Partition and Forced Sale of Co-Owned Property under Michigan Law

Short answer: If you own real property in Michigan with other co-owners and you cannot agree about keeping or selling it, you can ask the Circuit Court to divide the property or order a sale through a partition action. The court will try to divide the land physically if practical; if it cannot be fairly divided, the court will order a sale and divide the net proceeds among owners after liens, taxes, and costs are paid.

Detailed answer — how the process works and what to expect

1. The legal basis — partition actions

Co-owners who cannot agree may bring a partition action in the Michigan Circuit Court. Michigan law provides for partition of real property owned by two or more persons. See Michigan Compiled Laws § 600.2801 et seq. (partition proceedings). For the statute, see: MCL 600.2801.

2. Who can file?

Any person with a legal interest in the property (owner with an undivided share, mortgagee in some circumstances, or person with a recorded interest) may file. Most commonly, tenants in common or joint owners who own as tenants in common file to force a sale or division. Joint tenancy and other forms of ownership can affect rights (for example, survivorship), but a partition action is typically available to co-owners while they are alive.

3. What does the complaint need to say?

A partition complaint usually identifies the property, states each party’s interest, names all co-owners and any lienholders or parties with recorded interests, and asks the court either to partition the property in kind (physical division) or, if that is impractical, to order a sale and distribute net proceeds.

4. Partition in kind vs. partition by sale

The court will consider whether the property can be fairly divided (partition in kind). If a fair physical division is impractical or would reduce value unfairly, the court will order a sale and then equitably divide net proceeds among owners after paying mortgages, liens, taxes, costs, and court-ordered fees.

5. Appointment of commissioners and the court’s role

The court may appoint commissioners (or a referee) to examine the property, value it, and report whether a division is practical or recommend sale. The court reviews the report and issues an order requiring division or sale. If the property is sold, the court supervises distribution of proceeds.

6. How liens, mortgages, taxes, and costs are handled

Liens, mortgages, unpaid property taxes, and sale costs are paid out of sale proceeds before distributing the remainder to owners. If a co-owner claims a lien or encumbrance, it must be asserted in the action so the court can resolve priorities and payments.

7. Timeline and cost

Partition actions typically take several months to over a year depending on complexity, appraisals, the need for hearings, and whether the parties contest title or claims. Costs include court filing fees, attorney fees, appraisal and commissioner fees, and sale costs. Each party generally pays their own attorney fees unless the court orders otherwise based on equitable considerations.

8. Practical outcomes

Outcomes include: (1) the court divides the land among owners; (2) one or more owners buy out others (often after court-ordered valuation); (3) the court orders a sale (public or private) and divides proceeds; or (4) the parties settle before final order (common).

9. Alternatives to filing a partition action

Before filing, consider negotiation, formal buyout offers, mediation, or private sale consent. A settlement often saves time and legal cost. If co-owners can agree on an appraiser and price, one owner can buy out the others and record a new deed.

10. Special issues to watch for

• Mortgage and tax arrearages: these reduce proceeds and can affect whether buyers will purchase the property.
• Occupancy and rent: a co-owner who occupies the property may be required to pay rent to the other owners for their share of use.
• Title problems: unresolved claims or unclear deeds complicate outcomes.
• Homestead and family protections: in rare cases, personal protections or other equitable claims by family members may affect a sale — discuss with counsel.

Step-by-step practical checklist if you are considering forcing a sale

1. Gather documents: deed(s), mortgage statements, title insurance, tax bills, insurance, any written agreements among owners.
2. Try negotiation: send a written settlement or buyout proposal and consider mediation.
3. Get an appraisal or broker opinion to establish fair market value.
4. Consult a Michigan real estate attorney to review the facts and prepare the complaint (if negotiation fails).
5. File the partition complaint in the Circuit Court for the county where the property sits; name all parties with an interest.
6. Participate in the court process: attend hearings, provide evidence (appraisals, title information), and comply with commissioners’ inspections.
7. If the court orders sale, follow court orders for sale marketing and closing; after sale, verify distribution of net proceeds.

When to call a lawyer

Talk to a Michigan attorney if: ownership documents are unclear, there are significant mortgages or liens, someone occupies the property and refuses access, parties disagree about the value or sale method, or you want to negotiate a buyout. An attorney can explain likely costs, timing, and the best strategy given your facts.

Helpful links

• Michigan Compiled Laws — Partition statute (start): MCL 600.2801
• Michigan Courts (general resource): courts.michigan.gov

Disclaimer

This page provides general information about Michigan law and is not legal advice. It does not create an attorney-client relationship. For advice specific to your situation, consult a licensed Michigan attorney who can analyze your documents and facts.