Detailed Answer
If you own real property in Nebraska together with two other co-owners and you cannot reach agreement about selling, the primary legal remedy is a partition action in court. A partition action asks the court to divide ownership so each co-owner receives their share — either by dividing the land physically (partition in kind) or by selling the property and distributing the proceeds (partition by sale). Courts prefer partition in kind when it is practical; when the property cannot be fairly divided, the court will order a sale.
Who may file and where to file
Any co-owner with an ownership interest in the real estate may file a partition lawsuit. In Nebraska, you typically file the action in the district court for the county where the property is located. The suit names all co-owners and any parties who hold recorded interests (for example, mortgage lenders or lienholders).
Typical court process
- File complaint: The plaintiff (the co-owner seeking partition) files a complaint asking the court to order either a division of the property or a sale and to determine each party’s share.
- Service and answers: All co-owners and interested parties are served and may respond. Parties can raise defenses, assert offsets (for expenses paid), or claim unequal contributions.
- Appointment of commissioner or master: If the court orders a sale or needs a factual report, it may appoint a commissioner (or special master) to value the property, supervise a sale, or recommend a way to divide the property.
- Valuation and sale or division: The court may order an appraisal, hold hearings, and then order either partition in kind (dividing the land) or partition by sale, often through a public auction or broker sale supervised by the court or appointed commissioner.
- Distribution of proceeds: After sale and payment of liens, costs, and fees, the court directs distribution of the remaining proceeds among owners according to their ownership shares, with adjustments for contributions, improvements, or liens as the court determines equitable.
How ownership shares and contributions are handled
Ownership shares normally follow how title is recorded (for example, equal thirds if the deed lists three owners without other language). However, courts can adjust distributions based on evidence of unequal contributions to purchase price, mortgage payments, taxes, insurance, or improvements if one co-owner can prove inequitable contributions. Keep records (deeds, closing statements, cancelled checks, bank records, tax bills, receipts for repairs or improvements) to support your claim.
Impact of mortgages, liens, and creditors
Recorded mortgages and liens generally survive a partition sale. A partition action often requires paying off or otherwise addressing liens from the sale proceeds; a mortgage holder may be joined in the suit. Unpaid taxes or HOA assessments may be paid from sale proceeds before distribution to owners.
Possible defenses and delays
Co-owners can object to sale timing, dispute valuation, claim the property can be reasonably divided, or seek offsets for contributions. These disputes can lengthen the process. Courts also have discretion to deny partition in kind if division would be impractical or inequitable.
Costs, timing, and likely outcomes
Partition actions involve filing fees, possible appraisal costs, attorney fees, costs for a commissioner or broker, and court time. The timeline varies: simple cases may conclude in months; contested matters with valuation disputes or appeals can take a year or longer. If the court orders a sale, expect the net proceeds to be divided after payment of liens, taxes, costs, and any equitable adjustments.
Alternatives to court
- Negotiation: Offer to buy out the other co-owners or sell your share to them.
- Mediation: A neutral mediator can help parties reach a sale or buyout agreement and avoid litigation costs.
- Partition agreement: Co-owners can sign a written agreement describing how a sale or division will occur and how proceeds will be split.
Practical steps to prepare
- Collect title documents: deed, chain of title, mortgage records.
- Gather financial records: proof of payments for mortgage, taxes, insurance, repairs, and improvements.
- Get a market appraisal or broker opinion to understand likely sale value.
- Talk to the other owners about mediation or buyout offers before filing.
- Consult a Nebraska real estate attorney to evaluate the strength of your case, required pleadings, and likely costs.
Relevant Nebraska law resources
State statutes and court rules govern partition procedures and remedies. For the Nebraska Revised Statutes and to search for partition-related provisions, see the Nebraska Legislature’s statutes page: https://nebraskalegislature.gov/laws/statutes.php. For questions about court process or to locate the district court in the county where the property sits, see the Nebraska Judicial Branch: https://supremecourt.nebraska.gov.
When to contact an attorney
Consider consulting a Nebraska real estate lawyer if: you plan to file a partition action, anticipate disputes about contributions or liens, or need help negotiating a buyout or mediated agreement. An attorney can prepare pleadings, represent you in hearings, and advise about possible offsets and how to document them.
Disclaimer: This article explains general information about Nebraska law and is not legal advice. It does not create an attorney-client relationship. For advice tailored to your situation, consult a licensed Nebraska attorney.
Helpful Hints
- Document everything: keep receipts, bank records, tax bills, and proof of mortgage payments to support claims for contribution or reimbursement.
- Start with negotiation: a voluntary buyout or agreed sale will usually cost far less than court litigation.
- Obtain a professional appraisal early so you and the other owners understand value and avoid low settlement offers.
- Consider mediation before filing; courts often favor settlements and will accept mediated agreements.
- Include lenders and lienholders in any discussions; unpaid liens can block clean distribution of sale proceeds.
- Expect the court to order a sale if the land can’t be fairly divided; prepare for public sale procedures and costs.
- Check title carefully: clarify how title is held (tenants in common vs. joint tenancy) because ownership form affects how interests are treated.
- Ask your attorney about possible attorney fees recovery — in some equitable circumstances, courts may allocate costs or fees among parties.
- If you are occupying the property, understand that occupying co-owners may be entitled to credit for use or expenses the court finds equitable.
- Use the Nebraska Judicial Branch and Nebraska Legislature websites to confirm local filing procedures and statute language.