Dividing or Forcing Sale of Co-Owned Farmland in Oregon

Detailed Answer

Short overview: When co-owners cannot agree about farmland, Oregon law allows a co-owner to ask the circuit court to divide the land (partition in kind) or force its sale (partition by sale). The court will try to divide property physically if fair division is practical; if not, it will order a sale and divide the proceeds after paying liens and costs. The process is governed by Oregon’s partition statutes (see ORS Chapter 105).

1. Confirm ownership and gather documents

Start by collecting deeds, recorded plats, title reports, mortgages, leases (tenant farmers), property tax records, conservation easement documents, and any written agreements among the owners. These documents establish who has an ownership interest, the size of each share, and whether lenders or easement holders must be joined in court.

2. Try to resolve the dispute without court

Courts prefer parties to settle. Typical options include:

• Negotiated buyout of one co-owner by another.
• Agreement to divide the property by drawing new boundary lines or swapping parcels.
• Mediation or arbitration to reach a practical farm-management solution (shared operation, leasing, or sale).
• Executing a partition agreement that specifies how division or sale will occur.

3. Filing a partition action in circuit court

If voluntary agreement fails, any co-owner may file a partition complaint in the Oregon circuit court where the land lies. Oregon’s partition law is in ORS Chapter 105 (see: ORS Chapter 105).

Key points about the complaint:

• Name all co-owners as defendants and any lienholders or parties with recorded interests.
• State the type of relief sought — partition in kind (physical division) or partition by sale (forced sale of the whole parcel).
• Ask the court to appoint commissioners/referees to value and, if needed, divide or sell the property.

4. Court procedures after filing

Typical procedural steps include:

• Service of process on co-owners and parties in interest.
• Answers and potential counterclaims (for example, claims for contribution for improvements or payment of rents).
• Inspection, appraisal, survey, and testimony to determine whether partition in kind is practical without unfairness or prejudice to the owners.
• Appointment of commissioners or a referee to carry out division or sale and to prepare reports for the court.

Oregon courts prefer partition in kind when it is practicable and equitable. If the court finds physical division would materially impair value or is impractical (for example, one contiguous field cannot be split without destroying productive capacity or access), the court may order partition by sale.

5. Partition in kind (division)

If a division is ordered, the court or appointed commissioners will:

• Hire surveyors and appraisers as necessary.
• Divide the land into parcels that reflect each owner’s share and equitably allocate improvements, road access, water rights, and easements.
• Resolve disputes about contributions (some owners may get credit for improvements or payments of mortgage interest or taxes).

After division, the court signs orders and new deeds are recorded to transfer the divided parcels to the owners.

6. Partition by sale (forced sale)

If sale is ordered, the court will authorize a sale process (often supervised by a commissioner or the sheriff). Expect:

• Public notice and timeline for the sale.
• Requirements for appraisal, advertising, and minimum upset bids (procedures vary by case and judge).
• Opportunity for owners to bid at sale; sometimes owners buy the property and then work out new arrangements.
• Payment of mortgage lenders and other recorded liens from sale proceeds, payment of court costs and fees, and distribution of net proceeds according to ownership shares and court adjustments (for contributions or debts).

7. Expenses, credits, and accounting

The court can require an accounting of rents, crops, taxes, and expenses. If one co-owner paid more than their share for mortgage, taxes, repairs, or seeding, the court can adjust distributions to reflect equitable contributions. Lenders and lienholders must be satisfied before owners receive proceeds.

8. Practical issues specific to farmland

• Timing: Try to avoid sale or division during critical farming seasons; courts may consider crop cycles and tenants’ rights.
• Tenants and leaseholds: Active farm tenants or sharecroppers create additional rights that must be protected or terminated properly.
• Access and water rights: Dividing acreage must preserve legal access, irrigation, and water rights; losing access can destroy value.
• Conservation easements or farm-use tax programs can restrict division or sale — verify any recorded restrictions before expecting a clean partition.

9. Timeline and likely costs

Partition suits can take months to over a year depending on complexity, number of parties, disputes over valuation, and need for surveyors or environmental review. Costs include filing fees, attorneys’ fees, appraisals, surveys, commissioner fees, advertising for sale, and potential partner buyouts.

10. Alternatives and risk-reduction strategies

• Mediation to preserve farm value and working relationships.
• Buyout or settlement agreements to avoid court costs.
• Sale by mutual agreement on the open market for better price control than a court-ordered sale.
• Use of a partition agreement with clear rules for future disputes (co-ownership agreements).

Statutes and resources

Primary Oregon statute on partition actions: ORS Chapter 105. See the state code here: https://www.oregonlegislature.gov/bills_laws/ors/ors105.html.

For practical court forms and local procedures, consult the Oregon Judicial Department and the circuit court clerk in the county where the land is located.

When to hire an attorney

Consider retained counsel when:

• Multiple owners or lenders exist.
• There are leases, tenants, or complex easements.
• Significant disagreement exists about value or contributions.
• You need to protect farm operations, timing of harvests, or water rights.

Disclaimer: This article explains general Oregon law and common steps for dividing or forcing the sale of co-owned farmland. It is educational only and is not legal advice. Consult a licensed Oregon attorney to apply this information to your specific situation.