Detailed Answer
Under Idaho law, co-owners can force a partition of real property under Idaho Code Title 6, Chapter 5 (§6-501 et seq.). When the court orders a sale, the property sells subject to mortgage liens. Idaho Code §6-503 directs that sale proceeds first satisfy outstanding mortgages, liens, court costs, and commission fees. The remaining net proceeds divide among co-owners according to their ownership interests.
Mortgages are liens governed by Idaho Code Title 45, Chapter 15 (§45-1501 et seq.). Senior lienholders receive payment before junior lienholders and co-owners. If a single mortgage covers the entire property, all co-owners share liability unless they contractually agree otherwise. At a partition sale, the court clerk or commissioner applies proceeds to mortgages in priority order, deducts sale expenses, then distributes any surplus.
Example: Two siblings own land equally. A $100,000 first mortgage encumbers the whole parcel. The court orders a sale at $250,000. After paying the mortgage and $10,000 in costs, net proceeds of $140,000 remain. Each sibling receives $70,000.
If multiple mortgages exist, the sale pays them in descending priority. A junior lienholder may receive nothing if proceeds fall short after senior liens. Co-owners then split any remaining balance per their ownership shares.
Co-owners can protect individual interests by filing statements of lien under Idaho Code §45-1505. They may also negotiate buy-outs, refinance mortgages, or adjust co-ownership interests before sale to maximize proceeds.
Disclaimer: This article provides general information under Idaho law. It does not constitute legal advice. Consult a licensed attorney for guidance.
Helpful Hints
- Identify all mortgage liens before initiating partition.
- Verify lien priority: senior liens take precedence.
- Estimate sale costs (commissions, fees) to gauge net proceeds.
- Review any co-ownership agreement or mortgage allocation terms.
- Consider paying down or refinancing liens to boost your share.
- Follow statutory steps under Idaho Code Title 6, Chapter 5 for partition actions.