How Michigan law handles a co-owner who refuses to sell
This FAQ explains how Michigan law lets co-owners force a sale of real property when some family members want to sell and others refuse. It summarizes the legal framework, typical steps, likely outcomes, and practical tips to prepare. This is educational information only and not legal advice.
Detailed answer — legal framework and what to expect
When multiple people own real property in Michigan (for example, family members who hold title as tenants in common), a co-owner who wants to end joint ownership can ask a court to divide or sell the property through a partition action. Michigan’s statutory scheme provides the procedure and remedies for partition actions (see Michigan Compiled Laws, commonly cited as MCL 600.2801 et seq.).
Who can file
Any person who has an ownership interest in the property (a legal owner on title) may file a partition action. That typically means tenants in common or co-owners whose names appear on the deed. A life tenant or holder of certain limited interests may have different rights; an attorney can analyze unusual ownership interests.
What a Michigan court can do
- Partition in kind: The court may physically divide the property into separate parcels and give each co‑owner a portion. This works only when the land can be fairly divided without undue prejudice to any party.
- Partition by sale: If fair physical division is impracticable or would significantly reduce value, the court may order the property sold and distribute the net proceeds among owners according to their ownership shares.
- Equitable adjustments: The court can account for liens, mortgages, payments for improvements, the contribution of one owner to mortgage or taxes, and other equitable credits or debits before dividing proceeds.
Typical procedure and timeline
- Confirm ownership and interests (check the deed and title records).
- Attempt negotiation or mediation (courts often expect parties to try to resolve disputes without litigation).
- If no agreement, file a partition complaint in the appropriate Michigan circuit court. The complaint names all co-owners and requests partition in kind or sale.
- The court may order an appraisal, a hearing, and evidence about feasibility of dividing the land, values, liens, and contributions by owners.
- If the court orders sale, sale procedures typically follow court supervision; net proceeds are distributed according to shares after costs, liens, and court-ordered adjustments.
Timelines vary. A contested partition that requires appraisal and hearings can take many months or longer, depending on court backlog and case complexity.
Costs, attorney fees, and risks
Filing a partition action involves court filing fees, appraisal fees, attorney fees, and potential sale costs. Michigan courts generally allocate costs and may make equitable orders about reimbursement; but attorney fees are not automatically shifted unless a statute or contract authorizes them or the court finds a reason to award fees. Losing parties may still be liable for a portion of costs. Consider the cost/benefit of litigation versus negotiated buyout.
Other legal issues that can affect results
- Type of ownership: Joint tenancy and tenancy in common have different consequences (a joint tenancy may include rights of survivorship).
- Mortgages and liens: Outstanding mortgages remain attached to the property; liens must be paid from sale proceeds in priority order.
- Homestead and occupancy: Certain statutory protections or family circumstances may affect timing or practical outcome; the court considers fairness.
- Title defects: Disputes about who holds title or the extent of an owner’s interest can complicate or delay partition.
Practical alternatives to forced sale
Before filing suit, consider alternatives that often save time and cost:
- Buyout: An owner or outside buyer pays co-owners their shares.
- Mediation or family meeting: Neutral mediator can craft solutions like one owner remaining and buying out others over time.
- Listing the property and offering to distribute proceeds if some owners refuse to sign — sometimes the threat of a court action motivates agreement.
Bottom line: Yes — under Michigan law a co‑owner can force a sale through a partition action when co-owners cannot agree. The court will decide whether to divide the land or order a sale and will allocate proceeds after considering liens, contributions, and fairness. Because outcomes depend on ownership form, liens, and specific facts, consult a Michigan attorney to evaluate your position and options.
Helpful hints — what to do next
- Gather documents: deed, title report, mortgage statements, property tax bills, homeowner association rules, and any written agreements among owners.
- Confirm ownership type: Determine whether title is held as tenants in common, joint tenants, or another form.
- Get a market value estimate: A recent appraisal or broker price opinion helps evaluate buyout offers and whether in‑kind division is practical.
- Talk to co-owners: A written buyout offer or mediation may reach a faster, cheaper resolution than litigation.
- Budget for costs: Expect appraisal fees, filing fees, and attorney fees if you litigate. Compare those costs to potential proceeds from sale.
- Ask about liens: Check county records for mortgages or judgments that will be paid from sale proceeds.
- Consult a Michigan real estate attorney early: A lawyer can review title, explain likely outcomes, and help prepare or respond to a partition complaint.
- Consider tax consequences: Selling property or receiving a buyout can have income or capital gains tax effects — consult a tax advisor.
Disclaimer: This article provides general information about Michigan law and is not legal advice. For advice about your specific situation, contact a licensed Michigan attorney.