Detailed Answer
If you co-own real estate in Kentucky with two other people and you cannot agree about keeping or selling the property, Kentucky law allows a co-owner to force a sale through a court action called a partition. A partition action asks the circuit court to either divide the property among the owners (a partition in kind) or, if a fair physical division is impractical, order the property sold and distribute the net proceeds among the owners according to their ownership shares.
Legal basis: Kentucky permits actions affecting title to real estate and equitable remedies such as partition. For statutory text and to locate relevant provisions, consult the Kentucky Revised Statutes and the Kentucky Court of Justice resources (start here: Kentucky Revised Statutes and Kentucky Court of Justice).
How a partition action typically works in Kentucky
- Try to resolve the dispute first. Courts expect co-owners to attempt negotiation, buyout offers, or mediation before filing. An agreed sale or buyout saves time and legal costs.
- File a partition petition in circuit court. If negotiation fails, a co-owner files a petition in the circuit court for the county where the property lies. The petition names all co-owners and anyone with a recorded interest (mortgage holders, lienholders).
- Court determines ownership shares and liens. The court examines title, recorded deeds, and other evidence to determine each party’s fractional interest. The court also addresses mortgages, liens, taxes, and unpaid assessments—these generally attach to the property and must be paid from sale proceeds.
- Court chooses partition in kind or sale. If the court finds the land can be physically divided without unfairness or prejudice, it may order a partition in kind. If division is impractical or would materially reduce value, the court will order a sale.
- Sale process and distribution. If the court orders sale, it typically appoints a commissioner, master, or special commissioner to market and sell the property—often at public auction or by private sale under court supervision. After sale, the court directs payment of mortgages, liens, taxes, and sale costs, and distributes net proceeds according to ownership shares.
- Options short of sale. Before or during the case, co-owners can negotiate a buyout (one or more owners pay others their share based on an appraisal or negotiated price). Courts sometimes approve buyouts or adjust shares for improvements or payments made by one owner.
Important practical points under Kentucky law
- Ownership shares matter. The court divides proceeds based on each owner’s legal interest (example: tenants in common each get their percentage).
- Mortgages and liens survive. A mortgage on the property generally must be paid from sale proceeds, or the purchaser may take subject to the mortgage, depending on the sale order and local practice.
- Costs reduce proceeds. Court costs, commissioner fees, advertising, and attorneys’ fees (when allowed by statute or court) come out of sale proceeds before distribution.
- Timing and expense. Partition suits can take many months and involve litigation costs. Mediation and settlement often save money and time.
- Tax consequences. A forced sale produces taxable gains or losses. Consult a tax advisor about capital gains, basis, and reporting responsibilities.
Hypothetical illustration
Three people own a house as tenants in common, each with a one-third interest. Two want to keep the property; the third wants a sale. The third owner files a partition action in the county circuit court. The court determines a fair physical division is impractical and orders a sale. A commissioner sells the house, pays off the mortgage and taxes, deducts sale and court costs, and gives the remainder to the three owners in one-third shares.
How to start—practical steps you can take today
- Collect documents: deed, mortgage statements, property tax bills, insurance, HOA documents, and any written agreements among owners.
- Get a current market appraisal or broker opinion of value.
- Discuss a buyout or mediated settlement with the co-owners. A neutral mediator may help.
- If settlement fails, consult a Kentucky real estate attorney to evaluate a partition action and file the petition in circuit court if appropriate.
Helpful Hints
- Document everything: communications, offers, and payments help the court decide credits for improvements or contributions.
- Consider mediation or arbitration clauses in agreements—those can require non‑litigation dispute resolution before a court case.
- Ask the lawyer about the likelihood of a court approving a private sale vs. public auction and how the sale will be conducted locally.
- Check whether any co-owner qualifies for homeowner exemptions that affect sale proceeds or taxes.
- Remember liens follow the property. Obtain payoff amounts for mortgages and any other liens before settlement or court sale.
- Keep realistic expectations about timeline and costs; court-ordered sales often take longer than private sales by agreement.
Where to look for the law: Start with the Kentucky Revised Statutes and Kentucky Court of Justice materials for forms and local procedures: Kentucky Revised Statutes and Kentucky Court of Justice. Your county circuit court clerk can also explain filing steps and local practice.
Next steps: If you want to pursue a partition, consult a Kentucky real estate attorney. An attorney can review your title, calculate likely distributions, help negotiate a buyout, or prepare and prosecute a partition petition in the appropriate circuit court.
Disclaimer: This article explains general legal principles under Kentucky law and is for educational purposes only. It does not provide legal advice and does not create an attorney-client relationship. For advice about your specific situation, consult a licensed attorney in Kentucky.