How do co-owners initiate a partition action to divide or sell shared real property in AR? | Arkansas Partition Actions | FastCounsel
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How do co-owners initiate a partition action to divide or sell shared real property in AR?

How co-owners start a partition action to divide or sell shared real property in Arkansas

Short answer: In Arkansas, any co-owner (cotenant) of real property can ask a circuit court to divide the property physically (partition in kind) or force its sale (partition by sale) when owners cannot agree. The co-owner begins the process by filing a partition complaint in the appropriate Arkansas circuit court, serving all known parties, and asking the court to appoint commissioners or order a sale and distribute proceeds among owners after resolving liens, credits, and deductions.

Detailed answer — what a partition action is and how it works in Arkansas

Partition is a judicial remedy that allows joint owners to obtain either a physical division of real property (partition in kind) or a sale of the property with proceeds divided among the owners (partition by sale). Arkansas law permits partition actions when co-owners cannot agree on use, possession, sale, or division of property.

Step-by-step: How co-owners initiate a partition action

  1. Confirm you are a proper party. Any owner with a present legal or equitable interest in the property may file. That includes joint tenants, tenants in common, and sometimes persons with recorded interests or liens that affect distribution.
  2. Gather documents and evidence. Collect the deed(s), title report or abstract, mortgage and lien records, property tax bills, leases, rent records, and documentation of contributions to purchase or improvements. These documents support ownership shares, credits, or offsets the court may order.
  3. Attempt resolution (recommended). Before filing, try negotiating a buyout, sale, partition in kind, or mediation. Courts and judges often prefer parties to settle without a contested action.
  4. Prepare and file a complaint for partition in the county’s circuit court.
    The complaint should generally: identify the property (legal description or parcel number), name all known co-owners and interested parties (mortgagees, lienholders, tenants), state each plaintiff’s claim of ownership or interest, and request the specific relief sought (partition in kind or partition by sale). Attach or describe title documents when possible.
  5. Serve all defendants and interested parties. Proper service on all co-owners, lienholders, and others with recorded interests is required. If some owners are unknown or cannot be found, the court may allow constructive or substituted service and will provide notice by publication if authorized.
  6. Court determines whether partition in kind is practical. The court first evaluates whether the property can be fairly and practically divided. If it can, the court may order a partition in kind and appoint commissioners (or a commissioner) to perform the division and report back. If division is impractical or would materially prejudice owners (for instance with a single-family home on one lot), the court may order sale and divide the proceeds.
  7. Appointment of commissioners, appraisal, and sale process. For partition in kind, the court uses commissioners to divide the property. For sale, the court typically orders appraisals, appoints a commissioner or receiver to conduct the sale, and approves the sale terms. The commissioner’s report and sale must comply with the court’s orders.
  8. Accounting, credits, and distribution. Before dividing proceeds or parcels, the court will account for mortgages, liens, taxes, costs of sale, necessary reimbursements (e.g., improvements paid by one cotenant), and rents due from occupying parties. The final division or distribution reflects these adjustments.
  9. Final decree and recordation. After the court approves division or sale and signs a final decree, the decree is recorded to clear title and reflect the new ownership or the distribution of sale proceeds.

Key legal and practical issues in Arkansas partition cases

  • Which relief the court prefers: Courts usually favor partition in kind when it is fair and practical. If physical division would substantially reduce the value or is impossible, the court will order a sale.
  • Priority of liens and mortgages: A mortgage or lien that is properly recorded generally attaches to the property and has priority. The court will typically pay lienholders from sale proceeds before distributing shares to owners.
  • Accounting for contributions and deductions: A co-owner who paid more than their share of mortgage, taxes, or necessary repairs may request credit. The court will consider equitable contributions and may adjust distributions accordingly.
  • Possession and rents: If one co-owner occupied the property and excluded others, the court may order an accounting of rents and profits and adjust shares accordingly.
  • Unknown or missing owners: The court can proceed with substituted service or notice by publication for absent or unknown parties if statutory requirements are met, but the court will require reasonable efforts to locate them first.
  • Costs and timing: Partition actions can take months to over a year depending on complexity, number of parties, appraisals, and sale scheduling. Filing fees, appraisal and commission fees, title work, and attorney fees (if awarded) will reduce net proceeds.

Where Arkansas law discusses partition

Arkansas statutory and court procedures that apply to partition actions and civil practice are available through the Arkansas Legislature and state court resources. For official text and related provisions, consult the Arkansas Code and circuit court rules at these official resources:

Note: The exact statutory section numbers and local rules that apply depend on the particular facts and the county where the property is located.

Helpful hints — practical steps before and during a partition action

  • Request a professional appraisal before filing. An appraisal gives parties a neutral auction-value baseline for buyouts or sale planning.
  • Obtain a title report to identify all owners, liens, and encumbrances. Accurate party naming avoids delay and extra notice costs.
  • Put your demands in writing (offer to buy out your co-owner, propose split options). Courts consider good-faith settlement efforts favorably.
  • Keep careful records of mortgage, tax, insurance, repair, and rent payments. The court may credit or debit owners based on these entries.
  • Consider mediation or negotiation. Many courts offer or require alternative dispute resolution before or during litigation.
  • Think about tax consequences. A forced sale or buyout can have capital gains implications; consult a tax professional.
  • Check local circuit court procedures for filing fees, required forms, service rules, and timing in the county where the property sits.
  • Evaluate cost versus value. If the property value is low, litigation costs may exceed the benefit—consider settlement options first.
  • Do not take self-help measures like locking out co-owners or unilaterally removing tenants. Such actions can lead to counterclaims and sanctions.

When to consult an attorney: If the title is complicated, there are multiple lienholders, unknown heirs, or disputed ownership shares, an attorney experienced in Arkansas real property litigation can prepare pleadings, handle service on missing parties, and represent your interests at sale or accounting phases.

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

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.