Detailed Answer
When co-owners of real estate in Montana cannot agree on how to sell the property or share related costs, state law offers a clear path: a partition action. Under Mont. Code Ann. §§ 70-17-101 to 70-17-406, any joint owner may petition the district court for a partition. The court has two primary remedies:
- Partition in Kind: If the property can be divided without materially reducing its value—such as adjacent lots—the court may award separate shares to each owner.
- Partition by Sale: If physical division is impractical or would diminish value, the court orders a public sale and divides proceeds according to ownership percentages. The court will also allocate sale-related expenses (e.g., appraisal fees, auction costs) among co-owners based on their interests (Mont. Code Ann. § 70-17-406).
Before filing, Montana encourages alternative dispute resolution. Under Mont. Code Ann. § 27-5-104, the court may refer co-owners to mediation to negotiate cost sharing, sale timing, or valuation issues. Mediation often preserves relationships and reduces legal fees.
If one co-owner wants to buy out others, they may offer a cash settlement equal to each owner’s share. Co-owners may negotiate a buyout agreement at any time—often saving court and auction costs. If no agreement follows mediation or negotiation, the petitioning owner proceeds with a partition action.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed Montana attorney before taking legal action.
Helpful Hints
- Review your deed and ownership percentages before filing.
- Obtain a professional appraisal to establish fair market value.
- Consider mediation to reduce time and expense.
- Keep detailed records of any improvements and costs related to the property.
- Consult a Montana real estate attorney to review deadlines, court fees, and procedural requirements.