Common options when co-owners (heirs) cannot agree about farmland in North Dakota
This FAQ-style article explains the typical legal pathways and practical steps heirs can use to divide or force the sale of jointly owned farmland under North Dakota law. It is written for readers with no legal background.
Detailed Answer
Overview — two broad routes
If heirs own farmland together and cannot reach agreement, two broad approaches exist:
- Private solutions: work out a voluntary division, a buyout, or a mediated settlement.
- Judicial solution: file a partition action in North Dakota district court to force a physical division (partition in kind) or a sale and division of proceeds (partition by sale).
1) Try informal, cooperative approaches first
These are usually faster, cheaper, and preserve family relationships.
- Buyout: one or more heirs can buy the others’ interests at an agreed price. Use a written purchase agreement and consider an independent appraisal.
- Divide the land by agreement: if the parcel can be split into reasonably equal parcels for each owner, document the new ownership and record deeds.
- Lease or management agreement: owners can agree that one heir will farm the land and pay rent or a distribution to the non-farming co-owners.
- Mediation or neutral valuation: a mediator or neutral appraiser can help set a price or allocation that all heirs accept.
2) Partition actions (court-ordered)
If heirs cannot agree, North Dakota law allows an interested co-owner to sue for partition in district court. The court has two primary tools:
- Partition in kind (physical division): the court divides the real property into distinct parcels so each co-owner receives a portion. This is preferred when the land can be divided without significant loss of value or utility.
- Partition by sale: if the court finds that dividing the property fairly is impractical, would cause great prejudice, or significantly reduce value, the court can order the property sold and the net proceeds divided among the owners.
These procedures and the court’s authority come from North Dakota’s partition statutes. For the statutory framework, see Chapter 32-17 of the North Dakota Century Code: https://www.legis.nd.gov/cencode/t32c17.html
What the court considers when choosing division versus sale
The court will look at practical and equitable factors such as:
- Whether the parcel can be physically divided without materially reducing its value (soil, water rights, buildings, road access).
- Parcel shape, size, and number of owners.
- Existing mortgages, liens, easements, conservation or government program restrictions.
- Economic reality — whether subdividing would render parts unworkable or greatly lower agricultural productivity.
How the sale is handled
If the court orders a sale, it may:
- Conduct a public sale (auction) or order a sale through a commissioner or other court-appointed officer.
- Order distribution of sale proceeds after paying liens, mortgages, court costs, and statutory expenses.
- Appoint a receiver to manage, lease, or preserve the property during litigation if immediate management is needed.
Practical consequences and costs
- Partition litigation takes time. Expect several months to years in complex cases.
- Costs include court filing fees, appraisal fees, attorney fees, title and closing costs, and potential sale commissions. These are typically paid from sale proceeds or allocated by the court.
- Tax consequences: capital gains, step-up in basis issues, estate tax planning, and farm program eligibility can all be affected. Consult a tax advisor before accepting a sale or buyout offer.
- Government programs and easements: if the farmland participates in federal farm programs, CRP, or has conservation easements, sale or division may be constrained.
Special ownership situations to watch for
- Tenants in common vs. joint tenants vs. life estates: the legal right to force a sale can vary depending on the specific ownership form.
- Mortgages and liens: creditors may have superior claims; proceeds from any sale will generally satisfy them first.
- Previous buy-sell agreements or wills: written agreements among heirs or terms in a will may limit partition rights or set a buyout formula.
Steps to take now (practical roadmap)
- Gather documents: deed(s), wills, trust instruments, mortgages, leases, easements, and farm program paperwork.
- Get an independent appraisal to know the market value and realistic division alternatives.
- Attempt a mediated settlement or buyout. Mediation often resolves disputes without court.
- If voluntary resolution fails, consult an attorney about filing a partition action in the appropriate North Dakota district court under the state partition statutes (see Chapter 32-17): https://www.legis.nd.gov/cencode/t32c17.html
- Discuss tax and program implications with a tax or farm-program advisor before finalizing any sale or transfer.
Where to read the law
North Dakota’s statutes that govern partition and the court’s powers are found in Chapter 32-17 of the North Dakota Century Code. The chapter explains procedures, notice, appointment of commissioners or receivers, and how proceeds are handled. See: https://www.legis.nd.gov/cencode/t32c17.html
When to talk to an attorney
Consider contacting a North Dakota attorney when any of these apply:
- Heirs cannot reach agreement after a reasonable mediation attempt.
- The property is encumbered by liens, mortgages, or complex easements.
- There are potential disputes about the validity of title, prior agreements, or estate documents.
- Tax consequences could be significant.
An attorney can explain the likely outcomes in your county, estimate litigation costs and timing, and help negotiate fair buyouts or settlements.
Quick note on statutory reference
North Dakota partition law is codified in the North Dakota Century Code. See Chapter 32-17 here: https://www.legis.nd.gov/cencode/t32c17.html
Helpful Hints
- Start with an appraisal before any negotiation—knowledge of value helps you negotiate fairly.
- Consider mediation early. Even one court-ordered mediation session can save time and money.
- Document any buyout or division agreement in writing and record deeds promptly.
- Review mortgages and liens before agreeing to a sale—creditors get paid first from sale proceeds.
- Check for federal farm program enrollment, CRP contracts, or conservation easements before dividing or selling; these can limit options.
- If you or other heirs are active farmers, explore lease arrangements or management agreements as an interim practical solution.
- Keep clear records of payments, improvements, and distributions—these can affect equitable adjustments in litigation.
- Ask about court-appointed receivers if property needs immediate management or protection during disputes.