Disclaimer: This information is educational only and is not legal advice. Consult a licensed Georgia attorney about your specific situation.
Detailed answer — How a co-owner can get money instead of the physical property under Georgia law
When two or more people own the same property in Georgia, each co-owner may prefer money rather than a share of the actual property. Georgia law provides routes to convert a co-owner’s interest into cash. The main methods are: (1) a voluntary buyout by agreement among the co-owners; or (2) a court-ordered partition by sale (rather than partition in kind). See O.C.G.A. Title 44, Chapter 6 for Georgia’s partition statutes: https://www.legis.ga.gov/legislation/ocga/44/6.
1. Voluntary buyout (best, fastest, least expensive)
Steps:
- Get a current market valuation. Hire a licensed real estate appraiser or get a broker’s market analysis.
- Negotiate a buyout price. Co-owners can agree that one owner will pay the others the fair market value of their shares, minus mortgages, liens, or agreed credits for repairs or improvements.
- Document the agreement in writing. Prepare a written buyout agreement and, when funds change hands, record any necessary deed changes with the county clerk to clear title (if one owner buys out the rest).
Advantages: speed, privacy, control over price and closing terms, and avoidance of court fees. If co-owners can agree on numbers and sign documents, a buyout is usually the simplest way to convert an ownership interest into cash.
2. Court-ordered partition by sale (when co-owners disagree)
If co-owners cannot agree, Georgia law allows a co-owner to file a partition action in the appropriate superior court. The court may order partition in kind (dividing the property) if practicable, or, if division is not practicable or equitable, order a partition by sale and distribute proceeds among the owners. For the statutory framework, see O.C.G.A. Title 44, Chapter 6: https://www.legis.ga.gov/legislation/ocga/44/6.
Typical partition-by-sale process in Georgia:
- A co-owner files a petition for partition in the Superior Court and serves the other owners and interested lienholders.
- The court may appoint a commissioner to handle appraisal, notices, and sale logistics.
- If the court finds partition in kind impracticable or inequitable (for example, a single-family house on one lot frequently cannot be fairly split), it will order sale at public auction or by private sale under court supervision.
- After sale, the court (or commissioner) pays liens, costs, and mortgages from the sale proceeds, then divides the net proceeds among co-owners according to their ownership shares, adjusting for any court-ordered credits or debits (e.g., payments for improvements or waste).
Practical points:
- Partition actions take time and carry court costs and attorney fees. Courts sometimes award costs or attorney fees to the party who substantially prevails, depending on the conduct of the parties.
- The court will account for mortgages, recorded liens, and valid claims against the property before dividing net proceeds.
- If a co-owner wants cash immediately, the court process can be slow; consider negotiating a temporary buyout or bridging loan while the case proceeds.
3. Accounting for contributions, improvements, and debts
When converting ownership interest to cash, both voluntary buyouts and partition proceedings typically consider:
- Outstanding mortgages and liens—these are paid from sale proceeds before owners share remaining funds.
- Contributions to purchase price and mortgage payments—co-owners who paid more may claim equitable credits.
- Costs for improvements or necessary repairs—courts may award reimbursement or offset against a share, depending on proof.
- Waste or improper conduct—if a co-owner damaged or improperly used the property, the court can adjust distribution to remedy unjust enrichment.
4. Valuation and appraisal
Accurate valuation is critical. Use a licensed appraiser to establish market value. In contested matters, the court or commissioner may order one or more appraisals. If owners disagree on appraised value, the court may average appraisals or rely on testimony and evidence at a hearing.
5. Practical example (hypothetical)
Two co-owners each hold 50% of a rental house. Co-owner A wants cash; Co-owner B wants to keep the house. Market value is $300,000 and mortgage balance is $60,000. A fair buyout price for B to pay A would be roughly A’s 50% share of the net equity: (300,000 – 60,000) = 240,000 net equity; A’s share = 120,000, adjusted for credits (repairs paid by either party) and closing costs. If B cannot pay, A could file for partition; the court could order sale and divide net proceeds after liens and costs, delivering A approximately $120,000 (subject to adjustments and litigation costs).
6. When to hire an attorney
Consider hiring a Georgia attorney if:
- Co-owners cannot agree on value or terms;
- There are liens, mortgages, or title disputes;
- One party threatens waste, removal of fixtures, or covert transfers;
- You need help drafting a buyout agreement, ensuring closing documents clear title, or handling court procedures for a partition action.
An attorney can prepare or review buyout agreements, handle negotiations, file a partition petition, request relief from the court, and protect your financial interests during settlement or sale.
Helpful hints
- Start with an appraisal before negotiating. A neutral valuation reduces conflict.
- Try negotiating a written buyout first — it usually costs far less than litigation.
- Get lien and title searches so you know the mortgage balance and recorded encumbrances before agreeing on amounts.
- Document all payments, improvements, and expenses related to the property to support any credits or reimbursements.
- Keep communication professional and in writing. Clear records help if you later go to court.
- Understand that a court-ordered sale may mean a public auction or court-supervised private sale; proceeds are split after costs and liens.
- Ask about mediation — some Georgia courts encourage or require mediation in partition disputes to promote settlement.
Relevant statute overview (for further reading): review Georgia’s partition statutes under O.C.G.A. Title 44, Chapter 6 at https://www.legis.ga.gov/legislation/ocga/44/6.
Final reminder: This article explains general Georgia procedures and options but is not legal advice. For tailored guidance, contact a Georgia-licensed attorney familiar with property and partition cases in your county’s superior court.