Options When Co-Owners Disagree on a Buyout Price in Vermont
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance tailored to your situation.
Detailed Answer
When co-owners of real property in Vermont cannot agree on a buyout price, they have several options before and after seeking court intervention:
1. Negotiation and Appraisal
Parties can jointly hire a neutral, licensed appraiser to determine fair market value. They may agree to split the appraised value or allow one co-owner to buy out the other at the appraised price. A written buy-sell agreement specifying this process can prevent future disputes.
2. Mediation
Mediation through the Vermont Dispute Resolution Center or private mediators allows co-owners to reach a voluntary settlement in a structured environment. Mediators can assist in valuing the property and negotiating payment terms.
3. Court-Ordered Partition
If informal methods fail, a co-owner can file a partition action under 12 V.S.A. § 802. The court may order:
- Partition in Kind: Physical division of the property based on ownership shares, if practicable.
- Partition by Sale: Sale of the property and distribution of net proceeds among co-owners. The court most often orders a sale when division in kind would be inequitable or impractical under 12 V.S.A. § 804.
The court will appoint referees or commissioners to conduct the partition or sale. Sale costs, legal fees, and liens are paid before distributing net proceeds according to each party’s share.
Helpful Hints
- Consult a neutral, licensed appraiser to avoid valuation disputes.
- Draft a co-ownership agreement with buyout formulas at the start.
- Use mediation to explore creative payment terms before litigation.
- Review Vermont Rules of Civil Procedure, Rule 80.1 et seq., for partition procedures.
- Prepare for court costs and potential delays in a partition action.