Detailed Answer
When co-owners of Arkansas real estate cannot agree on a buyout price, state law provides several remedies. You may pursue negotiation, mediation or appraisal to set a fair value. If those fail, you can ask the court for a partition under Arkansas Code Title 16, Chapter 65. A partition action forces either:
- Partition in kind: The court divides the property physically among owners when it can be split fairly.
- Partition by sale: The court orders a public sale and divides proceeds according to ownership shares when in-kind division is impractical or unfair.
To start a partition, one co-owner files a complaint in the county where the property lies. The court will notify all parties, appoint a commissioner or referee, and may order an interim accounting of expenses, rents and profits from the property. The commissioner evaluates whether in-kind division works or recommends a sale. If sale is ordered, the property sells at public auction. After sale, the court deducts costs, expenses, liens and then distributes the net proceeds based on each owner’s interest.
Key Arkansas statutes:
- Ark. Code Ann. § 16-65-101 et seq. (Partition of real property) – https://www.arkleg.state.ar.us/ArkansasCode/Title-16/SubTitle-4/Chapter-65
- Ark. Code Ann. § 16-65-202 (Partition by sale) – https://www.arkleg.state.ar.us/ArkansasCode/Title-16/SubTitle-4/Chapter-65?view=part&chapter=65&title=16
Alternatives to court action include:
- Mediation: A neutral mediator guides owners toward a voluntary buyout agreement.
- Independent appraisal: Co-owners jointly select an appraiser to establish market value and negotiate around that figure.
- Pre-agreed buy-sell clause: If you have a co-ownership agreement, it may include a formula or process for valuations and transfers.
If forced partition suits proceed, expect court costs, appraiser fees and potential delay. Weigh these factors when deciding whether to negotiate a private buyout or move directly to partition.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney to discuss your specific circumstances under Arkansas law.
Helpful Hints
- Obtain a current appraisal to support negotiations.
- Review any co-ownership or partnership agreement for valuation clauses.
- Consider mediation before filing a partition complaint.
- Ask the court about potential fee-shifting or cost allocation.
- Plan for lien clearance and expense accounting in a partition sale.
- Consult a real estate attorney to guide you through court procedures.