How can I get my share of the net proceeds after the partition sale of a co-owned house? (MS)

Detailed answer

This article explains how an owner of a co-owned house can receive their share of the net proceeds after a court-ordered partition sale in Mississippi. It walks through the typical steps under Mississippi practice, what reduces the net proceeds, how distribution is calculated, and practical steps you can take to get paid. This is an overview for education only and not legal advice.

Which court handles a partition?

In Mississippi, partition actions are typically filed in chancery court (equity court) when parties seek sale of real property that co-owners cannot divide by agreement. You can find information about Mississippi’s courts at the Mississippi Judiciary site: https://courts.ms.gov/. For statutory text or to search state code terms like “partition,” use the Mississippi Legislature website: https://www.mslegislature.gov/.

Step-by-step: How the sale and distribution process usually works

1. File a partition petition or answer one.

   A co-owner (plaintiff) files a petition asking the court to divide the property or order a sale if division in kind is impractical. Other co-owners are served and can respond or file counterclaims.

2. Court determines type of partition.

   The court will decide whether to partition the property in kind (physically divide it) or order a sale (partition by sale). Courts often order a sale when dividing the land physically is impractical or unfair.

3. Appointment of a commissioner or sale officer.

   The court typically appoints a commissioner, master, or other officer to conduct the sale, advertise it, receive bids, and report the sale to the court for confirmation.

4. Sale, confirmation, and accounting.

   After the sale is conducted, the commissioner files a report showing gross sale proceeds, sale costs (advertising, commissioner’s fees, court costs), and any bids or upset bids. The court holds a confirmation hearing. Once confirmed, the court orders distribution of the net proceeds.

5. Payment of liens, mortgages, and taxes.

   Before owners receive shares, secured creditors (mortgages, tax liens) and certain priority claims are paid from the sale proceeds. The commissioner or clerk usually uses the sale funds to satisfy these liens as required by law and the court’s order.

6. Calculation of each owner’s share.

   Co-owners receive shares based on their ownership interest (title, deed, or equitable contribution). The court or commissioner prepares an accounting showing how the net proceeds (gross sale price minus sale expenses and paid liens) are divided among owners. If owners have unequal contributions to purchase price, mortgages, or improvements, they may present claims for adjustment; the court decides equity adjustments.

7. Clerk disburses funds when court orders distribution.

   After the court signs a decree ordering distribution, the clerk or commissioner issues checks or directs payment to the entitled owners. You typically receive your share after liens, costs, and any court-approved adjustments are paid.

Common items deducted from gross sale price before you get paid

• Outstanding mortgages and recorded liens (they are paid first in order of priority).
• Property taxes and special assessments due at sale.
• Sale costs: advertising, auctioneer/commissioner fees, court costs, title search and closing costs.
• Costs to make the property marketable (court-authorized repairs or clean-up).
• Any court-ordered attorney fees or equitable adjustments the court awards under the facts of the case.

How to make sure you actually get your money

• Keep clear documentation of your ownership share: deed(s), title report, and any written agreements allocating ownership percentages.
• Document contributions you made (mortgage payments, property taxes, major repairs/improvements) if you plan to ask the court for an adjustment in distribution.
• Monitor the court file. Make sure you receive notice of hearings and the commissioner’s sale report and confirmation hearing.
• If liens exist, verify whether they were paid at closing. Request copies of lien payoffs and the commissioner’s accounting from the clerk.
• After the court signs a distribution order, follow clerk procedures for collecting your funds—provide any required identity verification or tax forms the clerk may request.

What to do if you do not receive your share

• Request the court clerk’s file and the commissioner’s accounting. The file should show the disbursement. Review for errors in arithmetic or omitted claims.
• If the clerk did not distribute funds as ordered, file a motion in the same case asking the court to enforce the distribution order or to clarify how proceeds were disbursed.
• If another co-owner received funds improperly (e.g., accepted a personal payment instead of distribution through the court), ask the court for relief—return of funds, surcharge or contempt if warranted.
• Consider reopening the account or filing a supplemental petition if you discover an undisclosed lien or creditor claim that changed the net proceeds after distribution.

Practical considerations and tips

• Secure any tax documents you’ll need: courts or clerks may require taxpayer identification (W-9) before issuing checks; sale may trigger tax reporting (Form 1099-S).
• Understand liens have priority. Even if you are an owner, a superior mortgage holder can remove funds from the sale proceeds before owners get paid.
• Negotiation may be faster. Co-owners can avoid court costs by agreeing on sale terms, a private sale, or buyout; then file a consent decree to clear title and distribute proceeds.
• Keep realistic expectations about timing—partition litigation and confirming a sale can take months, sometimes longer if there are disputes over liens or ownership shares.

Where to find Mississippi rules and statutes

For official rules, filings, and local procedures, consult the Mississippi Judiciary site: https://courts.ms.gov/. For statutory research or to locate Mississippi code sections on property and court procedure, visit the Mississippi Legislature site: https://www.mslegislature.gov/ and search for “partition” or terms like “sale of real estate” and “chancery.”

Helpful Hints

• Gather title documents early: deed, mortgage statements, tax bills, and any written ownership agreements.
• Confirm whether the sale will happen via public auction or private sale—this affects timelines and funds availability.
• Expect secured creditors to be paid first; contact mortgage holders to confirm payoff amounts before sale.
• Ask the commissioner or clerk for a written accounting showing gross sale price, itemized deductions, and each owner’s net share.
• If you are owed reimbursement for payments you made (mortgage, taxes, improvements), document and present those claims to the court with receipts and bank records.
• Consider settlement discussions with co-owners before sale—a negotiated buyout or agreed private sale can be faster and less costly.
• If the case is contested or involves significant money, consult a Mississippi attorney experienced in chancery/real property matters to protect your rights and speed distribution.

Disclaimer: This information is educational only and not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Mississippi attorney who can evaluate the facts and local court practice.