Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When co-owners of real estate in Delaware cannot agree on sale logistics or cost sharing, they still have legal pathways to resolve disputes. Delaware law generally treats co-owners as tenants in common. Each owns an undivided interest and bears a share of expenses such as taxes, maintenance, and improvements.
1. Negotiation and Mediation
Start by discussing differences in good faith. If direct talks stall, hire a neutral mediator. Mediation often proves faster and less costly than court. You retain control over outcomes and avoid lengthy litigation.
2. Buyout Agreement
One co-owner may offer to purchase the others’ interests at an agreed price. You can use an independent appraisal to establish fair market value. Document all terms in writing to prevent future misunderstandings.
3. Partition Action
If negotiations fail, any co-owner can file a partition action in Delaware Court of Chancery. Under 25 Del. C. § 3302, the court may:
- Order a physical division of property (partition in kind) if feasible.
- Order a sale of the entire property and distribution of proceeds if division would harm equitable interests.
The court may also allocate sale costs and ongoing expenses among parties based on their ownership shares.
4. Equitable Contribution
Delaware courts recognize equitable contribution when one co-owner pays disproportionate expenses. You can sue for reimbursement of your share of taxes, mortgage payments, and other necessary costs under common-law principles.
5. Court-Ordered Sale
As part of a partition action, the Court of Chancery can appoint a commissioner to sell the property. The court then distributes net sale proceeds to co-owners according to their ownership percentage. See 25 Del. C. Chapter 33.
Helpful Hints
- Keep clear records of all payments and improvements made to the property.
- Obtain and share an independent appraisal to set fair market value.
- Consider mediation or arbitration clauses in future co-ownership agreements.
- Communicate regularly and document agreements in writing.
- Consult a qualified Delaware attorney early to assess your rights and options.