Detailed Answer
Co-owners of real property in Kentucky who cannot agree on sale logistics or cost sharing can pursue a partition action under Kentucky Revised Statutes (KRS) Chapter 426. A partition action lets the court divide or sell the property and distribute proceeds among co-owners.
1. Partition in Kind vs. Partition by Sale
KRS 426.060 authorizes the court to order a physical division of property when it preserves equal value for all parties. If division in kind is impractical, the court orders a sale and divides net proceeds according to ownership shares (KRS 426.060).
2. Appointment of a Commissioner
Under KRS 426.070, the court appoints a commissioner to assess, manage, and sell the property. The commissioner conducts a public auction or private sale under court direction (KRS 426.070).
3. Allocation of Costs
The court allocates sale, maintenance, and legal costs among co-owners based on ownership percentages. A co-owner may advance funds for necessary repairs or upkeep; the court can later order reimbursement with interest.
4. Alternative Dispute Resolution
Before filing suit, co-owners may pursue mediation or arbitration. Many Kentucky circuit courts offer mediation programs to help parties agree on sale price, timing, and expense sharing.
5. Buyout Options
A co-owner may propose buying out the others at fair market value determined by an independent appraisal. A private buyout can save on court costs and shorten timelines.
Helpful Hints
- Review your deed and verify ownership percentages before negotiations.
- Obtain a professional appraisal to set a fair market value.
- Explore free or low-cost mediation programs through your local circuit court.
- Keep detailed records of all expenses, repairs, and improvements.
- Consider consulting a real estate attorney to explain procedural requirements and protect your interests.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Kentucky for guidance tailored to your situation.