Delaware: Forcing the Sale of Co-Owned Property When Mediation Fails | Delaware Partition Actions | FastCounsel
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Delaware: Forcing the Sale of Co-Owned Property When Mediation Fails

What to do if a co-owner blocks a sale and refuses further mediation

Disclaimer: This is educational information only and not legal advice. For legal advice about your specific situation, consult a licensed Delaware attorney.

Detailed Answer — How the legal process generally works in Delaware

If you co-own real property in Delaware and discussions or mediation have broken down, the usual legal remedy is a partition action. A partition action asks a court to divide the ownership interests or order the property sold and the proceeds divided among owners. Partition is an equitable remedy that forces a final disposition when co-owners cannot agree.

What a partition action can ask the court to do

  • Order a physical division (partition in kind) if the property can be fairly divided without materially reducing value.
  • Order a sale of the property (partition by sale) if division in kind is impractical or would be unfair.
  • Appoint a commissioner, master, or sheriff to supervise valuation and sale.
  • Allocate proceeds after paying liens, mortgages, taxes, sale costs, and any credits for unequal contributions.

Where and how to start

Begin by consulting a Delaware real property attorney. If you proceed, a lawyer will prepare and file a complaint for partition in the appropriate Delaware trial court and serve the co-owner(s). The complaint will describe ownership interests and ask the court to partition the property or order a sale.

Evidence and documents you will need

  • Deed(s) and title documents showing ownership shares.
  • Mortgage, lien, and tax records affecting the property.
  • Records of payments (mortgage, property taxes, utilities) and improvements made by each co-owner.
  • Any written agreements about ownership, use, or buyout terms.
  • Recent valuations or appraisal reports, if available.

What the court considers

The court will consider whether a fair division in kind is practical; whether a sale will maximize value; liens; contributions by each owner; and any other equitable factors (like waste, exclusive possession, or contract terms among owners). The court can also resolve disputes about accounting for expenses and credits.

Timing and costs

Partition cases often take several months to over a year depending on issues like title disputes, complex accounting, or appeals. Costs commonly include filing fees, attorney fees, appraisal and broker fees, and costs for the sale. The court may allocate costs between owners in its discretion.

Alternatives and interim relief

  • Offer a buyout: propose purchasing the other owner’s share or offer a cash settlement.
  • Negotiate terms for selling to a third-party without court intervention.
  • Ask the court for temporary orders (e.g., who pays taxes and insurance, who receives rental income) while the case proceeds.
  • Consider non-judicial remedies if your ownership agreement contains a buy-sell clause or other dispute-resolution method.

Practical note about mediation refusal

Refusing mediation does not prevent you from filing a partition action. Courts sometimes encourage or require mediation, but they also have authority to decide the dispute and order a sale if voluntary resolution fails.

Where to get Delaware-specific legal information

General Delaware court information: courts.delaware.gov. For the Delaware Code and statutes: delcode.delaware.gov. A local attorney can point to any statutory provisions that apply to your situation and to any court rules that affect the procedure.

Helpful Hints

  • Document everything now: keep copies of deeds, receipts, ledgers of payments, repair invoices, and correspondence about the property.
  • Get a current market appraisal before filing; it helps estimate likely sale value and supports settlement talks.
  • Consider a formal buyout offer in writing — courts often view reasonable offers to buy as evidence you tried to resolve the dispute without litigation.
  • Preserve evidence of unequal financial contributions (mortgage payments, tax payments, improvements) — the court can credit contributions when dividing proceeds.
  • Prepare for interim disputes: ask your attorney about temporary injunctions or orders for payment of taxes, insurance, or rent collection while the case is pending.
  • Ask your attorney about the most appropriate court to file in for your facts — different courts handle equitable matters versus certain types of claims.
  • Be realistic about costs: litigation may reduce net proceeds; sometimes negotiated sale or buyout yields the best financial result.
  • Discuss tax implications with a tax professional — a forced sale or buyout can create capital gains consequences for each owner.

If you decide to move forward, contact a Delaware real estate attorney promptly to review your documents, explain your options in detail, and prepare any necessary court filings.

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.