Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your situation.
Detailed Answer
When co-owners of real property in Maryland disagree on sale logistics or cost sharing, they have several routes to resolve the conflict:
1. Negotiation and Written Agreement
Co-owners may attempt to negotiate terms directly or through attorneys. A comprehensive written agreement can cover:
- Allocation of sale proceeds.
- Division of costs for maintenance, taxes, and improvements.
- Timeline and responsibilities for marketing and closing.
Documenting agreements reduces misunderstandings and creates enforceable obligations.
2. Mediation or Alternative Dispute Resolution
Neutral mediators help co-owners discuss disputes and reach a voluntary settlement. Mediation is often faster and less costly than court.
3. Partition Action in Court
If informal resolution fails, Maryland law allows any tenant in common or joint tenant to file a partition action in the circuit court for the county where the property is located:
- The court can order a partition in kind (physical division) or a partition by sale of the property. See Md. Code, Real Prop. § 3-209.
- If one co-owner pays more than his or her share of taxes or improvements, that co-owner may seek contribution from the others. See Md. Code, Real Prop. § 3-208.
After a partition sale, the court deducts permissible expenses—attorney’s fees, appraisal costs, and liens—before distributing net proceeds according to ownership shares.
4. Buyout by Co-Owner
One co-owner may offer to purchase the others’ interests at fair market value. An independent appraisal can establish a defensible price.
Helpful Hints
- Gather key documents: deed, mortgage statements, tax records, and evidence of improvements.
- Document all expenses and payments made on behalf of the property.
- Consult a real estate attorney early to understand deadlines and court costs.
- Consider mediation to preserve relationships and save on litigation fees.
- Keep clear records of any agreements, even informal ones, to avoid future disputes.