Detailed Answer
Short answer: If mediation fails in Iowa, you can file a partition action in district court to compel a physical division of the land (partition in kind) or, if division is impractical, a court-ordered sale (partition by sale) and division of the proceeds among co-owners. The court follows Iowa’s partition statutes, considers liens and mortgages, may appoint commissioners or a referee, and allocates costs and any credits for contributions or improvements.
What a partition action is under Iowa law
A partition action is a lawsuit one or more co-owners files to divide property they own together when they cannot agree on use or disposition. Iowa’s partition rules are set out in the Iowa Code (see Iowa Code chapter 648). The court’s aim is to give each co-owner their fair share, either by physically dividing the land or by selling it and splitting the proceeds.
Reference: Iowa Code chapter 648 (Partition) — see the Iowa Legislature website for the code: https://www.legis.iowa.gov/docs/ico/chapter/648.
Where to file and who must be included
File the petition in the district court in the county where the property lies. The petition must identify the property, state each party’s claimed interest, and name all persons with a recorded or known claim. The court must bring in all co-owners and anyone with a recorded lien or mortgage so the proceeding can clear title and distribute proceeds correctly.
Typical court process and timeline
- Filing: You (the petitioner) file a petition for partition and pay filing fees.
- Service and response: The court serves co-owners and lienholders. Defendants usually have a set time to respond.
- Pretrial steps: Parties exchange documents and the court may hold hearings. The court may order a referee or commissioners to view the land, determine whether partition in kind is practicable, or recommend sale terms.
- Final order: If the court orders partition in kind, the property is divided. If the court finds physical division impractical or inequitable, it orders a sale—often by public auction or supervised sale—and divides net proceeds after paying liens and costs.
Timeframe varies. Simple cases may resolve in a few months. Complex disputes with title issues, lien claims, or contested valuations can take a year or more.
Partition in kind vs. partition by sale
Partition in kind means the court divides the property so each co-owner receives a distinct parcel. Courts prefer this when a fair physical division is possible without prejudice. If the property cannot be fairly divided (for example, a single residential lot or an irregular shaped parcel used as a single farm unit), the court will order a sale and division of proceeds.
How liens, mortgages, and expenses are handled
Liens and mortgages generally must be paid from sale proceeds before co-owners share the remainder. The court will determine the order of payment for liens and may require that proceeds first satisfy valid encumbrances. The court can also account for contributions by owners—such as mortgage payments, taxes, or substantial improvements—when calculating each owner’s net share.
Costs, fees, and claims for credit
Costs of the partition (attorney fees, commissioners’ fees, advertising and sale costs, and court costs) are typically paid from the proceeds of sale or apportioned by the court. If a co-owner paid for improvements or carried more than their share of expenses, they can ask the court for credit or reimbursement. Keep careful records of payments, improvements, and expenses.
Practical alternatives to filing suit
Before or after mediation fails, consider: one co-owner buying out the others; negotiating a written partition agreement that sets terms for division or sale; refinancing or paying off mortgage(s); or selling the property by mutual agreement. A voluntary resolution typically costs less and resolves faster than litigation.
When to hire an attorney
Consider hiring an attorney if title or lien questions exist, if co-owners vigorously contest ownership shares, or if you expect complex accounting issues (improvements, payment histories, or business uses). Look for an attorney experienced in Iowa real property litigation and partition actions.
What you should prepare before filing
Gather the deed(s), title policy (if any), mortgage statements, tax bills, receipts for improvements, leases, survey and plat maps, and any written agreements among owners. Preserve clear records of payments and contributions you claim for credit.
How the court divides proceeds
After sale and payment of liens and costs, the court distributes net proceeds to co-owners according to their legal ownership shares (tenancy in common, joint tenancy, etc.). If ownership percentages are unclear, the court will try to determine each party’s interest from deeds, payments, and proof presented.
Disclaimer: This article explains general principles of Iowa law and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Iowa attorney.
Helpful Hints
- Document everything: save deeds, tax records, mortgage payments, receipts for improvements, and any communications with co-owners.
- Check title and liens early: a title search will show mortgages, tax liens, and other encumbrances that shape outcomes.
- Consider a buyout offer: presenting a fair cash offer to co-owners can avoid court and speed resolution.
- Ask the court for a commissioner: commissioners can provide valuations and recommendations that help the court decide whether to divide or sell.
- Expect costs: partition suits carry filing fees, attorney fees, appraisal and commissioner fees, and sale costs—factor these into your decision.
- Think about timing: sales require marketing and closing, so a partition by sale commonly takes several months from order to distribution.
- Talk to a local real property attorney: they can explain how Iowa Code chapter 648 applies to your facts and help calculate likely net recoveries after liens and costs.