Detailed Answer
When co-owners in Arizona cannot agree on a buyout price for shared property—like co-tenants in joint tenancy or tenants in common—they can pursue a court-ordered partition. Under Ariz. Rev. Stat. § 12-1101, a partition action lets one or more co-owners ask the Superior Court to physically divide the property or sell it and distribute the proceeds.
Partition in Kind vs. Partition by Sale
- Partition in Kind: The court divides the property into separate parcels. Courts order this when a physical split does not unfairly harm any owner.
- Partition by Sale: If a physical division is impractical, the court orders a public sale under Ariz. Rev. Stat. § 12-1103. The net proceeds go to co-owners based on their ownership share.
Procedure and Rights
- Filing: A co-owner files a partition complaint in the county Superior Court.
- Commissioners: The court appoints commissioners to value and divide or sell the property under Ariz. Rev. Stat. § 12-1102.
- Buyout Option: Co-owners can buy the requesting party’s share within 30 days of the sale order at the appraised price.
- Costs and Deposits: The requesting party may deposit estimated costs with the court under Ariz. Rev. Stat. § 12-1105, then recover fees from sale proceeds.
Alternative Dispute Resolution
Before litigation, parties can negotiate or mediate. They may agree on an appraisal method, use binding arbitration, or hire a neutral third-party appraiser. ADR can save time and costs.
Helpful Hints
- Review your deed or ownership agreement to confirm your interest.
- Consider mediation early to avoid court expenses.
- Get multiple appraisals to establish a fair market value.
- Understand court fees and possible deposit requirements.
- Consult a licensed attorney to guide you through procedural rules.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney about your specific situation.