FAQ: Partition Actions and Buyouts for Family Property in Oregon

Short answer: In Oregon, a co-owner of real property can ask a circuit court to partition the property. The court can divide the land physically (partition in kind), order a sale and divide the proceeds, or award the property to one owner with a monetary settlement to the others. The process begins by gathering title documents, attempting negotiation or mediation, then filing a partition complaint in the county where the property sits. This article explains the steps, timeline, likely costs, and options for pursuing a buyout rather than a forced sale.

Disclaimer

This article is educational only and not legal advice. I am not a lawyer. For advice about your situation, consult a licensed Oregon attorney.

Hypothetical facts used to illustrate

Suppose three adult children inherited their parents house as tenants in common: Sibling A, Sibling B, and Sibling C each own a one-third interest. Sibling B refuses to sell; Sibling A wants either the home sold and proceeds split or to remain in the house by buying out B and C. The following explains how Sibling A could proceed under Oregon law.

Detailed answer: How partition works under Oregon law

1. Who can file and what law applies

Any person who holds a legal or equitable interest in land can bring a partition action in the Oregon circuit court where the property is located. Partition actions and procedures are governed by Oregon statutes in Chapter 105. For an overview of the statutory framework, see the Oregon Revised Statutes, chapter 105: ORS Chapter 105.

2. Types of outcomes a court can order

• Partition in kind: physical division of the property among owners, possible only when the property can be divided fairly without unfairly harming value.
• Partition by sale: court orders sale (usually at public auction or broker sale) and divides net proceeds among owners after liens and costs.
• Award to one owner with buyout: the court may give the property to one co-owner and order that person to pay other owners shares (a forced buyout). The court determines fair value and credits for improvements, mortgages, and other adjustments.

3. Steps to bring a partition action (practical checklist)

1. Confirm ownership and interests. Get the deed(s), check the county assessors records, and confirm whether ownership is as tenants in common, joint tenants, or through an estate transfer. If title is unclear, a title search or abstract may help.
2. Try to resolve before filing. Send a clear written demand asking for sale, buyout, or negotiation. Consider family mediation. Courts appreciate reasonable attempts to settle.
3. Obtain an appraisal. A current, professional appraisal helps show fair market value if you want the court to award a buyout or divide proceeds accurately.
4. File the complaint for partition. Prepare and file a complaint in circuit court naming all persons with an interest in the property and any lienholders. The complaint asks the court to partition the property in kind or, if not practicable, by sale.
5. Serve all parties. All named owners and recorded lienholders must be served with the complaint and summons under the courts rules.
6. Court inspection, evidence, and potential appointment of a referee. The court may order an inspection, take evidence on practicability of division, and may appoint a referee or commissioner to oversee valuation, partition, or sale.
7. Accounting for liens, mortgages, and costs. Liens and mortgages are typically paid from sale proceeds before owners receive their shares. The court accounts for contributions, improvements, and encumbrances when dividing proceeds or setting a buyout figure.
8. Sale or award and distribution. If sale is ordered, the court supervises the sale terms (broker or public auction) and distributes net proceeds. If the court awards property to a co-owner, that co-owner usually must pay the others the determined shares.

4. How a buyout works

If you ask the court to award the home to you (so you keep it) the court will determine the fair market value, subtract mortgages and liens, and calculate each co-owners share. The court can order you to pay the other owners their share in cash. You can propose your own valuation, present an appraisal, or propose refinancing to raise funds for the buyout. The court may also consider contributions each party made (for example, payments for mortgage, taxes, or improvements) when making equitable adjustments.

5. Timing and likely costs

Timing varies: a noncontested partition with a sale can take several months. Contested cases with valuation disputes, many parties, or appeals can take a year or longer. Costs include filing fees, service fees, attorney fees, appraisal fees, costs of sale (broker commissions or auction fees), and possible referee fees. The court may award costs and fees in particular circumstances but you should plan for out-of-pocket expenses.

6. Practical considerations and barriers

• If the property is unique (family home, sentimental value), courts prefer partition in kind only when feasible. Often, courts find a fair physical division impractical and order sale.
• If a co-owner cannot afford a buyout, they might lose the property even if they wish to keep it unless they can refinance or obtain funds.
• Mortgages remain attached to the property. A buyer at auction or one who assumes the mortgage will need to work with the lender; foreclosure risk exists if mortgage payments lapse.
• Partition can strain family relationships. Consider mediation early to reduce emotional and financial costs.

Helpful hints

• Document ownership: get a copy of the recorded deed and the county assessors tax records.
• Get an independent appraisal before filing to support value claims or buyout proposals.
• Attempt written settlement offers and mediation first; courts like to see good-faith attempts to settle.
• If you seek a buyout, line up financing (refinance or new mortgage) in advance if possible so you can act quickly after valuation.
• Understand who holds liens. Any mortgage or tax lien will be paid first from sale proceeds; the remainder is split among owners by the court.
• Consider the tax consequences of a sale or buyout; consult a tax advisor about capital gains and basis adjustments.
• Talk to an Oregon real estate attorney early. Partition cases have procedure nuances and can involve complex equitable accounting.

Key Oregon resources

• Oregon Revised Statutes, Chapter 105 (partition actions): https://www.oregonlegislature.gov/bills_laws/ors/ors105.html
• Oregon Rules of Civil Procedure and court rules: Oregon Judicial Department Rules
• Oregon State Bar: lawyer referral and resources: https://www.osbar.org/public/ris/

When to talk to an attorney

Contact an Oregon real estate litigator if any of the following apply: parties wont negotiate, title is unclear, there are multiple liens, there are many owners or unknown heirs, or you want to pursue a buyout and need help valuing interests and structuring a payment. An attorney can prepare the complaint, identify necessary parties, coordinate service, and advocate for a favorable division or buyout.

Remember: this content is educational and not legal advice. For guidance tailored to your situation, consult a licensed Oregon attorney.