How to Force the Sale of Shared Property in Colorado — Partition Actions Explained | Colorado Partition Actions | FastCounsel
CO Colorado

How to Force the Sale of Shared Property in Colorado — Partition Actions Explained

Short answer — How the court can order a forced sale in Colorado

Under Colorado law, any co-owner of real property can ask a district court to divide jointly owned land. If the court finds that dividing the property in kind is impractical or would unfairly harm owners, it can order the property sold and the net proceeds divided among the owners. The process starts with a partition action in district court and usually ends with a court-ordered sale when other owners decline to buy you out.

Relevant Colorado law: partition actions are governed by the Colorado Revised Statutes (see the statutes covering partition—commonly cited as C.R.S. § 38-41-101 et seq.). For a searchable copy of Colorado statutes, see: https://leg.colorado.gov/colorado-revised-statutes.

Detailed answer — Step-by-step explanation of what happens and what you can do

1. Who may bring the case and where it is filed

Any owner with an interest in the land (joint tenant, tenant in common, co-tenant) may file a partition action in the district court for the county where the property is located. The person who files is the plaintiff; the other co-owners are defendants. If you hold an interest as a spouse, trustee, heir, or as part of an estate, you still generally can seek partition.

2. Partition in kind vs. partition by sale

The court has two primary remedies:

  • Partition in kind: the property is physically divided so each owner gets a separate portion. Courts prefer this when feasible and when it will not prejudice the owners.
  • Partition by sale: the court orders the property sold and the proceeds distributed. The court will order sale when physical division is impractical, would reduce value, or produce unfairness.

When co-owners refuse to negotiate a buyout, partition by sale is the likely outcome because the court must provide a practical way to end the joint ownership.

3. Typical procedural steps in Colorado

  1. File a complaint for partition in district court naming all co-owners and attaching proof of ownership (deed, title report).
  2. Serve the defendants. Those owners may respond, counterclaim, or assert defenses (for example, an existing right to possession or equitable claims).
  3. If the court decides on partition, it may appoint commissioners or a referee to examine the property, recommend division or method of sale, and report back to the court.
  4. If sale is ordered, the court will set the method of sale and may authorize sale at public auction, private sale under court supervision, or sale through a broker, depending on local practice and the court order.
  5. The court will resolve liens, outstanding mortgages, taxes, and costs. Net proceeds are then divided among the owners according to their ownership shares and any adjustments (e.g., payments for improvements, rents, or debts).

4. What if the other owners won’t make buyout offers?

If co-owners refuse to offer a buyout, you can still force resolution by filing the partition action. You do not have to wait for the other owners to tender an offer. The court can appoint commissioners to value the property and recommend a sale. If owners do not or cannot buy the property within the time set by the court, the sale proceeds follow the court order and the plaintiff is paid their share.

5. Who pays costs and can the court award attorneys’ fees?

Courts commonly allocate court costs and the commissioners’ fees from the sale proceeds before distributing net proceeds to owners. Colorado courts may award attorneys’ fees in partition cases in certain circumstances (for example, if a contract or statute allows fees, or in equities where the court finds it appropriate). Ask an attorney about the likelihood of fee awards in your case.

6. What about mortgages, liens, and occupancy?

Liens and mortgages generally must be paid from sale proceeds in priority order. If one co-owner has been collecting rents or occupying the property exclusively, the court can account for rents, expenses, and improvements when dividing proceeds. If a co-owner is in wrongful possession, that can affect the distribution and may justify an offset.

7. Timeframe and practical timeline

Partition actions can take months to more than a year depending on complexity: locating parties, discovery, contested issues (title disputes, encumbrances), and the time needed to market and sell real estate. Expect litigation, valuation, and sale steps to add time compared to a negotiated buyout.

8. Alternatives to immediate court action

Before filing, consider these options:

  • Propose a written buyout valuation and deadline.
  • Mediation or neutral valuation (appraisal and buy/sell process run by an escrow agent or mediator).
  • Sell the property by agreement and divide the proceeds outside court.

9. Example hypothetical

Hypothetical: Three siblings own a rental house as tenants in common. One sibling wants out and offers to sell their share to the others. The others refuse to buy. The sibling files a partition action in Denver District Court, asks the court to order sale, and requests appointment of commissioners. The court finds in-kind division impractical, orders sale, pays off the mortgage and back taxes from the sale proceeds, deducts sale costs and commissioners’ fees, and distributes the remainder based on ownership shares after accounting for any allowable offsets (for unpaid rents or improvements).

Helpful hints

  • Gather proof of title documents (deeds, chain of title), mortgage statements, tax bills, and records of expenses and rents before filing.
  • Get a professional appraisal early to support valuation. A neutral market value narrows disputes and speeds resolution.
  • Try a written buyout proposal with a clear valuation and deadline; courts look favorably on reasonable settlement efforts.
  • Consider mediation before or after filing to save time and fees. Courts often encourage ADR (alternative dispute resolution).
  • Understand who holds mortgages or liens—secured creditors may have priority at sale and can complicate net proceeds.
  • Keep records of any improvements, repairs, or payments of taxes. The court may credit the owner who paid or who contributed labor/materials.
  • Expect costs: filing fees, service fees, appraisal and commissioner fees, sale costs, and attorneys’ fees. These typically come out of the sale proceeds.
  • If one co-owner is in exclusive possession, talk to an attorney about seeking an accounting for rents and expenses.
  • Ask whether your title insurer or mortgage lender needs notice; lenders sometimes have rights or require payoff procedures on sale.
  • Tax consequences: sale proceeds may produce capital gains or other tax obligations. Consult a tax advisor about estimated taxes on sale proceeds.

Disclaimer: This article explains general Colorado principles about partition actions and is for educational purposes only. It is not legal advice. Laws change and facts matter. To understand how the law applies to your exact situation, consult a licensed Colorado attorney.

Colorado statutes (searchable): https://leg.colorado.gov/colorado-revised-statutes

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.