Detailed Answer: Getting Your Share of Net Proceeds After a Nevada Partition Sale
Short answer: After a Nevada court orders a partition sale, the court confirms the sale, pays liens and authorized costs from the sale proceeds, and then distributes the remaining (net) proceeds to the co-owners according to the court’s distribution order—usually in proportion to each owner’s legal interest unless the court orders an adjustment. To actually receive your money you will need the court’s distribution order and the clerk’s handling of the funds; if the clerk refuses or there are disputes or unpaid liens, you may need to file a motion with the court or work with an attorney.
How partition sales work under Nevada law
Nevada’s partition statutes govern how joint owners can force a sale or division of real property when they cannot agree. Key rules and steps include:
- The partition action is filed in district court and the judge either physically divides the property (partition in kind) or orders a sale (partition by sale).
- If the court orders a sale, it will appoint a commissioner or authorize a public sale. The court supervises confirmation of the sale and distribution of proceeds.
- Sale proceeds are first applied to costs of sale, court-ordered expenses, and valid liens (mortgages, recorded judgments, tax liens) that attach to the property. Any remaining funds are the net proceeds to be distributed to the co-owners.
For statutory authority and detail see Nevada Revised Statutes, Chapter 40 (Partition): https://www.leg.state.nv.us/NRS/NRS-040.html.
Step-by-step: how to get your share of net proceeds
- Confirm the court’s distribution order. After confirmation of the sale the court will enter an order directing how the sale proceeds are to be applied and distributed. Obtain a certified copy of that order from the district court clerk.
- Review the accounting of proceeds. The court or the commissioner provides an account showing gross sale price, sale costs (advertising, commissioner’s fees, title/escrow fees, real estate commissions if any), court costs, and liens paid. Verify that deductions are correct and that liens shown are legitimate and satisfied.
- Verify lien priority and payoff amounts. Mortgages, recorded mechanics’ liens, and tax liens commonly have priority and must be paid out of proceeds. If you hold a lien or mortgage against the property, confirm the exact payoff amount and provide lien documentation to the clerk if requested.
- Make sure the clerk has distribution paperwork. The clerk will normally prepare checks or transfer instructions once the judgment is final and any appeal period has passed (or after appeal bond is posted). The clerk may require identification, a W‑9, or a signed receipt before releasing funds to an individual. Contact the district court clerk’s office to learn their specific procedures.
- Receive the funds or move for distribution. If the court has ordered distribution and the clerk refuses to disburse funds, you can file a motion to compel distribution or an order to show cause asking the judge to direct the clerk to pay you. If there are contested claims to the proceeds, the judge may hold a hearing to resolve disputes before releasing funds.
- Address tax reporting and record-keeping. Partition sale proceeds can have tax consequences. Keep copies of the court order, settlement statement, and any lien payoff documents. After distribution you may receive tax reporting forms—consult a tax advisor for how to report your share.
Common adjustments the court may make before distribution
The court has discretion to make equitable adjustments. Common adjustments include:
- Credits to co-owners who paid mortgages, taxes, or insurance for the property.
- Reimbursements for necessary repairs or improvements that preserved value.
- Offsets for waste, destruction, or wrongful occupancy by a co-owner.
What if you suspect errors or a dispute over your share?
– Ask the clerk for the sale accounting and copies of lien payoff documentation.
– Request a court hearing to obtain clarification or correction if the accounting appears incorrect.
– If someone is refusing to pay their portion or refuses to transfer funds, the court can enter a judgment and the prevailing party may use normal post-judgment collection procedures.
Practical example (hypothetical)
Three co-owners jointly own a Nevada house: A holds 50%, B 25%, and C 25%. The court orders a partition sale. The house sells for $300,000. After paying real estate commission ($18,000), sale costs and court costs ($2,000), and satisfying a mortgage payoff of $150,000, the net proceeds equal $130,000. Unless the court orders adjustments, A would receive $65,000, B $32,500, and C $32,500. If B had paid property taxes or made a large, court-allowed repair before sale, the court might credit B and reduce A’s share accordingly.
Where to look in Nevada law
Start with the Nevada Revised Statutes on partition actions: NRS Chapter 40 (Partition). That chapter describes procedures for partition, sale, appointment of commissioners, and related powers of the court.
Helpful Hints
- Keep copies of all deeds, mortgage statements, and lien releases. These documents prove the existence and amounts of interests and claims against proceeds.
- Get the court’s written distribution order before expecting payment; the clerk usually needs that order to disburse funds.
- Ask for a written accounting. The sale accounting shows exactly how the gross sale price became the net proceeds.
- Check for recorded liens before the sale. Liens recorded against the property generally attach to the proceeds and must be paid in order of priority.
- If you believe the distribution is unfair, ask the court for an equitable accounting or hearing—Nevada courts can adjust shares to address contributions or wrongs among co-owners.
- Be mindful of appeal periods. Opposing parties may delay distribution by filing timely appeals unless security or bond is posted as required by the court.
- Contact the district court clerk early to learn any local procedures for releasing funds (IDs, forms, or W‑9 required).
- Consider alternatives to partition sale before filing: negotiated buyouts, mediation, or sale by agreement often save cost and time.
Next steps: Obtain a copy of the court’s final sale confirmation and distribution order, review the sale accounting, confirm lien payoffs, and contact the district court clerk about how to collect your check or wire. If anything is unclear or contested, consider contacting a Nevada attorney experienced in real property and partition law to file a motion and protect your share.