Detailed Answer
When co-owners can’t agree on a buyout price, Alaska law offers voluntary and court-ordered paths. You can negotiate a private buyout or, if that fails, file a partition action under state statute.
1. Voluntary Buyout and Appraisal
Begin by hiring one or two independent appraisers. You and your co-owner each select an appraiser (or agree on one). Use the average of their valuations as the buyout price. Put this formula in writing or include an appraisal clause in any co-ownership agreement. If disputes arise, consider mediation or arbitration to narrow differences before involving a court.
2. Partition Actions Under Alaska Law
If voluntary methods stall, any co-owner may petition the court for a partition under Alaska Statutes Title 09, Chapter 45. The process works as follows:
- Partition in Kind: The court divides property into separate parcels when feasible so each owner retains physical interest.
- Partition by Sale: When dividing land is impractical or inequitable, the court orders a public sale. After sale, net proceeds distribute in proportion to each owner’s share.
- Right to Purchase: Under AS 09.45.020, the court may delay sale and allow a co-owner to buy out others at the appraised or sale price under terms the court sets.
- Costs and Fees: The court allocates advertising, trustee, and legal costs from sale proceeds. You may request attorney fees if your agreement or statute authorizes recovery.
Key statutes:
- AS 09.45.005: Defines partition actions, division methods, and conveyance procedures.
- AS 09.45.020: Establishes preference for in-kind division and sale alternatives.
Helpful Hints
- Document every agreement in writing, including appraisal formulas.
- Obtain independent appraisals early to anchor negotiations.
- Try mediation before filing court papers to save time and money.
- Review any co-ownership agreement for built-in buyout or appraisal clauses.
- Account for court costs, trustee fees, and possible delays in a partition sale.
Disclaimer: This article does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.