Disclaimer: This article provides general information about Maine co-ownership disputes. It does not constitute legal advice. Always consult a qualified attorney about your specific situation.
Detailed Answer
When co-owners in Maine cannot agree on a buyout price for jointly owned real estate, they have several paths to resolve the impasse:
1. Negotiation and Independent Appraisal
Co-owners can hire a licensed real estate appraiser to establish fair market value. Using that appraisal as a starting point, they may negotiate a buyout price. This approach is cost-effective and maintains control over timing and outcome.
2. Mediation or Arbitration
If direct talks stall, co-owners can agree to mediation or binding arbitration. A neutral third party helps reach a settlement or issues a decision on valuation. Written co-ownership agreements often include clauses requiring these methods before any court action.
3. Court-Ordered Partition
Under Maine law, any co-tenant has the statutory right to seek a court-ordered partition:
- 14 M.R.S. § 6321 (Right to partition): A co-owner may file an action to divide or sell the property.
- 14 M.R.S. § 6322 (Partition in kind): If physical division is fair and practicable, the court orders each owner a distinct portion.
- 14 M.R.S. § 6323 (Partition by sale): If division would be inequitable or impossible, the court orders the property sold at auction or public sale and divides proceeds according to ownership interests.
In a partition action, the court appoints commissioners to appraise the property and handle sale logistics. After sale, closing costs and commissions are paid, then net proceeds are distributed pro rata.
Helpful Hints
- Review any existing co-ownership or buy-sell agreements for valuation procedures.
- Obtain at least two independent appraisals to ensure accuracy.
- Consider mediation clauses to reduce legal fees and maintain privacy.
- Document all offer attempts in writing to show good-faith negotiations.
- Consult a Maine real estate attorney early to understand costs, timelines, and strategic options.