Detailed Answer
When co-owners of real property in Georgia cannot agree on a fair buyout price, state law provides structured remedies. You can attempt voluntary methods first. If those fail, you can file a partition action in court to force either a division of the property or its sale. Below are the main options under Georgia law.
1. Negotiation and Independent Appraisals
• Each co-owner hires a licensed appraiser to determine market value.
• Compare appraisal reports and negotiate a buyout price.
• Use the average or a mutually acceptable midpoint to finalize the transaction.
2. Mediation or Alternative Dispute Resolution
• Engage a neutral mediator to facilitate a settlement.
• Draft a binding settlement agreement setting the buyout price and payment terms.
3. Filing a Partition Action in Court
If voluntary methods fail, any co-owner may file a partition complaint in the superior court of the county where the property lies. Georgia’s partition statutes (O.C.G.A. § 44-2-1 et seq.) govern these actions:
Partition in Kind
• The court divides the property into separate physical parcels proportionate to each owner’s interest. (O.C.G.A. § 44-2-4: law.justia.com/codes/georgia/2020/title-44/chapter-2/section-44-2-4/)
• This method works best when the land can be subdivided without substantially reducing value.
Partition by Sale
• If the court finds in-kind division impractical or unfair, it orders a public sale of the entire property. (O.C.G.A. § 44-2-5: law.justia.com/codes/georgia/2020/title-44/chapter-2/section-44-2-5/)
• Net sale proceeds get distributed among owners based on their ownership shares.
Valuation and Distribution
• The court may empanel a jury to assess fair market value. (O.C.G.A. § 44-2-7: law.justia.com/codes/georgia/2020/title-44/chapter-2/section-44-2-7/)
• After sale, the clerk calculates each owner’s share and issues distribution orders.
Helpful Hints
- Early appraisals can narrow valuation gaps and reduce litigation cost.
- Keep communication records—emails or letters—documenting settlement efforts.
- Review title documents to confirm each owner’s percentage interest before filing.
- Consult a real estate attorney to ensure procedural compliance with O.C.G.A. § 44-2-1 et seq.
- Consider escrow arrangements for secure handling of sale proceeds.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Georgia to discuss your specific situation.