a co-owner can force the sale of real property under Arkansas law, what the court can do, practical steps to take, and what to prepare before you talk to an attorney. This is general information and not legal advice.
Detailed Answer — Forcing a sale of co-owned real estate in Arkansas
When two or more people own a house together and they cannot agree whether to keep or sell it, Arkansas law gives an owner the right to ask a court to divide or sell the property through a partition action. Partition is the usual legal remedy when co-owners (for example, tenants in common or joint tenants) cannot agree.
What is a partition action?
A partition action is a lawsuit filed in the circuit court in the county where the property is located. The court can either:
- Partition in kind — physically divide the property so each owner receives a separate portion appropriate to their ownership share, or
- Partition by sale — order the property sold and divide the sale proceeds among the owners according to their legal interests.
If dividing the land is impractical or would damage its value (as is usually true for a single-family house on one lot), the court will typically order a sale and distribute the proceeds. Arkansas law governs the court’s power to partition and the procedures courts follow; these rules are found in the Arkansas Code covering partition.
See Arkansas statutes on partition for reference: Arkansas Code — General site (search Title 18, Chapter 60 for partition statutes).
How the process generally works
- File a complaint for partition: A co-owner (the plaintiff) files a petition or complaint in circuit court asking the court to partition the property. The complaint names the other co-owners as defendants.
- Service and response: Defendants are served and can respond. The court will resolve any preliminary disputes about ownership, boundaries, liens, or outstanding mortgages.
- Determination of interests and liens: The court determines each party’s ownership interest (percentage) and addresses liens, mortgages, taxes, or judgments that encumber the property. Liens are typically satisfied from sale proceeds in order of priority.
- Appraisal and sale procedures: If the court orders sale, it usually appoints a commissioner or a sheriff to advertise, appraise, and conduct a public sale. The court will direct how proceeds are held and distributed after paying costs, liens, and fees.
- Distribution of proceeds: After sale and satisfaction of encumbrances and costs, the remaining proceeds are divided among the co-owners according to their ownership shares and any court-ordered adjustments (for unequal contributions, improvements, or waste).
What if one co-owner wants to buy out the others?
A co-owner can offer to buy the other owners’ shares. That often avoids litigation. If the other owners accept, you can complete a private sale or transfer. If they refuse, a partition action may still produce a court-ordered sale, and sometimes the court allows co-owners to bid at the sale so a co-owner can keep the property by outbidding others.
How mortgages and liens affect a partition or sale
If there’s a mortgage or other lien on the property, the lien remains attached. Proceeds from a forced sale normally pay mortgage holders and lienholders first (in order of legal priority); any remainder is distributed to the owners. A partition suit will identify and resolve those priorities before distributing money.
Costs, timeline, and outcomes
- Costs: Court filing fees, appraisal fees, publication and advertising costs, commissioner or sheriff fees, and attorneys’ fees (if awarded). These costs come out of sale proceeds.
- Timeline: A straightforward partition can take several months; contested matters (disputes about title, liens, or valuation) can take much longer.
- Possible outcomes: buyout, negotiated sale, court-ordered sale, or (rarely) physical division of land. Courts try to reach an equitable result based on the facts.
Practical decisions a court may make
The court can adjust how proceeds are split to compensate owners who paid more for the property, made improvements, paid mortgage payments, or otherwise contributed disproportionately. The court evaluates equitable claims and contributions and distributes proceeds fairly.
Where to file and what law applies
Partition actions are filed in the circuit court where the property is located. Arkansas statutes on partition and civil procedure control the process; courts follow state law for notices, service, and sale procedures. For the statutory framework, search Arkansas Code Title 18 (Property), Chapter 60 (Partition) on the Arkansas General Assembly website: https://www.arkleg.state.ar.us/.
When to get an attorney
If co-owners cannot reach an agreement, or if title, liens, contribution claims, or complex family or business arrangements create disputes, consult a real estate or civil litigation attorney who handles partition cases. An attorney can evaluate your position, negotiate a buyout or sale, file the partition complaint, and protect your rights in court.
Important: This guide is informational only and does not constitute legal advice. Laws change, and every situation has unique facts. Consult a licensed Arkansas attorney before taking legal action.
Helpful Hints — Practical steps if you’re considering forcing a sale
- Confirm how title is held (tenants in common, joint tenants, trust, or LLC). Ownership type affects rights and procedures.
- Gather documents: deed(s), mortgage statements, tax bills, insurance, receipts for improvements, and any written agreements among owners.
- Try negotiation or mediation first — courts often encourage settlement and it saves time and cost.
- If you file suit, be prepared to show proof of ownership and any claims for reimbursements (mortgage payments, repairs, taxes).
- Expect lien and mortgage priorities to be resolved before distribution—contact lenders if you plan to buy out a share.
- Get an appraisal early. A current market value helps pending negotiation or court valuation.
- Consider tax consequences: a sale may have capital gains tax implications. Consult a tax advisor.
- Ask potential attorneys about experience with partition litigation, typical timelines, likely costs, and how they handle sales vs. buyouts.
For statutory reference, search Arkansas Code Title 18 (Property) — Chapter 60 (Partition) on the Arkansas General Assembly site: https://www.arkleg.state.ar.us/.