Detailed Answer
When co-owners of real property in Missouri—such as tenants in common or joint tenants—cannot agree on a buyout price, they have several paths to resolve their dispute:
1. Voluntary Agreement and Appraisal
The simplest solution is to jointly hire a licensed appraiser to determine fair market value. Once you have an impartial appraisal, you can negotiate a buyout price based on that figure. You may also agree in advance to follow the appraiser’s valuation or use an agreed formula (for example, average of two appraisals).
2. Alternative Dispute Resolution (ADR)
If direct negotiation stalls, consider mediation or arbitration. A neutral mediator helps you craft a settlement. Arbitration lets an arbitrator set a binding buyout price. ADR often saves time and legal costs compared to court proceedings.
3. Partition Action in Missouri Courts
If voluntary methods fail, any co-owner can file a partition action in the circuit court under Missouri’s partition statutes. Missouri law provides two main outcomes:
- Partition in Kind: The court physically divides the property among co-owners. This works when the land can split without unfairly reducing value.
- Partition by Sale: If dividing the land isn’t practical, the court orders a public sale. After payment of expenses and liens, proceeds distribute among co-owners according to their ownership shares.
Missouri’s partition statute outlines the process, appointment of commissioners, and sale procedures: Mo. Rev. Stat. § 512.010.
4. Court-Ordered Buyout Using Sale Proceeds
In some cases, a co-owner may bid at the court-ordered sale and use sale proceeds—or private financing—to cover the other co-owner’s share. The court will confirm any sale and distribute net proceeds accordingly.
5. Costs and Timeline
Partition actions can take several months to over a year. Courts charge filing fees, and you’ll incur attorney and commissioner costs. ADR typically moves faster and costs less.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed Missouri attorney to discuss your specific situation.
Helpful Hints
- Always obtain at least one independent appraisal to set a fair baseline value.
- Include a buyout or shotgun clause in your ownership agreement to avoid future disputes.
- Consider mediation before resorting to court; it preserves relationships and cuts costs.
- If you file a partition action, ask the court for clear deadlines to avoid unnecessary delays.
- Keep detailed financial records and proof of improvements; they may affect your share of proceeds.