Michigan: How to Divide or Force the Sale of Co-Owned Farmland | Michigan Partition Actions | FastCounsel
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Michigan: How to Divide or Force the Sale of Co-Owned Farmland

Can co-owners divide or force the sale of farmland? A practical guide under Michigan law

Detailed answer — What typically happens and the legal steps in Michigan

When two or more people own farmland together and they cannot agree about possession, use, or sale, Michigan law allows a co-owner to ask a court to divide the land or order its sale. This court process is called a partition action. Below is a clear, step-by-step explanation of how this usually works, what options co-owners have before going to court, and what to expect if the court becomes involved.

1) Confirm how the property is owned

Start by checking the deed and title to learn whether owners hold the property as:

  • Tenants in common — each owner has an undivided fractional interest that can be different in size and passed to heirs.
  • Joint tenants with right of survivorship — ownership passes to surviving joint tenants on death.

Most contested farmland co-ownerships are tenancy in common; either type can lead to a partition action, though remedies and outcomes can differ depending on title language and any buy-sell agreements.

2) Try voluntary solutions before litigation

Court is not the only route. Courts expect co-owners to make reasonable efforts to resolve disputes first. Common voluntary steps:

  • Negotiate a buyout (one owner buys out the others using an appraisal to set price).
  • Agree on an in-kind division (physically divide the land) if feasible without making residual parcels unusable.
  • Sell on the open market by mutual agreement and split net proceeds.
  • Use mediation or a neutral appraiser to value the property and negotiate terms.

3) When and how to file a partition action in Michigan

If voluntary measures fail, a co-owner may file a complaint for partition in the circuit court for the county where the land is located. The complaint should identify the property, the ownership interests, and the relief sought (division in kind or sale). The statutes governing partition actions begin at MCL 600.2801 and continue through the partition provisions (look for MCL 600.2801 et seq.).

4) Court procedures and typical timeline

  1. Service and response: The complaint is served on co-owners. They may answer or raise defenses such as an agreement that bars partition.
  2. Pretrial steps: The court may order exchanges of documents, depositions, or mediation. Parties often present appraisals, surveys, leases, crop-share agreements, and evidence of improvements or expenses.
  3. Survey and appraisal: The court or parties usually obtain a current survey and professional appraisal to determine boundaries and fair market value.
  4. Commissioners or referee: If the court allows partition in kind, it may appoint commissioners (or a referee) to divide the property physically among owners in a way that is fair and practical. If dividing in kind would be inequitable or impractical, the court can order sale.
  5. Sale process: For a forced sale, the court will typically order a public sale (often at auction or by sealed bid) under specified procedures. The court will approve sale terms and ultimately confirm the sale and direct distribution of proceeds after paying liens, costs, and any awarded expenses.
  6. Distribution: After sale and payment of liens, taxes, commissions, and court-ordered costs or attorney fees, the net proceeds are divided among owners according to their ownership shares.

5) What the court considers when choosing division in kind versus sale

Courts weigh several factors before ordering a sale rather than a physical division (in kind):

  • Whether a practical and equitable division is possible without impairing value.
  • Whether dividing would leave fragments that are unusable for farming or substantially reduce overall value.
  • Economic fairness — whether owners’ contributions (improvements, maintenance) justify adjustments in shares.
  • Existing encumbrances, easements, conservation restrictions, or leases that affect marketability.

6) Costs, fees, and potential payment awards

Partition cases can be costly. Typical expenses include court filing fees, appraisal and survey costs, commissioner or referee fees, auction costs, and attorney fees. The court can allocate costs and may award some fees to a prevailing party if statute or equity supports it. Keep in mind that costs are usually paid from sale proceeds or by the parties as directed by the court.

7) Special considerations for farmland

  • Active farm operations, tenant farmers, and crop-share agreements complicate partition; leases and tenant rights may survive a sale through the remainder of lease terms.
  • Conservation easements, agricultural preservation programs, or special assessment (farmland tax) status can limit options and affect valuation.
  • Seasons and crop cycles can affect timing and sale value; courts may consider agricultural realities when scheduling sale or division.

8) Timeline and likely duration

Simple, uncontested partitions (where parties agree to division) may resolve in a few months. Contested matters with appraisals, surveys, and a court-ordered sale can take a year or longer. Complex disputes (multiple parties, environmental concerns, mortgages, farm leases) may extend further.

Where to find the governing Michigan law

The primary statutory source for partition actions in Michigan is the Michigan Compiled Laws, chapter on partition actions and related civil procedure. See the partition statute starting at MCL 600.2801 (and the provisions that follow). For detailed procedural rules, consult the local circuit court rules where the property is located.

Important: This article explains common steps and considerations but does not replace legal advice tailored to your situation. Consult a Michigan attorney experienced in real property and farm cases to protect your rights.

Helpful hints — Practical tips to prepare and improve your outcome

  • Gather documents before meeting an attorney: deed(s), title report, mortgage and lien records, survey (if available), farm leases, crop-share agreements, tax records, insurance, and records of improvements and expenses.
  • Get a professional appraisal early if you’re considering a buyout; this supports a fair negotiation.
  • Consider mediation or arbitration to save time and money; courts often look favorably on settlement attempts.
  • If you want to keep the farm, prepare a realistic buyout proposal or financing plan to present to co-owners.
  • Check for conservation easements or agricultural program restrictions that may limit marketability or division options.
  • Talk to a local farmland lender before negotiating a buyout to understand financing possibilities and timing constraints.
  • Ask your attorney about potential tax consequences from a sale or partition — capital gains, depreciation recapture, and property tax reassessment can all apply.
  • Be realistic about costs: partition litigation plus sale expenses can substantially reduce net proceeds compared to a voluntary sale.
  • Document improvements and contributions: records of work done, materials paid for, or expenses covered can be used to seek adjustments to shares in court.
  • Find an attorney with experience in Michigan real property and farm matters; ask about prior partition cases and typical timelines.

Resources: For the statutory text, search the Michigan Compiled Laws at the Michigan Legislature website (see https://www.legislature.mi.gov/) and look for MCL 600.2801 et seq. Your local circuit court clerk can explain filing requirements and fees for a partition action in the county where the farmland is located.

Disclaimer: This content is educational only and is not legal advice. It does not create an attorney-client relationship. For advice about a particular situation, consult a licensed Michigan attorney who practices real property law.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.