Florida: Negotiating a Buyout With a Co-Owner Instead of a Partition Action | Florida Partition Actions | FastCounsel
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Florida: Negotiating a Buyout With a Co-Owner Instead of a Partition Action

August 14, 2025 5 min read

Short answer

Yes. In Florida, co-owners may negotiate a buyout of one owner’s interest instead of filing or defending a court partition action. Many co-owners resolve ownership disputes by agreement because a negotiated buyout is usually faster, cheaper, and gives both sides more control over the outcome than a court-ordered partition or sale. However, certain legal protections (for example, homestead status or tenancy-by-the-entireties ownership) and existing mortgage or lien obligations can affect whether a buyout is feasible and how it must be structured.

How partition works in Florida (why a buyout is often preferable)

Under Florida law, any joint owner may ask a court to partition property if co-owners cannot agree. The court can order a physical division (partition in kind) when feasible, or a sale with proceeds divided among owners (partition by sale). See Florida Statutes, Chapter 64 for the statutory framework and procedures: https://www.flsenate.gov/Laws/Statutes/2024/Chapter64.

Partition litigation can be unpredictable: courts may order a sale at auction or appoint commissioners, and fees, costs, and delay can reduce the ultimate proceeds. A voluntary buyout lets owners agree on value, timing, and terms—avoiding adversarial litigation.

Practical steps to negotiate a buyout in Florida

  1. Confirm ownership type and encumbrances. Check the deed to see how title is held (tenants in common, joint tenancy, or tenancy by the entireties). If the property is homestead or held as tenancy by the entireties (common for married couples), different legal rules or protections may apply; those issues can block or complicate forced partition and may affect buyout options.
  2. Get a neutral market valuation. Hire a licensed real estate appraiser or obtain a broker’s market analysis so you and the co-owner have a realistic baseline value. Use that value to calculate each owner’s share (for example, 50% of appraised value if ownership is equal).
  3. Decide who buys and on what terms. The co-owner buying the interest can pay cash at closing, pay over time (seller-financed note), or refinance the property to take out the other owner’s equity. If a mortgage exists, contact the lender—loan terms or due-on-sale clauses may require payoff or lender approval.
  4. Prepare clear written documents. Use a written purchase agreement that describes purchase price, closing date, deed type (warranty deed or quitclaim), escrow instructions, title insurance, and releases. At closing the buying party should record the deed and obtain a written release of claims from the selling co-owner.
  5. Title work and closing. Order a title search and purchase title insurance if possible. Use a licensed title company or closing attorney to handle escrow and recording to ensure a clean transfer and release of claims.
  6. Address tax and financial consequences. Florida has no state income tax, but federal capital gains or other federal tax consequences may apply to the seller. Consult a tax professional before closing.

What to watch for—legal and practical pitfalls

  • Homestead and tenancy-by-the-entireties protections can restrict forced sale and may affect a co-owner’s ability to transfer or be forced out. If homestead or entireties ownership is involved, get legal advice.
  • If there are mortgages or liens, you must address how the buyer will handle them. Lender consent may be required if debt will remain on the property or if a party is removed from title but remains liable on the loan.
  • An undervalued buyout can create future disputes. Use an independent appraisal and consider including an appraisal dispute resolution procedure in the agreement.
  • A poorly drafted deed or missing release language can leave the seller exposed to claims. Use an attorney or experienced closing agent to prepare and record documents.
  • If the co-owner refuses to negotiate, you may still have the right to ask the court for partition under Florida law (Chapter 64), which can force a sale or division of the property.

When you should involve an attorney

Consult a Florida real estate attorney if any of the following apply: homestead or tenancy-by-the-entireties issues; contested ownership shares; significant mortgages or liens; complex tax consequences; an unwilling or hostile co-owner; or if you want help drafting enforceable buyout documents. An attorney can help ensure the agreement complies with Florida requirements and that deeds and releases are properly recorded.

Where to read the law

Partition actions and procedures are governed by Chapter 64 of the Florida Statutes. For the statutory text, see: https://www.flsenate.gov/Laws/Statutes/2024/Chapter64.

Disclaimer

This article is for general informational purposes only and is not legal advice. It does not create an attorney-client relationship. Laws change and every case turns on its facts; consult a licensed Florida attorney to get advice tailored to your situation.

Helpful Hints

  • Start by getting a written appraisal so negotiations base on a credible number.
  • Put every agreement in writing. Oral promises are hard to enforce later.
  • Use escrow for deposits and closing funds to reduce risk.
  • Confirm whether mortgage lenders require payoff or consent to avoid surprises at closing.
  • Consider mediation if talks stall—mediators help preserve relationships and avoid court costs.
  • Keep records of all communications and financial transactions related to the buyout.
  • If you suspect the property is homestead or owned as tenancy by the entireties, get legal advice early; those classifications change your options.

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.