Detailed Answer
If you and one or more co-owners share title to real property in Missouri and you want cash for your share without forcing a court-ordered partition sale, you have several practical options. Missouri law allows a co-owner to file a partition action if owners cannot agree, but that route is often slow and costly and can produce a below-market sale at public auction. See Missouri statutes on partition for the court process: RSMo Chapter 525 (Partition) and the opening section: RSMo §525.010.
Common non-litigation options (how to get paid your full share)
-
Voluntary buyout by the co-owner(s)
Co-owners negotiate a price for your percentage interest. Steps: order a current market appraisal; calculate your share; get the buyer’s financing or a cash payment; sign a written purchase agreement; record a deed transferring your interest and take a release of any claims. A buyout avoids court costs and gives you control over timing and price.
-
Financed buyout (refinance or new mortgage)
The co-owner(s) refinance the property or obtain a new mortgage to raise cash to pay you. This preserves ownership structure for the remaining owners and can be faster than selling the property. Require clear payoff terms, a deed transfer, and release of liability if you are on the original mortgage.
-
Sale to a third-party buyer (private sale)
The owners sell the property on the open market and split net proceeds by ownership share. You get an immediate cash distribution equal to your share. This can yield a higher price than a court sale but requires consensus on listing, pricing, and closing costs.
-
Owner-financed buyout (promissory note secured by the property)
Instead of cash up front, the buyer signs a promissory note payable to you, often secured by a mortgage or deed of trust on the buyer’s interest. This lets you receive full value over time. Use recorded security and consider a balloon payment, interest rate, and default remedies to protect your position.
-
Mediation or arbitration to set price and terms
Use a neutral mediator or arbitrator to break an impasse. A mediated agreement can produce a binding buyout formula or sale process. Mediation is confidential and typically cheaper than litigation.
-
Partition by agreement (court entry based on a consensual plan)
If you must involve the court, present a written agreement (for example, to sell and split proceeds or to allocate specific parcels to owners) and ask the court to approve or enter it. A consensual proposal often avoids an auction and lets owners control sale mechanics and distribution.
-
Lease the property for income while negotiating
Renting the property and splitting net income can buy time to negotiate a fair buyout or sale, reducing pressure to accept a low court-sale offer.
-
Sell your interest to an investor (subject to caution)
You can sell your fractional ownership to a third-party investor. Investors often pay less than fair market value because they face partition risks and management burdens. Use this only if you must get out fast and at a discount you accept.
Pros, cons, and practical tips
- Buyouts and private sales give more control and usually better net proceeds than court-ordered partition sales.
- Get at least one independent appraisal to support price negotiations or to document value in case of later dispute.
- Insist on written agreements: purchase/sale contracts, promissory notes, mortgages or deeds of trust, releases, and closing statements. Record any deed and lien releases promptly.
- Watch title and mortgage status: if you remain on a mortgage after transferring your deed, you may still be liable unless the lender releases you. Cleanly document mortgage payoffs and seek a lender-approved refinance when required.
- Mediation typically costs far less than litigation and can be ordered before a partition suit proceeds. Consider a lawyer who understands Missouri partition practice to draft settlement terms.
- If the other co-owner refuses to negotiate, be aware that a partition action under RSMo Chapter 525 allows a co-owner to ask the court to divide the property in kind or order sale, which may lead to an auction sale and court-appointed commissioner handling the sale.
Typical steps to implement a voluntary buyout or consensual sale
- Order a market appraisal and obtain a title search.
- Calculate your percentage share and proposed buyout amount (adjust for costs, liens, improvements).
- Negotiate terms: cash vs. financed payment, interest, schedule, security, closing costs.
- Have an attorney prepare or review the purchase agreement, deed, and any promissory note or mortgage.
- Close escrow, record deed and lien releases, and verify payoff of mortgages and liens.
- Keep tax consequences in mind—consult a CPA about capital gains, basis adjustments, and 1031 possibilities if investment property.
When you may still need the court
If co-owners refuse all reasonable settlement offers, one co-owner can file a partition action under Missouri law (RSMo Chapter 525). Court-driven partition can split the land physically (partition in kind) or order sale (often at public auction). Court costs, attorney fees, sale expenses, and the risk of a lower sale price make negotiated solutions preferable where possible. See: RSMo Chapter 525.
Next steps
Start with an appraisal and a calm, documented proposal to co-owners. If negotiations stall, suggest mediation before litigation. If you choose a buyout or owner financing, record all documents and obtain lien releases at closing. Because Missouri-specific procedural and title issues matter, consider a Missouri real estate attorney to draft documents and confirm your payoff and release language.
Disclaimer: This article explains general options under Missouri law and is not legal advice. It does not create an attorney-client relationship. For advice about your situation and to draft enforceable agreements, consult a licensed Missouri attorney.