How co-owned farmland is divided or sold in Maine: a step-by-step FAQ
Short answer: In Maine, co-owners who cannot agree on dividing or selling farmland commonly try negotiation, buyouts, or a partition action in court. A court can order a physical division (partition in kind) when feasible or a forced sale (partition by sale) when division is impractical. The process involves valuation, possible appointment of commissioners, handling of liens and taxes, and allocation of proceeds according to ownership shares.
Detailed answer — what steps are involved under Maine law
This section explains the practical and legal steps that usually occur when co-owners of farmland in Maine seek to divide property or force its sale. The explanation assumes typical co-ownership (tenancy in common) and uses a brief hypothetical to illustrate.
Hypothetical: Three siblings own a 150-acre farm as tenants in common, each holding a 1/3 interest. Sibling A wants to sell; Siblings B and C want to keep the land for farming. They try to reach an agreement but cannot. The steps below describe what happens next.
1. Try to resolve the dispute without court involvement
- Open negotiation: Ask whether one owner will buy out the others. A buyout uses an agreed valuation and avoids legal fees and court delay.
- Mediation or neutral appraisal: Use a mediator or hire an appraiser to establish market value and fair terms.
- Lease or management agreement: Owners who want to keep farming can offer a rental or management payment to the owner who wants liquidity.
2. Consider partition by agreement
If the co-owners can agree, they can create a written plan to divide the acreage physically or sell and split proceeds. A recorded deed or written settlement should describe the division or sale terms and allocate costs and taxes.
3. Filing a partition action in court
If negotiation fails, any co-owner may file a civil action asking the court to partition the property. In Maine, partition proceedings and civil filing rules are handled through the state courts; relevant statutes and procedures are available through the Maine Legislature and the Maine Judicial Branch (see resources below).
Key procedural steps in a partition action:
- Complaint or petition: The plaintiff files a complaint stating the ownership interests and requesting partition or sale.
- Service and response: Other co-owners are served and may file answers or counterclaims (for example, asking for an accounting of rents or challenging ownership percentages).
- Pretrial matters: Parties exchange information about titles, liens, mortgages, taxes, and any easements or conservation restrictions that affect division.
4. Valuation, accounting, and liens
The court or the parties will arrange for appraisal to establish market value. Outstanding mortgages, liens, property taxes, and special assessments generally must be satisfied from the sale proceeds or otherwise allocated according to law and the parties’ interests.
5. Partition in kind vs. partition by sale
The court has two primary remedies:
- Partition in kind (physical division): If the land can be divided fairly while respecting practicality and marketability — for example, by drawing new boundary lines that result in reasonably equal parcels — the court may order physical division. The court considers whether division will produce uneven values, leave awkward parcels, or impair the farm’s productive use.
- Partition by sale (forced sale): If an in-kind division is impractical, would substantially reduce the property’s value, or cannot be made fairly, the court may order sale and division of net proceeds among the owners by ownership share.
6. Appointment of commissioners or referees
The court often appoints neutral commissioners, referees, or a master to survey, prepare a plan for division, recommend sale procedures, and report back to the court. The commissioners’ fees and court costs are typically paid from the proceeds or divided among owners.
7. Sale mechanics and distribution of proceeds
- If the court orders sale, the court will supervise the sale method (public auction, private sale, or sealed bids) and confirm the sale. The court ensures a commercially reasonable sale process.
- After sale, the court directs payment of valid liens, mortgages, taxes, sale costs, and attorney fees (if awarded). Net proceeds are distributed according to ownership percentages.
8. Challenges, appeals, and final judgment
Parties may object to appraisals, commission reports, or sale procedures and ask the court to reconsider. Courts can adjust awards for improvements, waste, or unequal contributions. A final judgment resolves title allocation or proceeds distribution and can be appealed under Maine appellate rules.
9. Practical issues affecting farmland-specific partition
- Agricultural uses: Courts consider how division affects farm operations, access to roads, water rights, shared infrastructure (barns, irrigation), and environmental constraints.
- Conservation easements and subsidies: Protected lands or government program enrollments can limit division or sale options. Check program rules before acting.
- Tax consequences: Forced sales or buyouts may create capital gains, eligibility changes for farm-related tax benefits, or reassessment for property tax. Consult a tax advisor.
Costs, timeline, and likely outcomes
Costs include filing fees, appraisal and survey fees, commissioners’ fees, and attorneys’ fees. The timeline can range from several months (if parties settle quickly) to a year or more for contested cases. Outcomes commonly are: an agreed sale or buyout, a court-ordered partition in kind if division is practical, or a court-ordered sale when division would be unfair or impractical.
Relevant Maine resources and statutes
For the full text of Maine statutes and more on court procedure, consult the Maine Legislature and the Maine Judicial Branch:
- Maine Revised Statutes (search statutes and keyword “partition”): https://legislature.maine.gov/statutes
- Maine Judicial Branch — Self-Help and civil case information: https://www.courts.maine.gov/
These resources will help you find the exact statutory provisions and forms that apply to partition and related civil procedures in Maine courts.
Helpful hints — practical tips for co-owners of farmland in Maine
- Begin with open communication: A negotiated buyout or management agreement often saves money and preserves family relationships.
- Get an independent appraisal early to set realistic expectations about value.
- Document contributions: Keep records of improvements, payments for taxes, and maintenance to support claims for credits or reimbursements.
- Check mortgages and liens before negotiating: the holder of a mortgage may need to consent to certain sales or subdivisions.
- Consider a partial buyout: One or more owners may buy out others instead of selling the entire farm.
- Plan for access: Ensure any division preserves legal road access, utility connections, and necessary easements for remaining parcels.
- Consult professionals: Talk with a Maine-licensed real estate attorney, land surveyor, and a tax advisor early in the process.
- Expect court expenses and time: Litigation can be expensive and slow; weigh costs against the likely benefit of forcing a sale.
Next steps if you’re facing this in Maine
1) Try negotiation or mediation first. 2) If that fails, collect title documents, mortgage statements, tax bills, and any leases. 3) Seek a local attorney experienced in Maine property and partition law for tailored advice and to file a partition action if needed.
Disclaimer: This article explains general Maine legal concepts related to partition and forced sale of co-owned farmland. It is educational only and does not constitute legal advice. For advice tailored to your situation, consult a licensed attorney in Maine.