Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Consult a qualified attorney in Hawaii for advice on your specific situation.
Detailed Answer
Yes. Under Hawaii law, co-owners—including siblings who inherit real property together—may negotiate an out-of-court agreement to divide or sell their property instead of filing a partition action. The statutory right to partition arises from Hawaii Revised Statutes (HRS) § 501-2, which allows any co-owner to seek a court-ordered division or sale:
HRS § 501-2 (Right to partition).
However, HRS also recognizes voluntary agreements. Co-owners can negotiate terms—such as one sibling buying out others, physically dividing the land, or selling the property on agreed terms—and then record a covenant or submit the agreement to court for approval. This avoids litigation costs, delays, and the risk of a forced sale at auction.
Key steps in negotiation:
- Obtain a professional appraisal to establish fair market value.
- Discuss buy-out options: one sibling pays others their share, or siblings form an LLC or partnership to manage the property.
- Consider mediation. A neutral mediator can help siblings communicate and reach consensus.
- Draft a written agreement that addresses: division of proceeds, closing timeline, responsibilities for taxes and maintenance, and dispute resolution.
- File any agreed order or deed with the Bureau of Conveyances to reflect the new arrangement.
If negotiations fail, any co-owner may file a partition action in the circuit court in the county where the property lies. The court then may appoint commissioners to divide the land in kind or order a sale under HRS § 501-33, which can lead to a public sale that might fetch a lower price and incur additional costs.
Helpful Hints
- Begin discussions early: avoid conflicts by clarifying goals and financial capacities upfront.
- Use an independent real estate appraiser for an objective valuation.
- Consider tax implications: consult a tax advisor about capital gains, exemptions, or estate tax considerations.
- Document all communications and agreements in writing to prevent misunderstandings.
- Keep emotions in check: focus on equitable solutions and long-term family harmony.
- If talks stall, explore professional mediation before resorting to court.
- Consult a real estate attorney to review any agreement before signing or filing.