How can a co-owner obtain monetary compensation instead of receiving physical property? (FL)

Detailed Answer — How a co-owner obtains money instead of physical property (Florida)

When two or more people own real estate together, they commonly hold title as tenants in common or joint tenants. If one co-owner wants cash instead of a piece of the land or building, there are three common paths under Florida law:

1. Private agreement (voluntary buyout or sale).

   The simplest option is a negotiated solution: co-owners agree that one will buy out the other(s), or they agree to sell the whole property to a third party and split net proceeds. Typically the parties hire an independent appraisal or obtain competing appraisals and negotiate a buyout price or sale terms. A written agreement should specify price, payment terms, responsibility for closing costs, allocation of mortgage payoff and liens, and any adjustments for improvements or unequal contributions.

2. Partition action in court requesting sale (partition by sale).

   If co-owners cannot agree, Florida law allows a co-owner to file a partition action in circuit court to divide property or, when division in kind is impractical, to force a sale and distribute the proceeds. Florida’s partition statutes govern this process; the court favors partition in kind (physically dividing the property) when practicable but will order a sale where division would be prejudicial or impractical. See Florida Statutes, Chapter 64 (Partition) for statutory procedures and remedies: Florida Statutes — Chapter 64 (Partition).

   Key steps in a partition-by-sale:

   • A co-owner files a partition complaint in the county circuit court where the property sits.
   • The court determines whether partition in kind is feasible. If not, the court orders a sale of the entire property.
   • The court supervises the sale (often appointing commissioners or a special master) and directs how net proceeds will be divided according to each owner’s legal share, subject to liens and mortgages that must be paid from the proceeds first.
3. Negotiated buyout using appraisal, mediation, or court-ordered accounting.

   Even after a partition suit begins, parties can settle. Mediation or court-ordered settlement conferences often produce a buyout: one owner purchases the other’s interest for a negotiated price (often based on appraised value less debts and sale costs). If co-owners disagree over contributions (repairs, mortgage payments, improvements), the court can order an accounting so the payout reflects credits and debits before the final cash distribution.

How the court determines the cash amount on sale

If the court orders a sale, the practical math usually looks like this:

Gross sale price — outstanding mortgages and liens — sale costs (commissions, closing costs, court/commissioner fees) = net sale proceeds. Each co-owner receives a share of the net proceeds proportional to their legal ownership percentage unless the court adjusts shares for equitable reasons (contributions, waste, or improvements).

Important legal points and limitations

• Tenancy type matters. Tenancy in common and joint tenancy owners can pursue partition. Some ownership arrangements (for example, tenancy by the entireties between spouses) may not be subject to partition in the same way; marital and contractual protections can limit remedies.
• Liens and mortgages attach to the property. Creditors are paid from sale proceeds before co-owners split the remainder.
• The court prefers partition in kind when practical. A co-owner seeking cash must show that dividing the physical property is impractical or inequitable to get a forced sale.
• Costs and delays: Partition litigation may take months, sometimes longer. Court costs, appraisals, title work, and attorneys’ fees (if awarded) reduce net proceeds.

Example (hypothetical)

Two co-owners hold a 50/50 share in a house appraised at $300,000. The mortgage balance is $60,000. If the court orders sale and the house sells for $300,000, assume closing costs and commissions total $24,000. Net proceeds = $300,000 − $60,000 − $24,000 = $216,000. Each co-owner’s cash share = $108,000, subject to any court-ordered offsets for unequal contributions or improvements.

Where to find the statute: Florida’s partition law is in Chapter 64 of the Florida Statutes. See: Florida Statutes — Chapter 64 (Partition). For court procedural questions or forms, consult the Florida State Courts website: Florida State Courts.

Disclaimer: This information is educational only and does not constitute legal advice. Consult a licensed Florida attorney for guidance specific to your situation.

Helpful Hints — Steps to speed a cash outcome and protect value

• Obtain a current, independent appraisal to establish fair market value.
• Ask for a written buyout offer; document negotiations and keep records of contributions and expenses related to the property.
• Check title and lien status early — unpaid taxes or liens reduce what you receive.
• Consider mediation before filing suit. Courts often require or encourage settlement attempts, and mediation saves time and costs.
• If filing for partition, be prepared for a court-appointed commissioner, appraisal disputes, and costs that reduce net proceeds.
• Get an attorney experienced in Florida partition cases to protect your share and help with accounting for unequal contributions or improvements.
• Ask your tax advisor about tax consequences (capital gains, basis adjustments) before completing a buyout or sale.
• If you are married or the title form is unclear, confirm the tenancy type — marital ownership may affect remedies.

If you want help locating a Florida attorney who handles partition or co-ownership disputes, a local bar referral service or the Florida State Courts Website can point you to resources and self-help information.

Reminder: This article is informational only and does not create an attorney-client relationship. For legal advice tailored to your facts, consult a licensed attorney in Florida.