Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When co-owners of real property in Oregon cannot agree on sale logistics or how to share costs, several legal pathways can break the deadlock. Below are the primary options under Oregon law:
1. Negotiation or Mediation
Before filing a lawsuit, co-owners can attempt negotiation or engage a neutral mediator. Mediation allows each party to voice concerns over timing, pricing, commissions and expense reimbursement. A written settlement in mediation can become binding and prevent further litigation.
2. Buyout Agreement
One co-owner may offer to buy out the interest of the other(s) at a fair market value. Parties often obtain a neutral appraisal. A signed buyout agreement can resolve logistics and cost-sharing issues without court involvement.
3. Partition Action Under ORS Chapter 105
If informal methods fail, any co-owner can file a partition action in Oregon circuit court. Under Oregon Revised Statutes § 105.155, the court can order a division of property (“partition in kind”) or, if in‐kind division is impractical, order a sale of the entire property and distribute net proceeds among owners according to their ownership shares.
• Partition in kind—Each owner receives a physically divided share of the parcel if feasible.
• Partition by sale—The court appoints a referee to sell the property at auction or private sale. Net proceeds, after paying commissions and liens, are distributed per ownership interests.
Statutory reference: ORS 105.155.
4. Expense Accounting and Reimbursement
Co-owners typically share recurring expenses (taxes, insurance, maintenance) in proportion to their ownership. If one party pays more than their share, they can seek reimbursement through the partition action or a separate accounting lawsuit. The court can enforce equitable contribution.
Helpful Hints
- Keep transparent records of all expenses, payments and repair invoices.
- Obtain a neutral professional appraisal to establish fair market value.
- Consider adding a buy-sell clause in future co-ownership agreements to handle disputes.
- Explore mediation before litigation to save time and fees.
- Consult a real estate attorney for procedural guidance if filing a partition action.