Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
When co-owners of real estate in Massachusetts cannot agree on a buyout price, they have several options:
- Private Negotiation and Appraisal: Co-owners can hire an independent real estate appraiser to determine fair market value. After appraisal, they may negotiate a buyout price based on the appraised value. A buy-sell agreement can formalize the terms.
- Mediation or Alternative Dispute Resolution (ADR): A neutral mediator can guide co-owners toward a settlement. Mediation often preserves relationships and reduces legal fees.
- Partition Action in Court: Under Massachusetts General Laws Chapter 241, any co-owner may file a partition action. The court can order:
- Partition in Kind: Physical division of the property if practicable.
- Partition by Sale: Sale of the entire property at public auction or private sale with court approval. Net proceeds are distributed according to ownership shares.
- Third-Party Sale: Co-owners may agree to sell the property to an outside buyer and split the proceeds according to their ownership percentages.
A partition action often resolves deadlocks but can be time-consuming and costly. Courts prefer partition in kind when feasible but frequently order sale if division would reduce property value.
Helpful Hints
- Obtain multiple appraisals to confirm fair market value.
- Document all negotiations in writing.
- Consider drafting a co-owner buy-sell agreement before disputes arise.
- Explore mediation or ADR to save time and legal costs.
- Review Massachusetts General Laws Chapter 241 for court procedures and timelines.