Short answer

Yes. In Delaware you can generally negotiate a buyout with a co-owner to avoid a partition lawsuit. Voluntary buyouts are common, often faster and less expensive than court action. However, if you cannot reach agreement, either co-owner may still file a partition action in court. Because property, title, tax, and contract issues can be complex, consider getting legal and tax advice before finalizing a buyout.

Detailed answer — how buyouts work and what to watch for under Delaware law

Co-owners of real property in Delaware (tenants in common or joint tenants) may resolve disputes by private agreement. A negotiated buyout means one owner pays the other for that owner’s interest and the seller transfers their share by deed. This process avoids court-ordered partition, which can result in a forced sale or division of the land.

Why a negotiated buyout is often preferable

• Speed: Negotiation and a private closing usually finish far sooner than litigation.
• Cost: You avoid court fees, attorney time spent on contested litigation, and possible sale costs.
• Control: Parties set price and terms rather than leaving the outcome to a judge or sale process.
• Privacy: Transactions stay private; partition proceedings are public court records.

When Delaware courts get involved

If co-owners cannot agree, either owner can file a partition action in the Superior Court or Court of Chancery depending on the nature of the claim. A court may order physical division when feasible or a sale and division of proceeds. If you want to avoid that, you must reach a binding agreement first.

For the Delaware Code and court information, see the Delaware Code website (delcode.delaware.gov) and the Delaware Courts site (https://courts.delaware.gov/).

Key steps to negotiate and document a buyout

1. Confirm ownership and share percentages. Review the deed and any agreements to verify each person’s ownership interest.
2. Get a current market value. Hire a licensed Delaware real estate appraiser or agree on a recent comparable-sales analysis to set a fair price. Consider getting two appraisals if parties disagree.
3. Agree on a buyout price and terms. Decide whether payment is lump sum, installments, or financed through a mortgage or seller financing. Put terms in writing.
4. Address liens, mortgages, and obligations. Identify encumbrances on the property and decide who will pay them off or how they will be handled at closing.
5. Prepare legal documents. Typical documents include a purchase agreement (or quitclaim/warranty deed terms), payoff instructions for any mortgages, a closing statement, and any releases of claims.
6. Use escrow and a title company or attorney at closing. A Delaware-licensed title company or attorney can handle the closing, confirm payoffs, obtain a title search, and record the new deed with the county recorder of deeds.
7. Record the deed. Record the deed promptly so the buyer’s sole ownership is reflected in public records.
8. Consider tax and estate impacts. A buyout can create capital gains, impact basis, or affect estate planning. Consult a tax advisor.

Common negotiation provisions to include

• Exact sale price and method of payment.
• Closing date and responsibilities for prorations (taxes, utilities, condo fees).
• Who pays closing costs, transfer taxes, and recording fees.
• Representations and warranties about title and authority to sell.
• Indemnities or escrow holdbacks for undisclosed issues.
• Release language to prevent future claims by the selling co-owner.

If negotiations stall: alternatives before filing for partition

• Mediation — neutral mediator helps owners find middle ground.
• Arbitration — binding decision if parties agree in advance.
• Buying out via refinancing — the staying owner refinances in their own name to buy out the other owner.

Risks of a buyout

• Agreeing to a price that turns out to be too low or too high without adequate valuation.
• Incomplete paperwork leading to title disputes later.
• Tax consequences for the selling owner (capital gains) and for the buyer (basis adjustments).
• If the buyer cannot close (financing falls through), the seller may be back to square one.

When to talk to a Delaware attorney

Consult an attorney if the ownership interests are unclear, if a deed or mortgage must be restructured, if significant tax consequences may arise, or if one party is uncooperative. An attorney can draft airtight sale agreements, handle closings, and advise on whether a buyout or partition better protects your interests.

For a general starting point on Delaware law and court procedures, visit the Delaware Code (https://delcode.delaware.gov/) and the Delaware Courts website (https://courts.delaware.gov/).

Helpful Hints

• Get a written appraisal rather than relying on informal estimates.
• Put every term in a written purchase agreement before delivering any funds.
• Use escrow to hold funds until title search, payoffs, and deed are ready.
• Check county recorder requirements for deed form and transfer tax in the county where the property sits.
• Consider mediation early — it is cheaper than litigation and often preserves relationships.
• Ask about title insurance for the buyer to protect against hidden claims.
• Talk to a tax advisor about potential capital gains and transfer tax consequences for both parties.
• Keep a clear record of communications and signed documents in case disputes arise later.