How to Force Sale of Shared Property Through Partition in Hawaii | Hawaii Partition Actions | FastCounsel
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How to Force Sale of Shared Property Through Partition in Hawaii

Detailed Answer

This article explains how a co-owner in Hawaii can force the sale of shared real property through a partition action when the other co-owners refuse to make buyout offers. It summarizes the legal options, the typical court process, and practical steps you can take. This information is educational only and is not legal advice. For help with a specific matter, consult a licensed Hawaii attorney.

What a partition action is (basic concept)

A partition action asks the court to divide jointly owned real property among the owners. Courts generally prefer partition in kind (physically dividing the land) if it can be done fairly. If physical division is impractical or would be prejudicial to some owners, the court orders partition by sale and divides the net proceeds among the co-owners according to their ownership shares.

Hawaii’s laws governing partition and related remedies can be found in the Hawaii Revised Statutes and the Hawaii court system. See the state statutes chapter on partition: HRS Chapter 669 (Partition), and the Hawaii Judiciary website: courts.state.hi.us.

Who may file and where

Any person who holds an ownership interest in the property (a tenant in common, a joint tenant, or someone with an undivided interest) may file a partition action. File the complaint in the appropriate Hawaii circuit court where the property is located. The complaint must identify the property, all co-owners and their interests, and the relief sought (division in kind or sale).

Typical court process to force a sale

  1. File a partition complaint. The complaint names all co-owners and requests partition. The court will issue process and the co-owners must be served.
  2. Preliminary hearings and pleadings. Co-owners can respond, assert defenses, or assert claims (liens, equitable offsets for improvements or payments, etc.). You may ask the court for interim relief—e.g., appointment of a receiver to collect rents or to prevent waste.
  3. Determination of whether partition in kind is feasible. The court evaluates whether the property can be fairly divided without prejudice. If division in kind is impractical (common for single-family homes or small lots), the court is likely to order sale.
  4. Appointment of commissioners or a referee. The court may appoint neutral persons to value the property, to oversee sale procedures, and to report results to the court.
  5. Sale ordered and conducted. The sale may be public (auction) or private under court supervision. The court will direct how proceeds are distributed after paying liens, mortgages, and sale costs.
  6. Distribution of net proceeds. Proceeds are divided according to ownership shares, subject to adjustments (e.g., credits for mortgage payments made by one co-owner, for improvements, or for rents and profits).

What to do when other co-owners won’t make a buyout offer

If co-owners refuse to negotiate or make a buyout offer, you can still proceed with a partition action and ask the court to order a sale. Courts do not require co-owners to offer to buy out others before ordering a sale. Your complaint can request either (a) an order compelling partition in kind if feasible, or (b) an order compelling sale and distribution of proceeds. If a buyout is possible, you may still attempt to negotiate a buyout yourself; but if co-owners decline, the court can force sale.

Key practical and legal points to prepare

  • Prove your ownership. Provide deeds, title reports, and payment records to show each co-owner’s share.
  • Identify liens and mortgages. Any mortgages, tax liens, or other encumbrances will be paid from sale proceeds in order of priority. If a mortgage exists, lender consent or payoff is part of the sale process.
  • Document contributions and claims. Keep records if you paid mortgage installments, property taxes, or made improvements. The court can adjust distributions to reflect contributions or expenses and can order an accounting for rents and profits.
  • Consider interim protections. Ask the court for a receiver, an injunction against waste or transfers, or temporary orders about occupancy and rents while the case proceeds.
  • Valuation matters. Get a professional appraisal. The court or appointed commissioners will consider fair market value when arranging sale.

Costs, timeline, and outcomes

Partition actions can take several months to more than a year, depending on complexity and whether co-owners fight the case. Costs include filing fees, attorney fees, appraisal and commissioner fees, and sale costs. Net proceeds are divided after paying these costs and satisfying liens.

Defenses and complications to be aware of

  • Co-owners may claim the property is not subject to partition (e.g., a trust, tenancy governed by special agreement, or homestead protections).
  • Pending bankruptcy by a co-owner may impose an automatic stay and delay sale.
  • Family law or probate matters may affect ownership rights and complicate partition timing.

Where to find forms and additional Hawaii resources

  • Hawaii Revised Statutes — see the chapter on partition: HRS Chapter 669.
  • Hawaii Judiciary: general court information and local circuit court contacts: courts.state.hi.us.
  • Hawaii State Bar Association — lawyer referral and information: hsba.org.

Helpful Hints

  • Start by gathering deeds, title reports, mortgage statements, tax bills, and proof of any payments or improvements. Organized records make a stronger case.
  • Get an independent appraisal early to set realistic expectations and to use as evidence if needed.
  • Try mediated negotiation before filing. A mediated buyout can save time and costs, but if co-owners refuse, be prepared to litigate.
  • Ask the court for a receiver if co-owners are withholding rents or allowing waste—this protects the property value while the case proceeds.
  • Record a lis pendens (notice of the pending action) so potential buyers or lenders learn of the dispute and the pending partition.
  • Understand tax consequences: sale proceeds may trigger capital gains tax or affect basis; consult a tax advisor.
  • Consider whether a private sale negotiated through a court-appointed process will yield a higher net price than a public auction.
  • Expect the court to consider fairness. If you paid more than your share of mortgage or taxes, ask the court for an accounting and credit against distribution.

Next steps: If you want to force a sale, consult a Hawaii attorney experienced with partition actions to evaluate your facts, prepare the complaint, and represent you in court. If cost is a concern, look into the Hawaii State Bar Association’s referral resources or the Judiciary’s self-help information to learn filing procedures.

Disclaimer: This article is educational only and does not create an attorney-client relationship or constitute legal advice. For advice about your specific situation, consult a licensed Hawaii attorney.

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.