Partition sale of co-owned property under Minnesota law

Detailed answer — how the process works and what to expect

This section explains, in plain language, what steps you can take to force a partition sale of real property that you co-own in Minnesota and what the court will consider. This is an overview to help you make informed choices. It is not legal advice.

1. Confirm who actually owns the property

Start by obtaining the current deed and any probate or estate paperwork. If the property transferred to you and your sibling when your father died, check whether title is held as:

tenants in common (each owner holds a separate share), or
joint tenants with right of survivorship (property automatically goes to the surviving joint tenant),
or if the estate still owns the property and title has not been transferred by the probate process.

If the probate estate still controls the property, you may need to resolve estate administration issues before or during a partition action. For general probate law, see Minnesota Statutes, Chapter 524: https://www.revisor.mn.gov/statutes/cite/524.

2. Try to resolve the matter without a lawsuit

Court action is costly and time-consuming. Before filing suit, try these options:

Negotiate a buyout: one owner pays the other’s fair share and takes full title.
Enter a partition agreement that specifies who keeps what or who lives in the house and under what terms.
Use mediation or facilitation with a neutral third party to reach a settlement.

3. When you file a partition action in Minnesota

If negotiation fails, Minnesota law provides a judicial remedy called a partition action. The partition statute and procedures are in Minnesota Statutes, Chapter 565: https://www.revisor.mn.gov/statutes/cite/565. A partition action generally follows these steps:

File a complaint: You file in the district court in the county where the property lies. The complaint must identify the property, the owners, and the relief sought (partition in kind or sale).
Service and response: The other co-owner(s) and any parties with recorded interests (liens, mortgages) must be served. They can answer, raise defenses, or assert claims (for example, a claim for unequal contribution or reimbursement).
Hearing and factual development: The court may order appraisals, inspections, and hearings to determine whether the property can be physically divided (partition in kind) or whether sale is necessary.
Partition in kind vs. partition by sale: If the court finds the property can be divided fairly, it may order a division of the land (partition in kind). If division is impractical or would materially prejudice owners, the court can order a sale and divide the proceeds. The partition chapter governs this process: Minn. Stat. § 565.01.
Appointment of a referee or commissioner: The court commonly appoints a referee/commissioner to manage sale or division, conduct the auction or sale, and report back to the court.
Distribution of proceeds: After paying liens, mortgages, sale costs, and allowable credits (for improvements or payments), the court divides the net proceeds according to each owner’s legal share. The court can account for unequal contributions or expenses that affected the property’s value.

4. What issues commonly arise in partition suits

Whether title actually vests in co-owners (probate issues).
Whether property can be physically divided without substantial loss of value.
Claims for credit or reimbursement for mortgage payments, repairs, or improvements by one co-owner.
Liens, mortgages, or other encumbrances that must be paid at sale.
Possible temporary orders (e.g., who may occupy the house and who must pay taxes, insurance, or mortgage payments) while the action proceeds.

5. Practical timeline and costs

Partition actions can take several months to over a year depending on complexity, motions, appraisals, and whether the case settles. Court costs, appraisal fees, referee/commissioner fees, and attorney fees can significantly reduce the proceeds. The court may allocate certain costs between the parties.

6. Tax and post-sale considerations

A sale can have federal and state tax consequences, such as capital gains tax, basis adjustments, and reporting obligations. Consult a tax advisor about the tax impact of any buyout or court-ordered sale.

7. Where to file and which statute governs

Bring the partition complaint in the district court for the county where the property is located. The partition procedures and remedies are in Minnesota Statutes, Chapter 565: https://www.revisor.mn.gov/statutes/cite/565. For the rule describing when partition may be ordered, see: Minn. Stat. § 565.01.

Helpful hints — practical steps to improve your chances and protect your position

Obtain a certified copy of the deed and the probate-file records, if any, from county offices.
Get a professional appraisal early so parties know market value and have a basis for offers.
Attempt a written buyout offer before filing suit. A reasonable buyout can save money and time.
Use mediation. Courts often encourage or require alternative dispute resolution in family/property disputes.
Keep records of mortgage payments, taxes, insurance, repairs, and improvements. The court may credit these amounts when dividing proceeds.
Consider the costs: legal fees, sale costs, and taxes will reduce what you receive from a sale.
Talk to a Minnesota real property attorney early. A lawyer can advise whether partition is the best option, draft the complaint, and handle court procedures.
Be realistic about occupation: if a sibling lives in the house, courts may permit occupancy for a period but will weigh rent, maintenance, and mortgage obligations.
Plan for post-sale logistics: where will occupants go, and how will proceeds be distributed and taxed?

Next steps

If you want to pursue a partition sale, the usual immediate steps are: (1) confirm title and probate status; (2) obtain an appraisal; (3) make a written buyout offer or request mediation; and (4) if no agreement, consult a Minnesota property attorney to prepare and file a partition complaint in the appropriate district court.

Disclaimer

This article is informational only and does not constitute legal advice. I am not a lawyer. Laws change and every situation has unique facts. Consult a licensed Minnesota attorney to get advice tailored to your case.