Detailed Answer
If you own real property in Hawaii with two other co-owners and you cannot reach an agreement about keeping, dividing, or selling the property, you can ask a court to resolve the dispute through a partition action. Under Hawaii law, a partition action allows one or more co-owners to ask the court either to physically divide the property (partition in kind) or, when division is impractical or inequitable, to order the property sold and to distribute the proceeds among the owners.
Legal basis in Hawaii
Hawaii’s laws that govern partition actions are found in the Hawaii Revised Statutes (see Chapter 669). For the statutory framework, see the Hawaii Revised Statutes, Chapter 669: HRS Ch. 669 (Partition). The chapter explains who may bring a partition action, the court’s powers, and how a sale or division can be carried out.
How a partition action generally works (step-by-step)
- Who may file: Any co-owner (for example, a tenant in common) may file a civil complaint asking the circuit court for partition of the property. (If title is held as joint tenants with right of survivorship, transfer on death rules may affect interests; consult an attorney about title type.)
- Where to file: File the complaint in the appropriate Hawaii circuit court where the property sits. The complaint must name all necessary parties (all co-owners and any lienholders).
- Service and response: The co-owners and lienholders must be served with the complaint and given an opportunity to respond. They can assert defenses, ask for accounting of rents or expenses, or ask the court to order a sale rather than a division.
- Court determines method: The court will decide whether partition in kind is feasible. If the court finds the property cannot be fairly divided (for example, a single-family house on one lot where division would be impractical), it commonly orders a sale and distribution of proceeds. The statutory scheme in Chapter 669 authorizes these procedures.
- Appointment of commissioner or referee: The court typically appoints a commissioner, referee, or other officer to handle the practical steps (arranging appraisal, marketing, sale, closing, and distribution of funds).
- Payment of debts and distribution: Mortgage liens, tax liens, and valid encumbrances generally must be paid from sale proceeds first. The remaining proceeds are divided among the co-owners according to their ownership shares (or as the court determines if shares are disputed).
What the court considers when ordering a sale
- Whether the property can be physically divided without unfairly harming any owner.
- Whether division would greatly reduce the value of everyone’s interest.
- Relative ownership interests shown by title or evidence.
- Existing liens and mortgages that attach to the property.
- Equitable factors such as improvements paid for by one co-owner, rents or profits collected, and costs paid for maintenance—these can affect the final accounting the court orders.
Practical issues to expect
Timeline: A partition action can take many months and sometimes over a year, depending on court schedules, complexity (liens, contested ownership shares), and whether a sale requires standard marketing and escrow time.
Costs: Court filing fees, appraisal and commissioner fees, attorney fees (if ordered or incurred), and sale costs are typically paid from the proceeds or charged proportionally against owners’ interests.
Mortgages and liens: Any mortgage remains a lien on the property until paid from sale proceeds. A purchaser at the court-ordered sale takes title subject to existing valid liens if they are not paid off by the sale.
Alternatives and opportunities before filing
- Negotiate a buyout: One co-owner may buy out the others based on an agreed appraisal.
- Mediation: Courts often favor settlement. Mediation can be quicker and cheaper than litigation and allow more control over terms.
- Partition by agreement: Co-owners can agree on a private sale or one party’s purchase of others’ interests and document the agreement with deeds and releases.
- Rent or management arrangement: If all agree, the co-owners can create a formal management agreement and postpone sale.
When to get a Hawaii attorney
If you consider filing a partition action or if another co-owner has started one, consult a Hawaii real property attorney. An attorney can help you:
- Confirm type of ownership and each owner’s share.
- Identify liens, mortgages, tax obligations, and other encumbrances.
- Evaluate settlement or buyout offers and prepare or defend a partition complaint.
- Represent you in court and handle the accounting and distribution issues that arise in partition litigation.
Helpful Hints
- Gather title documents (deed), mortgage statements, property tax records, homeowners insurance, and maintenance bills before talking to an attorney.
- Get a current market appraisal or broker price opinion to understand value and support negotiations.
- Consider mediation early. Courts often require or encourage negotiation, and settlement saves time and costs.
- Be realistic about costs: litigation and forced sale fees reduce net proceeds compared with a voluntary sale.
- Check for liens and unpaid taxes first. Those will come off the top of any sale proceeds.
- If you want to remain in possession, document payments of mortgage, taxes, and repairs—courts will consider accounting claims when allocating proceeds.
- Ask your attorney about possible tax consequences of a sale; tax law is separate from partition law and may affect net proceeds.
Resources
Hawaii Revised Statutes, Chapter 669 (Partition): https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0321-0344/HRS0669/
Hawaii State Judiciary (court locations and civil procedure information): https://www.courts.state.hi.us/
Disclaimer: This article explains general legal concepts under Hawaii law for educational purposes only. It is not legal advice and does not create an attorney–client relationship. For advice specific to your situation, consult a licensed Hawaii attorney.