South Dakota: Forcing the Sale of a Co-Owned House — How Partition Actions Work | South Dakota Partition Actions | FastCounsel
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South Dakota: Forcing the Sale of a Co-Owned House — How Partition Actions Work

Detailed Answer

Short answer: If you own real estate together with two other co-owners in South Dakota and you cannot agree about what to do with the property, you can ask a court to order a partition. A partition action asks the court either to divide the property among the owners (partition in kind) or to sell the property and split the proceeds (partition by sale). The usual route is to file a civil action in the South Dakota circuit court where the property sits.

Who can start a partition action?

Any co-owner of real property can file a partition action against the other co-owners. Partition applies whether you own as tenants in common or as joint tenants (there are some differences for survivorship rights, but courts still may partition jointly owned property).

Which court handles partition actions?

Partition actions are civil matters filed in the circuit court in the county where the property is located. The court has authority to adjudicate ownership interests, appoint commissioners, order sale, and distribute the proceeds.

Typical court process and outcomes

  • Filing the complaint: You (the plaintiff) prepare and file a complaint asking the court to partition the property. The complaint must name all co-owners and any known lienholders or interested parties.
  • Service and response: Defendants (the other owners) are served and have an opportunity to answer or raise defenses.
  • Pre-trial steps: The court may order property inspection, valuation, mediation, or appoint commissioners to examine title and make recommendations.
  • Partition in kind: If the property is physically divisible in a practical and equitable way, the court may divide it so each owner gets a separate parcel proportionate to ownership shares.
  • Partition by sale: When in-kind division is impractical or inequitable (common for single houses on one lot), the court commonly orders a sale. The sale can be a public auction or a court-supervised sale through a commissioner or other method approved by the court.
  • Distribution of proceeds: After paying mortgages, liens, taxes, sale costs, and court costs, the remaining proceeds are distributed to owners according to their ownership interests (or as the court orders).

When will the court order sale rather than division?

Courts look at whether the property can be fairly divided without prejudice to any owner. For a single-family home on one lot, the court often finds division impractical and orders sale. The court also considers fairness, liens, expenses, and whether a proposed division would injure anyone’s rights.

Who pays costs, taxes, liens and mortgages?

Mortgages and liens generally must be satisfied from sale proceeds or a co-owner who wants to stay may need to assume them. The court will order an accounting: who paid what, and how those sums affect distribution. If one co-owner has paid taxes, mortgage payments, or improvements, the court can award that co-owner a credit when dividing proceeds.

Can a co-owner buy out the others?

Yes. A co-owner can propose to buy the others’ shares. The court may allow a buyout instead of sale if the buyer can post funds or other security and the court finds the buyout fair. Often the court will order an appraisal to set a fair market value.

Timing and costs

Partition actions vary in length. Simple uncontested matters can resolve in a few months; contested matters with valuation disputes or appeals can take much longer. Expect court fees, possible attorney fees, appraisal costs, and sale expenses. The court can allocate some costs to defendants if it finds misconduct, but each case differs.

Relevant South Dakota law and where to read it

South Dakota’s civil statutes and rules govern partition procedure and civil process. You can review the South Dakota Codified Laws and search for partition-related provisions at the state legislature’s statute site: https://sdlegislature.gov/Statutes/Codified_Laws/. For practical court procedures and forms, see the South Dakota Unified Judicial System: https://ujs.sd.gov/.

Practical first steps you can take now

  1. Clarify ownership: Obtain a copy of the deed from the county register of deeds or online to confirm the ownership type (tenants in common vs. joint tenants) and each owner’s share.
  2. Collect documents: Gather mortgage statements, tax records, insurance, repair receipts, and any written agreements among owners.
  3. Discuss alternatives: Offer a buyout, propose selling on the open market, or suggest mediation to avoid litigation costs.
  4. If no agreement, prepare to file: If negotiation fails, consult a South Dakota real estate or civil litigation attorney about filing a partition action in the county circuit court.

When to hire an attorney

If the other owners resist sale, if there are liens or bankruptcy issues, or if you need an accurate valuation and an orderly sale, an attorney can file the complaint, handle service, manage hearings, and protect your financial interests. An attorney also helps if you want a buyout or suspect one or more co-owners has acted improperly (waste, hiding assets, or refusing to contribute to mortgage/tax payments).

Potential complications

  • Disputed ownership shares or title defects.
  • Outstanding mortgages, liens, tax judgments, or bankruptcy filings by co-owners.
  • One co-owner living in the property and objecting to sale—court may set occupant’s rights and sale timing accordingly.
  • Requests for attorney fees or costs that change net proceeds.

Bottom line: When co-owners cannot agree, a partition action in South Dakota circuit court is the standard legal mechanism to force a sale or divide the property. Before filing, gather documentation, attempt negotiation or mediation, consider a buyout, and consult a qualified South Dakota attorney to discuss strategy and likely costs.

Disclaimer: This article explains general legal principles under South Dakota law and is for educational purposes only. It is not legal advice. For advice specific to your situation, consult a licensed South Dakota attorney.

Helpful Hints

  • Get a current deed and title report from the county register of deeds to confirm ownership and liens.
  • Ask for a market appraisal before litigation — a reliable value helps negotiations and court decisions.
  • Propose mediation early. Courts often encourage settlement and mediation is usually far cheaper than litigation.
  • Keep records of who paid mortgages, taxes, insurance, and repairs — these payments affect distributions.
  • If you want to stay in the home, be ready to show how you will compensate other owners (cash buyout, loan, or assumption of debt).
  • Expect the court to order sale costs and liens paid first; net proceeds go to owners in proportion to their interests.
  • Ask the attorney about possible recovery of attorney fees if other owners acted in bad faith — South Dakota courts can award fees in some circumstances.
  • Consult an attorney early if you suspect a co-owner may file bankruptcy; bankruptcy can delay or change what the court can do.
  • Consider tax consequences of sale proceeds; a tax advisor or CPA can help estimate capital gains and basis issues.
  • Use clear, written offers in buyout talks and keep communications documented — written evidence helps in court if negotiation fails.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.