Detailed Answer
When co-owners cannot agree on sale logistics or cost sharing, Texas law offers several paths to resolve disputes. You can pursue a court-ordered partition, negotiate a buyout, or use alternative dispute resolution. Below is an overview of each option.
1. Court-Ordered Partition
Under Chapter 23 of the Texas Property Code, any co-owner may file a partition action. The court first considers whether it can divide the property by physical boundaries (partition in kind). If division is impractical or would substantially reduce value, the court orders a public sale and splits the proceeds according to ownership shares.
Key provisions:
- Filing requirements and procedures: Tex. Prop. Code §23.001
- How the court allocates costs and commissions: Tex. Prop. Code §23.103
The partition action forces a sale when co-owners reach an impasse. It usually takes several months and incudes court fees and possible sale commissions.
2. Appointment of a Partition Commissioner
If the court orders a sale but co-owners disagree on how to handle logistics, it may appoint a partition commissioner. This neutral third party handles appraisals, sale listings, and distribution of proceeds.
Statutory authority: Tex. Prop. Code §23.104
3. Buyout Agreements
Before or instead of filing a partition suit, one co-owner can offer to buy out the others. Courts may enforce reasonable buyout terms if they align with each party’s fair market value. A written agreement clarifies payment schedules, valuations, and who covers closing costs.
4. Alternative Dispute Resolution
You can avoid litigation by using mediation or arbitration. A neutral mediator helps co-owners negotiate sale processes, split costs, and set timelines. An arbitrator issues a binding decision if co-owners agree in advance to arbitration rules.
5. Receiver Appointment
If one co-owner mismanages or fails to maintain the property, a court may appoint a receiver to protect its value. The receiver collects rents, pays expenses, and may facilitate sale preparations.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a licensed Texas attorney to discuss your specific situation.
Helpful Hints
- Act early. Start mediation before costs and tensions rise.
- Get a professional appraisal to establish fair market value.
- Review Chapter 23 of the Texas Property Code for timing and fees.
- Consider filing a partition suit if co-owners refuse reasonable buyout offers.
- Choose a commissioner with real estate and legal experience.