Detailed Answer
When co-owners of real property in Colorado cannot agree on sale logistics or cost sharing, the Colorado Uniform Partition of Property Act (C.R.S. § 38-31-101 et seq.) gives each owner an individual right to force a court-supervised division or sale of the property. Partition actions help allocate proceeds, costs, and expenses among co-owners fairly.
1. Voluntary Buyout or Agreement
Before filing a lawsuit, co-owners often negotiate a buyout. One owner purchases the other owner’s share at an agreed price. This approach avoids court fees, attorneys’ fees, and the uncertainty of a forced sale.
2. Mediation or Arbitration
If parties cannot agree directly, mediation provides a neutral forum to resolve disputes about sale method, timeline, cost allocation, and distribution of net proceeds. Arbitration can produce a binding decision on logistics and cost sharing without going to a public courthouse.
3. Partition Action in District Court
When negotiation fails, any co-owner may file a partition action in the county district court where the property lies (C.R.S. § 38-31-101). The court examines whether to divide the land physically (partition in kind) or sell it and split the proceeds (partition by sale).
- Partition in Kind: Court orders a physical division if practical and equitable. Each owner ends up with a separate parcel.
- Partition by Sale: If land cannot be fairly divided (e.g., a single-family home on a small lot), the court orders a public sale. Net proceeds go to co-owners based on ownership interests after deducting expenses (C.R.S. § 38-31-106).
4. Allocation of Costs
In a partition action, the court apportions costs and expenses among co-owners, including:
- Advertising, auctioneer, and brokerage fees related to the sale
- Court filing fees and reporter costs
- Real estate taxes, mortgages, and liens paid off at closing
- Attorney’s fees, if the court finds it equitable (C.R.S. § 38-31-110)
5. Right to Contribution for Expenses
If one co-owner pays taxes, insurance, maintenance, or mortgage installments for the property, Colorado courts allow that co-owner to seek reimbursement from other co-owners in a separate equity action. This ensures fair sharing of carrying costs until sale (see Clark v. Cladek, 154 P.3d 507 (Colo. App. 2006)).
6. Timeline and Final Distribution
Once the court approves sale logistics, the property is marketed and sold—often at public auction. After closing, the clerk distributes net proceeds and any reimbursements according to ownership shares and court orders regarding costs.
Key Statutes:
Colorado Uniform Partition of Property Act, C.R.S. § 38-31-101 et seq. (https://law.justia.com/codes/colorado/2021/title-38/38-31/)
Reimbursement of Costs: C.R.S. § 38-31-106 (https://law.justia.com/codes/colorado/2021/title-38/38-31/38-31-106/)
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation under Colorado law.
Helpful Hints
- Review your deed or operating agreement to confirm ownership shares.
- Try negotiation or mediation before resorting to court.
- Gather records of payments for taxes, insurance, or improvements.
- Consult a real estate attorney experienced in partition actions.
- Act promptly—partition actions can take several months.