Overview

If two or more people own real property in Wyoming and one owner wants to take full ownership, the usual path is (1) determine the ownership and mortgage status, (2) agree on a buyout amount, and (3) refinance any existing loan or get a new loan in the buyer’s name to pay the seller. That process transfers title (via a deed) and removes or replaces mortgage responsibility. Below is a step‑by‑step FAQ‑style explanation of how that works and what to watch for under Wyoming law.

1) Who owns what and what liens exist?

Start by reviewing the deed and title. The deed tells the form of ownership (tenancy in common, joint tenancy, etc.). A title search will reveal mortgages, tax liens, judgments, or other encumbrances that affect the property. If you plan a buyout, you must know whether a mortgage covers the property and whether the lender will allow a transfer of ownership without calling the loan due.

Practical step: order a title report from a title company or attorney and get a copy of the county recorder’s recorded deed.

2) Decide how to structure the buyout

Common options:

• Refinance the mortgage into the buyer’s name and use the loan proceeds to pay the seller (most common).
• Buyer gets a new mortgage that pays off the old loan and pays the seller the agreed equity split.
• Seller signs a deed transferring title to buyer at closing after receiving cash from buyer’s refinance proceeds.
• If the co‑owner refuses to cooperate, the buyer may file a partition action in Wyoming district court to force sale or division of the property (see Wyoming statutes and court procedures listed below).

3) How do you calculate the buyout amount?

Typical steps:

• Get a current market valuation or appraisal.
• Subtract outstanding mortgage(s), liens, and anticipated closing costs to determine net equity.
• Apply the ownership share (for example, a 50/50 co‑owner normally receives half the net equity, unless otherwise agreed).
• Negotiate credits for repairs, unpaid contributions, or other expenses.

Put the agreement in writing (buyout agreement or settlement statement) showing exactly how you reached the buyout figure.

4) Mortgage issues and lender approval

Most mortgages contain a due‑on‑sale clause allowing the lender to require full repayment if ownership changes. If you plan to assume the existing loan, the lender must approve and release the other borrower from liability. More commonly, the buyer refinances into a new loan in their name. Lenders will evaluate credit, income, debt‑to‑income ratio, and the property appraisal before approving a refinance.

Tip: talk to multiple lenders up front. Ask whether they will issue a release of liability for the departing owner or require a full refinance.

5) Documents and the closing process

At closing you will generally see:

• New mortgage note and deed of trust/mortgage in the buyer’s name (if refinancing).
• Deed from the seller to the buyer transferring title (quitclaim deed or warranty deed—warranty deed preferred for stronger protection).
• A settlement statement showing payoff of the old mortgage, payment to the seller, closing costs, title insurance premium, and recording fees.

After closing, record the new deed at the county recorder’s office so public records reflect the change in ownership.

6) If a co‑owner refuses to cooperate

If an owner will not agree to a buyout, the other owner(s) may file a partition action in Wyoming district court to force a sale or physical division of the property. Partition actions are governed by statutory and court rules; a judge can order sale and distribution of proceeds based on ownership shares. For information on Wyoming’s courts and procedures, see the Wyoming Judicial Branch resource below.

7) Tax, insurance, and other practical concerns

Consider:

• Capital gains or other tax consequences from selling an ownership interest—talk to a tax advisor.
• Whether a buyout is a taxable gift (if the buyout amount is below market value).
• Updating homeowner’s insurance and property tax records after the transfer.
• Title insurance to protect against unknown title defects.

Wyoming legal resources and statutes

State law governs how deeds and property interests are recorded and how courts handle partition and foreclosure matters. Useful official resources:

• Wyoming Statutes and searchable code: https://wyoleg.gov/statutes/
• Wyoming Judicial Branch (court procedures and contacts): https://www.courts.state.wy.us/

When you need specific statutory citations (for example, partition procedure or recording requirements), the Wyoming Legislature website above is the authoritative source to search for the exact statutes and wording.

Helpful Hints

• Get a title search early. Unknown liens can derail a buyout or refinance.
• Get lender pre‑approval before negotiating a buyout number. Know how much you can borrow.
• Use a written buyout agreement that spells out the payment schedule, who pays closing costs, and what deed will be used.
• Prefer a warranty deed for the transfer when feasible. Quitclaim deeds transfer interest but give fewer protections.
• Keep documentation of contributions (mortgage payments, repairs) if those will affect the buyout calculation.
• If a co‑owner won’t cooperate, talk to a Wyoming real estate attorney about a partition action early—court cases add time and cost.
• Check title insurance options and consider purchasing an owner’s policy to reduce future title risk.
• Notify your insurer and the county assessor after the transfer to avoid lapses in coverage or incorrect tax billing.

When to talk to a Wyoming lawyer or title company

If the transaction is straightforward (clean title, cooperative co‑owner, standard refinance), a title company can often handle closing documents. Consult a Wyoming real estate attorney if there are disputes about ownership shares, liens, concerns about due‑on‑sale clauses, complex tax issues, or if a partition action may be necessary.