Disclaimer: This article is for informational purposes and does not constitute legal advice.
Detailed Answer
When co-owners in New Mexico cannot agree on sale logistics or cost sharing, state law provides several pathways. You can negotiate directly, explore mediation, or file a partition action in district court. Each option has pros and cons, costs, and timelines.
1. Negotiation and Mediation
Start by discussing concerns about listing price, sale procedures, and expense shares. If direct talks stall, hire a neutral mediator. Mediation offers a structured environment to reach a binding agreement without court involvement. New Mexico courts often encourage mediation under Rule 1-011 NMRA.
2. Partition Action
If mediation fails, either co-owner may file a partition suit in district court. Under Section 42-5-1, NMSA 1978, you can seek a division of the property (partition in kind) or, if division is impractical, a court-ordered sale.
Once the court orders sale, it follows procedures in Section 42-6-1, NMSA 1978. A referee or commissioner handles listing, sale negotiations, and closing. Net proceeds distribute according to each owner’s share.
3. Receiver Appointment
During a partition action, you or the other co-owner can ask the court to appoint a receiver. Under Section 42-11-1, NMSA 1978, a receiver manages property upkeep and expenses until sale or partition completes. This protects value and ensures an equitable division of costs.
4. Cost Allocation
In mediation or court, co-owners share maintenance, taxes, and sale costs proportionally. If one owner covers more than their share, the court usually orders reimbursement from the other party’s portion of sale proceeds.
5. Timeline and Expenses
A partition action can take several months. Expect court fees, referee or receiver fees, appraisal charges, and possible attorney fees. Weigh these costs against potential benefits of a faster private sale.
Helpful Hints
- Gather key documents: deed, tax records, appraisals.
- Try informal meetings before pursuing court.
- Understand each party’s ownership percentage.
- Keep careful records of contributions to taxes, repairs, and maintenance.
- Discuss fee structures and timelines with a real estate attorney early.
- Consider market conditions: delays can affect sales price.