FAQ: Co-owned Inherited Property and Partition in Michigan

Short answer

If you own inherited land together with other heirs and those co-owners will not voluntarily sell or buy you out, you can ask a Michigan circuit court to partition the property. The court can either divide the land (partition in kind) or order a sale and divide the net proceeds among the owners. Under some circumstances the court will approve a private sale, but it often requires showing that a private sale is fair and in the best interest of all owners.

How partition works in Michigan

Michigan law allows co-owners of real property to seek a judicial partition. The relevant statutory framework governing partition actions is found in Michigan’s statutes on partition (see Mich. Comp. Laws Ann. § 600.3301 and following). For the statutory language, see: MCL § 600.3301.

Typical court outcomes

Partition in kind: the court orders the property physically divided among co-owners if it can be divided fairly and without material harm to value.
Partition by sale: if physical division is impractical or would greatly reduce value, the court orders a sale of the property and divides the proceeds after paying liens, taxes, and costs.
Private sale vs. public sale: courts may approve a private sale when it is fair, where a buyer is ready, or where a private sale will likely yield more than a forced public sale or auction. Otherwise the court may order a judicial or sheriff’s sale.

Step-by-step process to seek partition in Michigan

Confirm ownership and shares. Review the deed(s) and the probate records that transferred the inherited interest. Determine each co-owner’s percentage share.
Try voluntary solutions first. Offer a buyout, propose a private sale where the co-owners split proceeds, or agree to hire a broker. Courts favor resolution without litigation when possible.
Send a written demand. If negotiation fails, send a written demand for partition and a proposed timeline. This creates a record that you tried to resolve the dispute without court.
File a partition action in circuit court. File in the county where the property sits. The complaint names all co-owners and describes each person’s interest and the relief sought (partition in kind or partition by sale). The State Court Administrative Office maintains court form resources: Michigan court forms and resources.
Ask for a private sale (if that is your goal). In the complaint or a later motion you can ask the court to approve a private sale to a specific buyer or on specified terms. To succeed you should supply an appraisal, a purchase contract, or other evidence showing the private sale is at a fair price and will maximize value for all owners.
Court-appointed commissioners or referees. The court may appoint commissioners to examine the property, determine whether a division in kind is feasible, and recommend sale procedures. If the court orders a sale, it will decide whether the sale will be public or private and set terms for distribution of proceeds.
Sale, distribution, and closing. After sale, the court signs an order confirming the sale and directing distribution of net proceeds among co-owners according to their shares, after paying mortgages, liens, taxes, attorney fees and court costs.

How to improve the chance of a private sale

Courts typically evaluate whether a private sale is fair and likely to produce a better outcome than a public auction. To strengthen your position:

Obtain a recent independent appraisal showing the offered price is reasonable.
Present a firm purchase contract or evidence of an earnest-money deposit from a credible buyer.
Show that a public sale would be likely to result in lower proceeds (e.g., unusual property conditions, remote location, or specialized market).
Offer protections for co-owners—escrow, independent closing agent, court confirmation of sale proceeds, and deductions for liens and costs clearly explained.
Be prepared to pay or to share court and sale costs that otherwise would reduce co-owners’ net proceeds.

Practical issues and consequences

Costs and timeline: partition litigation takes time and costs (filing fees, appraisals, commission fees, attorneys). Even a straightforward partition may take months; contested matters take longer.
Liens and mortgages: outstanding mortgages or liens must be paid from sale proceeds or otherwise resolved before distribution.
Buyouts: one co-owner can often buy out the others by paying their shares, sometimes at a negotiated discount to avoid court fees.
Occupation and expenses: court may order allocation of rental income, property taxes, insurance, and maintenance costs during litigation.
Finality: a court-ordered partition or sale ends the co-ownership interest and clears title according to the court’s decree (subject to liens and appeals).

Common questions

Can I force a private sale to a buyer I found?

Yes, you can ask the court to approve a private sale to that buyer, but the court must be satisfied the sale is fair and likely to produce a reasonable price. Present an appraisal and purchase agreement to support your request.

Can a co-owner block the private sale?

A co-owner can oppose it, but the court will decide. If the court finds the private sale would disadvantage other owners relative to a public sale, it can deny the private sale and require a public sale or different terms.

Who pays fees and costs?

The court typically charges costs, commissioners’ fees, appraisal fees, and attorney fees against sale proceeds before distribution. In some cases the court can allocate attorney fees if one party acted unreasonably.

Helpful hints

Start with a clear title search and probate records to confirm ownership and shares.
Document every attempt to resolve the matter without court; courts expect parties to try negotiation first.
Get an independent appraisal early so you can compare offers and show the court the private sale is fair.
Consider mediation to reach a sale agreement—mediated resolutions are quicker and cheaper than litigation.
If you want to buy the property yourself, prepare financing proof and an offer; courts often allow co-owners to buy at market terms.
Consult a Michigan real estate or probate attorney before filing—an attorney can prepare pleadings, advise strategy, and present evidence that favors a private sale.

Where to get forms and more information

Michigan legislative text for partition statutes: MCL § 600.3301 (and following sections).
Michigan court forms and administrative resources: Michigan SCAO forms and resources.
Consider MichiganLegalHelp.org for plain-language resources on partition and probate steps (non-gov guidance).