Detailed Answer
When two or more people own property together in Washington, disagreements over sale timing, price or cost-sharing can stall any transaction. Washington law provides tools to resolve co-owner disputes, including court-ordered partition actions, buy-out schemes and alternative dispute resolution. Below is an overview of the main options.
1. Partition Action Under RCW 7.52
Any co-owner may file a petition for partition in superior court under RCW 7.52.010. The court may:
- Order a partition in kind (physical division of property) when practical.
- Order a partition by sale and divide proceeds among co-owners. See RCW 7.52.090.
A partition action can resolve both sale logistics and cost-sharing disputes. The court allocates sale costs, attorney fees and other expenses fairly among co-owners.
2. Buy-Out Agreements
Before or after filing for partition, co-owners can negotiate a buy-out. One owner purchases the other’s interest at a mutually agreed valuation. To reduce conflict, parties often hire a licensed appraiser to set fair market value. Draft a written agreement spelling out payment terms and allocation of closing costs.
3. Mediation and Arbitration
Washington courts and local bar associations offer mediation to resolve co-owner disputes without litigation. In mediation, a neutral mediator helps parties craft solutions—like staggered sales or shared expense schedules. If you prefer binding decisions, you can agree to arbitration under RCW 7.04.
4. Cost Sharing and Reimbursement
If one co-owner pays taxes, maintenance or improvements, they may seek reimbursement. Under a partition action, the court can credit these payments against the non-paying owner’s share of proceeds. Keep detailed records of all expenses.
5. Considerations Before Filing
- Review any co-ownership agreement or operating agreement for dispute resolution clauses.
- Estimate court and attorney fees versus potential gain from a court-ordered sale.
- Gather documentation: deeds, tax records, maintenance bills, loan statements.
- Consult a local real estate attorney to confirm procedure and timelines.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Washington for guidance on your specific situation.
Helpful Hints
- Start with an open conversation—sometimes simple misunderstandings block progress.
- Document all proposed sale terms and cost estimates in writing.
- Use a neutral appraiser to set clear market value before negotiations.
- Explore mediation early to avoid costly litigation.
- Track all maintenance and tax payments to support reimbursement claims.
- Be aware that partition actions can take several months to complete.