Dividing or Forcing Sale of Co-Owned Farmland: What to Know under Pennsylvania Law
Disclaimer: This article is educational only and is not legal advice. Consult a licensed Pennsylvania attorney about your specific situation.
Detailed Answer — How heirs can divide or force a sale of co-owned farmland in Pennsylvania
When multiple heirs own farmland together and they cannot agree on what to do, you have two basic paths: (1) reach an out-of-court solution (voluntary division, buyout, or negotiated sale), or (2) ask a court to resolve the dispute through a partition action. Below I explain the common options, how courts handle partition disputes in Pennsylvania, and practical steps to prepare.
Key legal concepts
- Tenancy in common: Heirs who inherit property usually hold it as tenants in common — each owner has a separate share that can be sold or transferred.
- Partition: A legal process that ends co-ownership by physically dividing the property (partition in kind) or selling it and dividing the proceeds (partition by sale).
- Where to file: Partition disputes are filed in the Court of Common Pleas in the county where the land sits. For general Pennsylvania courts information see the Pennsylvania Unified Judicial System: https://www.pacourts.us/.
Out-of-court options (recommended first)
Courts prefer parties resolve disagreements themselves. Consider these first because they cost less and preserve relationships.
- Negotiate a buyout: One or more heirs buy the others’ shares at an agreed price (often based on an appraisal). Put the agreement in writing and record any deed changes.
- Sell to a third party by agreement: All co-owners agree to list and sell the farm and split proceeds according to ownership shares.
- Partition agreement: Owners can agree to divide the land physically. This often requires a survey and may need additional funds to equalize unequal values.
- Mediation: Use a mediator experienced in real property or farm disputes. Mediation is voluntary and often faster and cheaper than litigation.
- Family buy-sell terms: Consider structured buyouts (installments), or letting a family member farm while paying rent to non-farming heirs.
When negotiation fails: Court-ordered partition
If heirs cannot reach agreement, any co-owner usually may file a partition action in the Court of Common Pleas where the property is located. The court’s typical remedies are:
- Partition in kind: The court divides the land so each owner receives a separate parcel roughly equal to their share. Courts will order this only when physical division is practical without causing substantial loss in value or harming the farm operations.
- Partition by sale: If the court finds the property cannot reasonably be divided (common for farms because of size, configuration, access, or shared infrastructure), it will order a sale and divide the proceeds after costs, liens, and taxes.
What the court considers
Court factors include:
- Whether the land can be divided without unreasonable injury to its value or to co-owners’ interests.
- Practicality of creating separate parcels with access, water, fences, and utility connections.
- Improvements, cropland patterns, conservation easements, and farm subsidies that may complicate division.
- Evidence of each owner’s share, liens, unpaid taxes, or mortgage encumbrances that affect net proceeds.
Procedure and what to expect
- File a complaint for partition in the Court of Common Pleas. The court will notify all co-owners and interested parties.
- The court may appoint a commissioner or master to inspect the land, obtain appraisals, and recommend division or sale procedures.
- If the court orders sale, the sale may be by public auction or private sale under court oversight. Proceeds go to the clerk or a court-appointed account while the court resolves liens and distribution amounts.
- The court allocates sale proceeds according to ownership shares after paying costs, commissions, existing mortgages, property taxes, and court-ordered expenses.
Costs, timing, and risks
- Litigation can take months to years and include appraisal costs, survey fees, attorney fees, court costs, and sale commissions.
- Courts may award costs to the successful party in some cases, but each party often bears its attorney fees unless the court orders otherwise.
- Forced sale may reduce overall sale value compared to a negotiated private sale and can harm family relations.
Special considerations for farmland
- Farm programs and contracts: Conservation easements, farm leases, federal or state program payments, and nutrient management plans can limit division or reduce buyer interest. Identify these early.
- Access and utilities: Dividing farmland may require new access roads or easements that reduce productive acreage.
- Succession and operations: If one heir farms the land, court-appointed sale or division could disrupt operations. Courts consider this when feasible.
- Probate/estate context: If land is still part of a decedent’s estate, the Orphans’ Court division of the estate and the eventual transfer of title to heirs can affect timing and available remedies.
Hypothetical example
Four heirs inherit a 120-acre farm as tenants in common. Two heirs want to sell; two want to farm. Options include (a) the two farming heirs buy out the others after an appraisal; (b) all four agree to sell and split proceeds; (c) if no agreement, one heir files a partition action. The court reviews whether the 120 acres can be split into four functional parcels. Because dividing would leave fragmented fields and block road access, the court orders a partition by sale and directs a court-supervised sale, then distributes net proceeds proportionately.
Where to look for more information and statutes
For general Pennsylvania court information: Pennsylvania Unified Judicial System — https://www.pacourts.us/
For Pennsylvania consolidated statutes on real property topics (title index and text): Pennsylvania General Assembly – Title 68 (Real and Personal Property): https://www.legis.state.pa.us/cfdocs/legis/LI/cons_check.cfm?txtType=HTM&ttl=68
If your situation involves probate or estate distribution, consult the Orphans’ Court procedures of the Court of Common Pleas in the county where the decedent lived: https://www.pacourts.us/courts/courts-of-common-pleas
When to get a lawyer
Talk to a Pennsylvania real estate or probate attorney if:
- You’re considering filing a partition action or received a lawsuit paperwork.
- There are mortgages, liens, conservation easements, or farm program payments.
- Heirs disagree on whether to sell, or the property cannot be easily divided.
- You need help negotiating a buyout or drafting a partition agreement.
Helpful Hints
- Start by gathering the deed, title report, recent appraisal (or order one), survey, mortgage statements, tax bills, lease agreements, conservation easement documents, and any farm program records.
- Ask for an independent appraisal; farms often have value beyond simple per-acre figures because of improvements and contiguous acreage.
- Consider mediation early — it often preserves value and relationships and costs less than court.
- Plan for taxes: capital gains, estate issues, and allocation of property taxes can affect net proceeds or buyout affordability.
- Confirm ownership form (tenants in common vs. joint tenants). Joint tenancy with right of survivorship behaves differently after a co-owner dies.
- Record any agreements (buyouts, sales, or division plans) with the county recorder to prevent future disputes.
- Keep clear records of improvements, expenses, and rental income; courts use these when accounting among co-owners.
- Talk with an attorney experienced in Pennsylvania partition and farm law before filing a partition action — they can explain local practice and likely outcomes in your county.