Detailed Answer
If you co-own real property in Arizona and negotiation or voluntary mediation has failed, Arizona law provides a court process called a partition action that lets a co-owner ask a court to divide or sell the property and distribute the proceeds. The partition statutes are located in Arizona’s civil procedure laws (see A.R.S. § 12-1101 et seq.). For an overview of the relevant statutes, see the Arizona Revised Statutes, Title 12: https://www.azleg.gov/arsDetail/?title=12.
What a partition action does
When a co-owner files a partition action in superior court, the judge has two main remedies:
- Partition in kind: physically divide the land into separate parcels if a fair physical division is practicable.
- Partition by sale: order the property sold and divide the sale proceeds among owners according to their ownership shares when physical division is impractical or would be unfair.
How the process generally works in Arizona
- File a complaint for partition in the county superior court with jurisdiction over the property. The complaint identifies the property, the parties, each party’s claimed ownership share, and asks the court for partition.
- Serve all co-owners and any other interested parties (creditors, lienholders). Anyone with a recorded interest must be joined or properly notified.
- The defendant may respond. If mediation already occurred and one co-owner refuses further voluntary mediation, that does not prevent filing the suit; the court controls the civil action and may or may not refer the case to court-connected mediation depending on local rules.
- The court may order discovery and valuation. The judge will consider appraisals, encumbrances (mortgages and liens), and whether an in-kind division is practical.
- If the court orders sale, it commonly appoints a commissioner or special master to manage a supervised sale. Proceeds pay mortgages and liens first, then costs, with net proceeds divided according to ownership interests after accounting for credits (improvements, payments, rents, or expenses attributable to specific owners).
Key legal points under Arizona law
- The partition statutes provide the remedy and the court’s authority to divide or order sale (A.R.S. § 12-1101 et seq.; see Title 12 link above).
- Liens, mortgages, and recorded encumbrances remain attached to the property; the court-ordered sale pays these liens from sale proceeds in priority order before distributing net proceeds to owners.
- The court aims to make a fair division according to legal ownership share. If one co-owner paid more toward mortgage, taxes, or improvements, the court’s accounting can adjust distributions.
- Court-ordered sale is common when physical division would substantially reduce value, when parcels cannot be practically separated, or when co-owners cannot agree on any other arrangement.
What courts consider when deciding sale vs. physical division
Courts examine practicality, value, and fairness. Factors include the size and layout of the parcel, zoning, access, potential for creating uneconomic parcels, current use, and whether a physical split would significantly lower market value. Courts typically prefer partition in kind when feasible but will order sale when it is the equitable outcome.
Practical consequences and timing
Expect several months to over a year from filing to final sale depending on complexity, disputes over ownership shares, lien resolution, appraisal and sale scheduling, and possible appeals. Costs include court filing fees, service costs, appraisal fees, commissioner fees, advertising and sale expenses, and attorney fees. Those costs come out of the sale proceeds or are allocated by the court.
Alternatives you should try before litigation
- Propose a buyout: offer to buy the co-owner’s share at appraised value (or vice versa) and get the agreement in writing.
- Private sale by agreement: agree to list and sell together and split proceeds by ownership share.
- Arbitration or court-connected mediation: even if earlier mediation failed, an agreed arbitrator or another mediator might yield a settlement cheaper than litigation.
When litigation is appropriate
File a partition action when negotiations and voluntary dispute-resolution efforts fail and you want a legal means to divide or sell the property. Filing is often appropriate if a co-owner refuses buyout offers, refuses a negotiated sale, or is committing waste or preventing reasonable use of the property.
What to gather before you go to an attorney
- Recorded deed(s) and title documents showing each owner’s interest.
- Mortgage statements and lien documentation.
- Property tax records, insurance, lease or rental agreements (if rented), and records of payments for improvements, taxes, or mortgage contributions.
- Any written offers, correspondence about buyouts, or prior mediation agreements.
Costs, fees, and taxes
Sale proceeds first satisfy liens and sale-related costs. The court’s final accounting allocates net proceeds. Capital gains taxes or other tax consequences depend on each owner’s basis and sale price—consult a tax advisor for specifics.
Helpful Hints
- Start with documentation: clear deeds and lien records speed the case and reduce surprises.
- Get a professional appraisal early to set realistic expectations and to support motions or settlement negotiations.
- Consider a temporary injunction if the co-owner threatens waste, removal of fixtures, or other acts that would reduce value—ask an attorney about emergency relief.
- Account for contributions: keep records of payments you made for mortgage, taxes, or improvements; the court can credit these amounts in the final distribution.
- Communicate in writing. Settlement offers, buyout proposals, and refusals should be documented to show the court attempts at resolution.
- Understand the timeline. Partition suits can be lengthy and have costs; weigh the benefits of achieving a clean break vs. the expense and time involved.
- Talk to a local real property attorney experienced with partition actions to review strategy, likely outcomes, and estimated litigation costs.
Disclaimer: This article provides general information about Arizona law and is not legal advice. It does not create an attorney-client relationship. For advice about your situation, consult a licensed Arizona attorney.