Detailed Answer
When two or more people co-own real estate in Missouri and cannot agree on sale details or sharing expenses, state law provides several paths to resolve disputes. You can try informal agreements, mediation, buy-outs or, if those fail, pursue a judicial partition action. Below is an overview of each option under Missouri law.
1. Informal Negotiation and Buy-Out
Start by discussing each co-owner’s goals. One party may wish to stay in the property while others want to sell. You can negotiate a cash buy-out: one owner pays fair market value (often based on an independent appraisal) to purchase another’s share. Put any agreement in writing to avoid later misunderstandings.
2. Mediation or Alternative Dispute Resolution
Mediation involves a neutral facilitator who helps co-owners reach a compromise on sale timing, listing price, cost sharing, or improvements. Missouri courts encourage mediation before costly litigation. See RSMo §435.440 (mediation rules).
3. Judicial Partition Action
If discussions or mediation stall, any co-owner can file a petition for partition in county circuit court. Under RSMo §512.020, the court may:
- Partition in Kind: Physically divide the property if practicable and fair.
- Partition by Sale: Order a public sale, then distribute net proceeds proportionally based on ownership interest.
Missouri courts favor partition in kind when it does not materially prejudice owners. If a partition in kind is impractical, the court orders a sale. See RSMo §512.090 (procedure for partition sale).
4. Cost Allocation and Credits for Improvements
During a partition action, the court allocates costs—such as appraisal fees, legal fees, and sale expenses—pro rata according to each party’s share. If one co-owner paid for major repairs or mortgage payments beyond their share, they may seek a credit. Missouri law allows the court to adjust distributions to reflect such contributions. See RSMo §512.020 (credit for advances or improvements).
5. Timing and Practical Considerations
Partition litigation can take several months to over a year depending on court schedules and the need for appraisals or surveys. Co-owners should weigh litigation costs against potential benefits of an agreed sale.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney to discuss your situation and options under Missouri law.
Helpful Hints
- Obtain an independent appraisal early to understand market value.
- Document all contributions (repairs, mortgage payments) to support credits in court.
- Consider mediation before filing a partition action to save time and costs.
- Review your co-ownership agreement, if one exists, for dispute resolution clauses.
- Keep co-owners informed of deadlines, hearings, and required filings.