Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an attorney for guidance on your situation.
Detailed Answer
When co-owners of property in Maine cannot agree on sale logistics or how to share costs, they have several legal pathways to resolve the dispute.
1. Negotiate a Buyout
One co-owner may offer to purchase the other’s interest at a mutually agreed price. This option avoids court involvement and allows flexible payment terms. Draft a written agreement specifying price, closing date and cost allocation.
2. Mediation or Alternative Dispute Resolution
Maine courts encourage mediation to settle co-ownership disputes before litigation. A neutral mediator helps co-owners negotiate sale timing, price and expense sharing. If successful, parties sign a binding settlement agreement.
3. Partition Action in Court
If informal methods fail, a co-owner can file a partition action under Maine Revised Statutes Title 14, Section 6321. The court can:
- Order a physical partition by dividing the land if feasible.
- Order a partition by sale—property is sold at auction or private sale; proceeds are divided according to each owner’s share.
Partition actions typically require paying court costs and attorney fees, which the court may allocate among co-owners. See Maine Rev. Stat. tit. 14, § 6321 (https://legislature.maine.gov/statutes/14/title14sec6321.html).
4. Forming an LLC or Trust
Co-owners can form a limited liability company (LLC) or trust to hold the property. An operating agreement can spell out sale procedures and cost contributions, creating clear rules for future decisions.
Helpful Hints
- Document every agreement in writing to avoid misunderstandings.
- Gather updated property valuations to support fair buyout or sale decisions.
- Consider splitting closing costs and commissions proportionally to ownership shares.
- Keep lines of communication open—early cooperation can save time and expense.
- Consult a Maine real estate attorney to review agreements before signing.