What to do when a co-owner blocks further mediation and you need to force a sale of jointly owned property in South Dakota

Disclaimer: This is educational information only and not legal advice. I am not a lawyer. If you need legal advice about a specific dispute, consult a licensed South Dakota attorney.

Detailed Answer — How the courts handle a forced sale of jointly owned real property in South Dakota

If you and another person own real property together and one co-owner will not cooperate with mediation or other settlement efforts, your primary legal remedy is usually a partition action in South Dakota circuit court. A partition action asks the court to divide the property among co-owners (partition in kind) or, if division is not practical or fair, to order a sale of the property and divide the proceeds among the owners.

Key steps and concepts:

Filing a partition action: You (or your attorney) file a civil complaint in the appropriate South Dakota circuit court asking for partition. The complaint must identify all owners or parties with an interest in the property so they can be served with process. The South Dakota court system’s website explains how to file civil actions: https://ujs.sd.gov/.
Who must be joined: All persons with an ownership interest must be named. If title is clouded or there are unknown owners or heirs, the court may require notice by publication or other procedures to bring everyone before the court.
Partition in kind vs. partition by sale: Courts prefer a physical division (partition in kind) if it can be done fairly and without seriously reducing value. If the property cannot be conveniently divided — for example, a single-family house on a single lot — the court is likely to order a sale and divide the net sale proceeds among the owners according to their ownership shares and any legal adjustments (liens, contributions, or credits).
Interim relief the court can order: While the action is pending, a court can appoint a receiver to manage, rent, or maintain the property, order accounting of rents and expenses, and determine credit for improvements or payments made by a co-owner. The court may also set terms for sale and distribution of proceeds if sale is ordered.
Effect of refusing mediation: A co-owner’s refusal to continue mediation does not bar you from filing a partition action. Courts respect settlement efforts, but they have authority to resolve ownership disputes through litigation and order sale or division regardless of the other party’s willingness to mediate.
What the court considers in dividing proceeds: The judge typically accounts for mortgages and liens (those are paid from sale proceeds in order), payment of taxes and insurance, necessary repairs, reasonable rental value (if one co-owner occupied and collected rent), and contributions for improvements. The court may adjust distributions to reflect equitable considerations.
Timing and costs: Partition lawsuits can take many months. Expect court filing fees, possible costs for appraisals, publication, a receiver, and attorneys’ fees. In some situations the court may award attorneys’ fees to one party; in others, each side bears its own fees. Ask a lawyer about fee-shifting possibilities in your case.
Title, mortgages, and liens: A judicial sale under a partition action will not eliminate senior liens (e.g., mortgage). Liens are paid from sale proceeds according to priority. If a co-owner wants to keep the property but cannot satisfy liens, a buyout or refinancing may be needed.
Tax consequences: Sale proceeds may trigger capital gains tax and other tax consequences. Consult a tax professional before completing a sale.

For general statute resources and additional legal research on South Dakota laws and civil procedures, use the South Dakota Legislature’s site for the codified laws: https://sdlegislature.gov/Statutes/. These pages will help you locate statutes on civil actions and remedies relevant to partition and property disputes.

Practical process example (hypothetical facts)

Suppose two siblings own a vacation cabin as tenants in common. One sibling moved away and refuses to mediate. The other sibling wants the property sold. The sibling seeking sale:

Collects deed and mortgage documents, property tax bills, proof of any rental income or expenses, and title information;
Has the property appraised to establish fair market value;
Files a partition complaint in circuit court naming the co-owner and any lienholders;
Requests that the court either divide the property (impractical here) or order sale and an accounting so each sibling receives their equitable share after liens, taxes, costs, and credits for improvements;
If needed, asks the court to appoint a receiver to market the cabin and protect value while the case proceeds.

After notice and any required hearings, the court can order sale. The clerk or appointed official conducts the sale, pays liens and costs, and distributes the remainder according to the court’s judgment.

Helpful Hints — Practical tips to prepare and improve outcomes

Gather documents: deed, mortgage statements, tax bills, insurance policies, leases, receipts for repairs or improvements, and communication records with the co-owner.
Get a current appraisal or market valuation early to set realistic expectations and support your filings.
Try a concrete buyout offer before filing: put a written offer on the table with proof of funds — courts consider reasonable settlement attempts favorably.
Consider a short renewed mediation with agreed rules (limited scope, neutral mediator, deadline) — sometimes formal offers or a mediator’s written recommendation can move an unwilling co-owner.
Document occupancy and rental income: if one owner occupied or collected rent, accounting is important in court allocation.
Check for liens and mortgages: know senior lien amounts so you understand likely net proceeds after sale.
Plan for costs and timing: partition suits can be costly and take months; budget for attorney fees, appraisal, and potential receiver or repair costs.
Consult both an attorney and a tax advisor: legal steps and tax consequences (capital gains, basis adjustments) often interact.
Hire a local South Dakota attorney experienced in property or civil litigation: they will file correctly, identify all necessary parties, and present accounting and valuation evidence effectively in circuit court.

If you want help finding a local attorney, consider contacting your county bar or the South Dakota State Bar referral resources through the South Dakota Unified Judicial System or the State Bar site for lawyer referral options.

Remember: refusal to continue mediation does not prevent you from pursuing court remedies. A partition action is the standard legal path to force an equitable division or sale when co-owners cannot agree.