Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When two or more people own real estate together in New Hampshire and cannot agree on sale logistics or cost sharing, they face a co-ownership dispute. New Hampshire law provides several avenues to resolve such disagreements.
1. Voluntary Resolution
Before heading to court, co-owners should attempt negotiation or mediation. A neutral mediator can help clarify each party’s contributions, interests and desired outcomes. You might agree on:
- A buyout: One co-owner pays fair market value for the other’s share.
- Sale terms: A jointly agreed listing price, real estate commission and expense allocation.
- Maintenance cost sharing: A formula based on ownership percentage or usage.
2. Partition Action in Superior Court
If voluntary methods fail, New Hampshire RSA 547:1 allows any co-owner to file a partition action in the Superior Court. The court can order:
- Partition in Kind: Physical division of the property if it can be fairly subdivided.
- Partition by Sale: Court-ordered sale of the entire property with proceeds divided among co-owners according to their ownership interests.
See NH RSA 547:1 (Partition Generally). The court weighs factors like property type, value and fairness. Once the order issues, a commissioner oversees the sale or division.
3. Equitable Accounting and Contribution Claims
Co-owners who paid more than their share of expenses (mortgage, taxes, insurance, repairs) may file a claim for contribution. The court can order an accounting to determine who owes what. Contribution claims often accompany partition actions.
4. Appointment of a Receiver
In complex cases, a party may ask the court to appoint a receiver to manage the property. A receiver collects rents, pays expenses and preserves the asset’s value pending final resolution.
5. Alternative Dispute Resolution (ADR)
New Hampshire courts encourage ADR processes. Binding arbitration can replace a trial, with an arbitrator issuing a final decision on sale logistics, cost sharing and any money owed between parties.
Key Steps to Take
- Review your deed and ownership percentages.
- Gather records of all expenses and improvements.
- Attempt informal negotiation or mediation.
- Consult an attorney about filing a partition action or contribution claim.
Helpful Hints
- Document Contributions: Keep receipts for taxes, repairs and improvements.
- Understand Ownership Types: Joint tenants with right of survivorship differ from tenants in common.
- Get an Appraisal: A professional valuation supports buyout offers and court sales.
- Consider Timing: Court-ordered sales can take months, so plan for interim expense responsibilities.
- Explore ADR Early: Mediation or arbitration often saves time and legal fees.