Minnesota: Forcing Sale of Shared Property Through a Partition Action — FAQ | Minnesota Partition Actions | FastCounsel
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Minnesota: Forcing Sale of Shared Property Through a Partition Action — FAQ

Partition Actions in Minnesota: How a Court Can Order the Sale of Shared Real Property

Quick answer: If co-owners refuse to buy out one another or to agree on dividing the property, you can ask a Minnesota court to resolve the dispute through a partition action. When physical division (partition in kind) is impractical or unfair, the court can order a sale and divide the proceeds among owners according to their ownership shares. See Minnesota Statutes, chapter 558 for the statutory rules: https://www.revisor.mn.gov/statutes/cite/558.

Detailed answer — how the process works under Minnesota law

1. Basis for a partition action

Any co-owner of real property in Minnesota (joint tenant, tenant in common, or other person with an ownership interest) may file a civil lawsuit called an action for partition asking the court to: (a) divide the property among owners (partition in kind), or (b) sell the property and divide the proceeds (partition by sale) if division is not practical. The statutory rules and procedures governing these actions are collected in Minnesota Statutes, chapter 558: Minn. Stat. ch. 558.

2. Filing the complaint and who must be involved

You start by filing a complaint for partition in the appropriate district court listing all known co-owners and anyone with a recorded interest or lien against the property (mortgagees, judgment creditors, etc.). The court requires proper service on those parties so they can participate. The complaint should describe the property, state each party’s claimed ownership share, and state whether you want a division in kind or sale.

3. Partition in kind vs. partition by sale

The court prefers to divide property physically when it can be done fairly (partition in kind). If the property cannot be equitably divided without serious prejudice to owners — for example, because it is a single-family house on one lot — the court will order a sale. The court evaluates practicalities and fairness when choosing between division and sale. See the statutory procedures at Minn. Stat. ch. 558.

4. What happens if co-owners won’t make buyout offers

If other co-owners decline to buy your interest or refuse to submit reasonable offers, the court can still resolve ownership by ordering a public sale. Typical steps include:

  • Appointment of viewers, referees, or commissioners to inspect and appraise the property and propose a division or sale procedure.
  • If sale is ordered, the court sets the terms (e.g., public auction, advertised sale, or sale by court-appointed commissioner) and ensures sale proceeds will cover liens and costs before distribution to owners.
  • The court collects and pays valid liens (mortgages, taxes, mechanic liens) from sale proceeds, then distributes the remainder to owners according to their ownership shares after crediting costs, advances, and equitable adjustments (for example, one owner’s payments for repairs or mortgage payments may be credited).

5. Practical legal tools the court uses

  • Commissioner or referee: The court can appoint a neutral person to value or sell the property and report back to the court.
  • Receivership: In some cases, the court can appoint a receiver to manage the property until sale.
  • Accounting claims: The court can address claims that one owner paid more than their share for mortgage, taxes, or repairs and may order adjustments in distribution.

6. Effect of mortgages and liens

Recorded liens and mortgages generally must be satisfied from sale proceeds. That means a sale will not free the new title from liens unless the sale pays them. A buyer at a court-ordered sale typically takes title free of co-owner claims, subject to existing recorded encumbrances that are paid from the proceeds.

7. Timing, costs, and outcomes

Partition suits can take months to over a year depending on complexity, disputes, and whether appeals occur. Court costs, appraisal fees, commissioner fees, and attorneys’ fees (if awarded) come out of property proceeds. The net sale price and allocation determine what each owner receives. If owners want to avoid a forced sale, negotiating a buyout or mediation early will be far cheaper and faster.

8. What evidence you need

Be prepared to provide deeds, title documents, mortgage statements, property tax records, evidence of payments (mortgage/taxes/repairs), and any written agreements among co-owners. Valuation evidence such as recent appraisals or market studies is also important when the court considers sale or division.

9. Why you should consider counsel

Partition law involves court procedures, title issues, lien priorities, and equitable credits. An attorney can draft the complaint properly, locate and serve all necessary parties, request appropriate relief, and present valuation and accounting claims effectively. This article is educational and not legal advice.

Helpful Hints

  • Start by reviewing your deed and any written co-ownership agreement to confirm ownership shares and any buyout terms.
  • Get a current market appraisal or broker price opinion before filing. Knowing the property value helps you assess settlement vs. litigation.
  • Preserve records of payments you made for mortgage, taxes, insurance, or repairs — the court may credit these amounts when dividing proceeds.
  • Consider mediation or neutral valuation before suing. Courts often encourage settlement and a negotiated buyout saves money and time.
  • If you proceed in court, include all potential claimants (mortgagees, lienholders) in your complaint to avoid delayed sales or distribution problems later.
  • Be realistic about costs: commission and court fees reduce sale proceeds; net recovery may be lower than expected.
  • Check tax consequences of sale or buyout (capital gains, basis adjustments) with a tax advisor before finalizing a sale.
  • Use the Minnesota statutes for primary guidance: Minnesota Statutes, chapter 558 (partition): https://www.revisor.mn.gov/statutes/cite/558.

Disclaimer: This information is educational and does not constitute legal advice. Laws change and every case turns on its facts. Consult a licensed Minnesota attorney to discuss your situation and options before taking legal action.

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.