Hawaii: Options When a Co-Owner Asks the Court Only for a Sale (No Buyout Terms) | Hawaii Partition Actions | FastCounsel
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Hawaii: Options When a Co-Owner Asks the Court Only for a Sale (No Buyout Terms)

What to do when a co-owner asks the court only for a sale (no buyout terms)

State law covered: Hawaii

Detailed Answer

If a co-owner has filed a partition action and asks the court to sell the property without proposing any buyout terms, you still have meaningful options under Hawaii law. Partition actions let co-owners force a division of ownership when they cannot agree. A court can divide the property (partition in kind) or order a sale and divide the proceeds. The requesting owner does not control every step—responding owners can protect their interests through pleadings, motions, evidence, and settlement efforts.

Key steps and options

  • Ask for partition in kind (division of the property): If the property can be physically divided fairly (for example, by dividing acreage or separate units), ask the court to award each owner physical shares instead of ordering a sale. Courts prefer partition in kind when it is practical.
  • Demand an appraisal and accounting before any sale: Seek a court-ordered appraisal to establish fair market value. Ask the court for a full accounting of mortgage balances, taxes, liens, maintenance costs, rental income, and credits. These figures affect any buyout calculation and the proper division of sale proceeds.
  • Propose a buyout yourself: You can offer to purchase the other owner’s interest at an appraised value (adjusted for liens and credits). Put a formal buyout proposal in writing and ask the court to consider it as an alternative to a sale. If the other owner refuses, the court can still order a sale, but your offer can influence timing and terms.
  • File motions to set terms or delay sale: Ask the court to set (1) a valuation method, (2) deadline to accept buyout offers, or (3) a stay of sale while you secure financing, obtain an appraisal, or pursue mediation. Courts often set procedures to make sure any sale is fair and orderly.
  • Request appointment of a commissioner or referee: In many partition actions, courts appoint a commissioner to manage valuation, marketing, and sale. You can ask the court to appoint a neutral officer to ensure the sale process follows fair procedures and that sale costs are reasonable.
  • Pursue settlement or mediation: Mediation can produce a mutually acceptable buyout, timeshare, or sale plan with terms tailored to both parties. Courts often encourage or require alternative dispute resolution before a sale order becomes final.
  • Object to an immediate sale if sale would be unjust: If a sale would cause prejudice (e.g., a forced sale at under-value, no chance for buyout, or lack of accounting for mortgage and expense credits), ask the court to delay or set conditions for sale.
  • Protect your financial position: Keep paying mortgage, HOA dues, taxes, and maintenance if you occupy the property to avoid liens or claims that reduce your equity. Document expenses you pay; you may claim credit for them if proceeds are divided later.

How courts decide between division and sale

Under Hawaii procedure, courts examine whether partition in kind is practical and equitable. If not, they order a sale and divide the proceeds among owners after debts, taxes, and costs. The court’s goal is a fair outcome for all co-owners; it will normally require accurate valuation and proper accounting before approving a sale. For statutory text and the mechanics for partition actions in Hawaii, see the Hawaii Revised Statutes on partition actions: Hawaii Rev. Stat. ch. 669 (Partition).

Practical example (hypothetical)

Suppose two siblings co-own a Honolulu home. One sibling files for partition and asks only for a court-ordered sale. The other sibling responds by:

  1. filing an answer that objects to immediate sale and asks for partition in kind or an appraisal;
  2. submitting a written buyout offer based on a licensed appraisal;
  3. asking the court to appoint a commissioner and to require a court-ordered accounting of the mortgage and expenses; and
  4. proposing mediation to try to reach a buyout or redistributive settlement.

The court can then choose between division, sale under controlled procedures, or approving a settlement if the parties agree.

Documents and evidence you should gather now

  • Deed and title documents showing ownership shares
  • Mortgage statements and payoff figures
  • Property tax bills and HOA statements
  • Recent appraisals, broker price opinions, or comparable sales data
  • Records of rent received, repairs, and maintenance expenses
  • Any written offers or communications about buyouts

When to talk with an attorney

If a partition petition is filed against you, contact a Hawaii real estate litigation attorney early. An attorney can:

  • prepare your response and objections;
  • draft a formal buyout proposal or settlement; and
  • move to protect your financial interests (seek a stay, valuation procedure, or appointment of a neutral commissioner).

Helpful Hints

  • Do not ignore a partition complaint—missing deadlines can limit your options.
  • Get an independent appraisal early to support any buyout offer.
  • Keep careful records of money you pay toward the property; you may be entitled to credits.
  • Consider mediation before costly litigation; it often produces faster and fairer buyouts.
  • Confirm who is responsible for sale costs and realtor commissions before a forced sale.
  • Ask the court to require competitive bidding or specific sale procedures if you fear an under-market sale.
  • Remember: a court-ordered sale divides proceeds, but it does not automatically set buyout terms unless the court or the parties agree.

Disclaimer: This article explains general legal concepts under Hawaii law for educational purposes only. It does not constitute legal advice, and it is not a substitute for consulting a licensed attorney about your specific situation.

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.