Detailed Answer
When co-owners cannot agree on sale logistics or cost sharing, Arkansas law provides several remedies. You can pursue a court-ordered partition, negotiate a buyout, or use alternative dispute resolution. Below is an overview of each option under Arkansas law.
1. Partition Action
Arkansas Code allows any co-owner of real property to ask the circuit court for a partition. Under Ark. Code Ann. § 18-60-201, the court evaluates whether the property can be divided physically (“partition in kind”). If division is impracticable or inequitable, the court orders a public sale and distributes net proceeds based on each co-owner’s share.
2. Cost and Expense Allocation
If one co-owner advances funds for taxes, maintenance, or improvements, the court can adjust the distribution of sales proceeds. Under Ark. Code Ann. § 18-60-203, the advancing party may recover those costs plus interest before dividing the remaining proceeds according to ownership percentages.
3. Buyout Negotiation
Instead of a sale, co-owners can negotiate a buyout. One co-owner purchases the other’s share at a mutually agreed price. This private agreement avoids court fees and public sale delays.
4. Alternative Dispute Resolution
Mediation or arbitration can help co-owners reach consensus on sale logistics and cost sharing. A neutral mediator facilitates discussions; an arbitrator issues a binding decision if mediation fails. ADR can be faster and less costly than litigation.
Helpful Hints
- Review any written co-ownership or tenancy-in-common agreement for built-in dispute resolution clauses.
- Document all expenses you pay on behalf of the property, including receipts and bank records.
- Explore a private buyout before filing a partition action to preserve relationships and reduce legal costs.
- Consider mediation early to narrow issues and potentially avoid court intervention.
- Consult a local real estate attorney to understand court procedures and filing requirements in your circuit.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. You should consult a qualified attorney to address your specific situation.