If you co-own property in Arizona and cannot agree on sale logistics or how to share costs, you have several legal options. This guide explains each path under Arizona law so you can decide your next steps with confidence.
Detailed Answer
1. Voluntary Agreement
First, try to negotiate terms directly. Draft a written agreement that covers sale price, listing agent fees, closing costs, and expense allocation. Having clear, signed terms can prevent future disputes.
2. Mediation or Arbitration
If direct talks stall, propose mediation. A neutral mediator helps co-owners find common ground. You can also agree in advance to binding arbitration, where an arbitrator issues a decision both parties must follow.
3. Partition Action in Court
When informal methods fail, Arizona law allows any co-owner to file a partition action. The court can:
- Divide the property physically (partition in kind), if feasible.
- Order a sale and split proceeds (partition by sale).
Under A.R.S. § 12-1211, the court handles costs and legal fees. If a sale occurs, the court allocates net proceeds based on each owner’s share and reimburses advance costs before dividing profits (A.R.S. § 12-1212).
4. Receiver Appointment
The court may appoint a receiver to manage, maintain, or sell the property. This ensures preservation of value, payment of taxes, and completion of repairs during litigation.
5. Cost Contribution and Reimbursement
Arizona courts recognize each co-owner’s right to equitable contribution for expenses such as property taxes, insurance, and necessary repairs. Document and present receipts to the court to seek reimbursement from co-owners who did not share in those costs.
Disclaimer: This content is for educational purposes only and does not constitute legal advice. Consult a licensed attorney for advice about your situation.
Helpful Hints
- Keep detailed records of all expenses and communications.
- Consider drafting a co-ownership agreement at the start.
- Use mediation to save time and legal fees.
- Research court filing fees and timelines for a partition action.
- Consult a real estate attorney before filing any court papers.