When Co‑owners Refuse Mediation or Decline to Sign — How Vermont Law Handles Forced Sales of Real Property

Short answer: If some heirs or co‑owners refuse mediation or refuse to sign a sale agreement, you usually can still force a sale of the property in Vermont. The usual route is a court action (a partition action or a probate sale, depending on whether the property is held jointly or is part of an estate). The court can divide the property physically if practical, or order a sale and divide the proceeds when division in kind is not feasible.

Detailed answer — how this works under Vermont law

Start by identifying how title is held. Different paths follow depending on whether the property is owned jointly by heirs/co‑owners (co‑tenancy or tenants in common) or is still owned by the decedent’s estate with an executor/administrator in charge.

1) If the property is held by multiple co‑owners (tenants in common)

Any co‑owner generally has the right to seek a court partition. In Vermont, that process is handled through the Superior Court (civil division). A partition action asks the court to either:

• divide the land into separate physical parcels for each owner (partition in kind), or
• order a sale of the entire property and divide the net proceeds among the owners (partition by sale),

The court decides which remedy is fair and practicable. If the property cannot be fairly divided without harming its value (for example, a single-family home on a single lot), the court commonly orders a sale and splits the proceeds. The court will consider factors such as the size and nature of the parcel, the owners’ respective interests, and whether dividing the land would be inequitable.

Practical steps in a partition action:

• File a complaint for partition in the Vermont Superior Court where the property is located.
• Serve all co‑owners (including any heirs who hold interests). They can file responses or defenses.
• The court may appoint commissioners, referees, or a receiver to value or sell the property, handle bidding procedures, and oversee the sale.
• The court issues an order authorizing a sale if it finds partition in kind impracticable. Sale proceeds pay liens, mortgages, expenses, and then distribute remaining funds according to ownership shares.

Refusing mediation or refusing to sign a sale agreement does not prevent a co‑owner from seeking partition. The court has authority to order a sale over the objections of one or more owners.

2) If the property is part of a decedent’s estate (probate context)

If the property remains titled in the decedent’s name and an executor or administrator is managing the estate, the personal representative may ask the Probate Division or Superior Court for authority to sell real property. The court will examine whether the sale is necessary to pay debts, taxes, or to fairly divide the estate among beneficiaries. If beneficiaries object, the court can still authorize a sale when it finds the sale is proper under the circumstances.

Whether you proceed through probate or through a partition action depends on title and the estate’s administrative status. An executor with explicit testamentary power to sell may be able to sell without a separate partition action, but if co‑owners hold title directly, partition is the usual route.

Costs, liens, and distribution

A court‑ordered sale typically pays mortgage liens, tax liens, HOA fees, and sale costs first. Net proceeds then distribute to owners according to ownership percentages or as the court orders. Courts may also award costs or attorney fees in some circumstances, depending on the equities of the case.

Mediation and court‑ordered ADR

Vermont courts encourage settlement and often offer or order mediation or other ADR. While mediation is a common and useful step, a party’s refusal to mediate does not stop the court from hearing a partition action or ordering a sale. In some cases, the court may impose sanctions or consider the refusal when allocating costs, but the refusal alone usually will not block a forced sale.

What to expect in practice

• The process can take months to more than a year depending on complexity, title issues, and court schedules.
• If a co‑owner wants to keep the property, that person can attempt a buyout — either by private agreement or by asking the court to credit a buyout amount against their share.
• If mortgages or liens exist, the lender’s rights must be addressed; a sale will generally pay off those liens first.
• Tax consequences can arise for gains or distributions; consult a tax advisor before completing a sale.

Where to read the Vermont rules and courts’ general pages

• Vermont Legislature statutes and searchable code: https://legislature.vermont.gov/statutes/
• Vermont Judiciary main site (court locations, probate, superior court information): https://www.vermontjudiciary.org/

Search the statutes site for terms like “partition” or “real property” and check the Vermont Judiciary pages for the Superior Court (civil) and Probate Division guidance about sale procedures.

Helpful Hints

• Gather title documents now: deed, mortgage, recent tax bills, and any probate filings. The court will want clear title information.
• Get an appraisal or at least a market analysis so you understand likely sale value and whether partition in kind is feasible.
• Consider a buyout offer — sometimes one heir can buy out the others for fair market value and avoid court costs.
• If you are an executor, review the will for any grant of sale power. That authority may simplify a probate sale.
• Be realistic about costs: court actions, appraisals, closing costs, liens, and taxes reduce net proceeds to heirs.
• Try mediation early. Even if others refuse, offering mediation shows you tried to settle and may favorably influence the court on costs if the matter proceeds to litigation.
• Talk to a Vermont lawyer who handles real property, probate, or partition cases. An attorney can explain likely timelines and costs and can file the correct paperwork for your county.

Disclaimer: This is general information about Vermont law for educational purposes only. It is not legal advice, nor does it create an attorney‑client relationship. For advice about your specific situation, consult a licensed Vermont attorney.