How will sale proceeds be divided among co-owners after a partition sale in Washington (WA)? | Washington Partition Actions | FastCounsel
WA Washington

How will sale proceeds be divided among co-owners after a partition sale in Washington (WA)?

Detailed Answer

Short answer: When a Washington court orders a partition sale, the sale proceeds are first used to pay liens, mortgages, taxes, and costs of the sale and the partition action; the net proceeds are then divided among the co-owners according to their legal and equitable ownership interests, subject to court-ordered credits or debits for contributions, improvements, waste, rents, and other adjustments. See the Washington partition statutes for the court’s authority: RCW Title 7, Chapter 52 (Partition).

1. Who decides how much each owner gets?

The court in the partition action determines the owners’ shares. It relies on recorded deeds, declarations of ownership, testimony and documents about contributions, and other evidence to find each party’s legal and equitable interest. If owners hold title as tenants in common, the court usually treats ownership according to recorded percentage interests or proof of contribution. If title is by joint tenancy, the court still divides the property for purposes of the partition sale, but survivorship rules and transfers before the sale can affect shares.

2. What gets paid before distribution?

  • Mortgage liens and recorded encumbrances are typically paid from sale proceeds in order of legal priority.
  • Property taxes, special assessments, and statutory liens will be paid.
  • Costs of sale (broker fees, escrow/closing costs) and costs of the partition action (court costs, order-of-sale expenses) are deducted.

Because liens run with the property, buyers take title subject to recorded interests unless they are paid off at closing. That means those debts reduce the gross sale price before owners get their shares.

3. How are adjustments handled?

After paying liens and sale costs, the court apportions the remaining proceeds (the net proceeds). The court may:

  • Allocate proceeds according to each owner’s percentage interest or as the court finds equitable based on proof.
  • Give credits to an owner who made mortgage payments, paid taxes, or paid for necessary repairs that preserved value.
  • Charge an owner who caused waste or who took unauthorized value from the property.
  • Account for rents and profits received from the property during periods of ownership, allowing credits or debits for occupancy or rental income.

These adjustments are equitable remedies the court can apply to reach a fair distribution. The partition statutes give the court authority to sell and to order how costs and proceeds are handled; the court uses evidence and equitable principles to decide specific credits or charges. See RCW 7.52 for the statutory framework.

4. Simple numeric example

Hypothetical facts: Two co-owners (A — 60% interest; B — 40%) elect partition by sale. Sale price: $500,000. Mortgage balance and liens paid at closing: $100,000. Closing and sale costs: $10,000. Property taxes and assessments due: $5,000.

  1. Gross sale price: $500,000
  2. Less liens/mortgage: $100,000 → remaining $400,000
  3. Less sale/closing costs: $10,000 → remaining $390,000
  4. Less taxes/assessments: $5,000 → net proceeds $385,000
  5. Divide by ownership share: A (60%) = $231,000; B (40%) = $154,000

If B had paid $20,000 of repairs that increased value and proved that payment, the court might credit B before final distribution (for example, subtracting $20,000 from A’s share or adding to B’s), depending on the evidence and equitable result.

5. What about liens against only one owner (personal judgments)?

A personal judgment lien against one co-owner that attaches to that owner’s interest in the land may be paid from that owner’s share. Liens that are recorded against the property itself (like mortgages) must be satisfied from the proceeds before owners get paid. How a judgment lien affects distribution can require detailed accounting; the court may direct that the lien be paid out of the affected owner’s portion.

6. Partition in kind vs partition by sale

Washington courts prefer partition in kind (physically dividing the property) when it is practical. If physical division is impractical or inequitable, the court orders a sale and divides proceeds. The statutory partition procedures and the court’s discretion are discussed in RCW 7.52.

7. Practical timelines and enforcement

Partition litigation can take months to years depending on disputes over ownership percentages, liens, or credits. After the sale, the court issues an order directing distribution of proceeds and the clerk or escrow agent completes the distribution per the order. If an owner disagrees with the court’s division, that owner must appeal within Washington’s appellate deadlines, or the distribution will proceed.

8. When to get help

If the ownership shares are disputed, a co-owner alleges unequal contributions, claims credits for repairs or mortgage payments, or if complex liens or tax issues arise, consult a Washington real property attorney to prepare evidence and advocate in court. You can also reach out to the Washington State Bar Association for resources and referrals: mywsba.org.

Disclaimer: This article explains general principles of Washington partition law for educational purposes only. It is not legal advice and does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Washington attorney.

Helpful Hints

  • Collect and bring deeds, recorded instruments, and title reports to any consultation.
  • Gather proof of who paid what: canceled checks, escrow statements, mortgage payment records, tax bills, and receipts for repairs or improvements.
  • Document occupancy and rental income with leases, bank records, or rent receipts—these affect rents-and-profits accounting.
  • Get copies of any recorded liens or judgments from the county recorder’s office; these often determine priority for payment.
  • If you want to keep the property, consider whether you can buy out the other owners; the court often allows a buyout as an alternative to sale.
  • Ask your attorney about temporary orders to protect property value (e.g., maintenance, insurance) while the case proceeds.
  • Remember that contributions toward mortgage, taxes, or improvements are powerful evidence if you want a credit at distribution—keep clear records.
  • Search the Washington partition statute for procedural rules and the court’s authority: RCW 7.52.

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.