Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
When co-owners of property in Florida cannot agree on a buyout price, Florida law provides both out-of-court solutions and court-ordered remedies.
1. Negotiation and Valuation
Co-owners can first agree to hire a neutral certified appraiser. An appraisal establishes fair market value and creates an objective basis for buyout offers.
2. Mediation or Arbitration
Parties may choose mediation or arbitration under the Florida Rules for Certified and Court-Appointed Mediators. A mediator or arbitrator helps resolve disputes without litigation. While voluntary, these processes can be faster and less expensive than court.
3. Partition Action
If out-of-court methods fail, any co-owner can file a partition action under Florida Statutes § 64.011. The court reviews whether to:
- Partition in kind: Divide the property into distinct portions, allotting each party a share proportionate to their interest.
- Partition by sale: Order a public sale of the entire property and distribute proceeds among co-owners.
Per Florida Statutes § 64.011: “Subject to the provisions of this chapter, partition may be effected either by dividing the real property … or by sale of the property …” (Fla. Stat. § 64.011).
The court may appoint commissioners to manage appraisal, division, or sale. If a physical partition would materially reduce the value, the court typically orders a sale.
4. Homestead and Special Considerations
Florida homestead protections may limit forced sale of a primary residence if one owner is a spouse or minor child. See Fla. Stat. § 62.081.
Helpful Hints
- Obtain a professional appraisal early to set clear expectations.
- Consider mediation to preserve relationships and reduce legal costs.
- Review any co-ownership agreement for buyout clauses or dispute resolution terms.
- Consult with an attorney about homestead or tenancy protections.
- Prepare for court fees and possible sale expenses if partition is ordered.