Detailed Answer
Not legal advice: This article provides general information and does not constitute legal advice. For advice specific to your situation, consult a qualified attorney.
When co-owners cannot agree on a buyout price for jointly owned property, Colorado law offers several paths to resolve the dispute:
- Negotiation and Mediation: Co-owners can hire a neutral mediator to facilitate discussions and reach a voluntary agreement on a buyout price.
- Independent Appraisal: Each party selects a licensed appraiser to value the property, then calculates an average of the valuations as the buyout price.
- Binding Buy-Sell Agreement: Some co-owners draft buy-sell agreements in advance, specifying a formula or process for valuation and sale.
- Court-Ordered Partition: If informal methods fail, a co-owner may file a partition action under C.R.S. § 38-41-101 et seq.. The court can order:
- Partition in Kind: Physical division of the property when feasible.
- Partition by Sale: Court orders a public auction or sale with proceeds divided according to ownership interests.
In a partition action, the court may appoint commissioners to appraise and divide or sell the property. Parties may object to the commissioners’ report and request a hearing before a judge. The process ensures a fair resolution when co-owners reach an impasse.
Helpful Hints
- Document any informal offers or appraisals to support your position if the matter goes to court.
- Review or create a written buy-sell agreement when co-owning property to avoid future disputes.
- Consider the costs and time involved in court-ordered partition versus negotiation or mediation.
- Consult a real estate attorney to guide you through the partition process and protect your interests.
- Be prepared for potential tax implications of selling property or transferring interests.