Detailed Answer
When co-owners of Illinois real estate cannot agree on a buyout price, several paths exist to resolve the dispute. You may pursue voluntary methods first. If those fail, Illinois law provides a court-ordered partition or sale under the Illinois Code of Civil Procedure. Below is an overview of your main options:
1. Voluntary Negotiation
You and your co-owner can negotiate directly. You might hire an independent real estate agent or attorney to guide the discussion. Agreeing on a price avoids court costs and delays. Put any agreement in writing.
2. Mediation or Alternative Dispute Resolution
Consider mediation. A neutral mediator helps both sides exchange offers in a structured setting. Mediation is private, faster, and often less expensive than litigation. Many county courts offer court-annexed mediation programs.
3. Appraisal and Buy-Sell Agreement
You can jointly hire a licensed appraiser to determine fair market value. Once you have an appraisal, you can draft a buy-sell agreement specifying how one-owner may buy the other owner’s share. This approach creates certainty and can include terms for closing and payment.
4. Court-Ordered Partition or Sale
If voluntary steps do not work, file a partition action in the circuit court where the property lies. Under the Illinois Partition Act (735 ILCS 5/11-101 et seq.), the court can:
- Partition in Kind: Physically divide the property if feasible.
- Partition by Sale: Order a public sale of the entire property and distribute net proceeds among owners according to their ownership shares.
In a partition by sale, the court appoints a commissioner to oversee the sale. The commissioner advertises the property, conducts the sale, and provides a report. After confirmation, the court directs the distribution of proceeds.
5. Appeals and Further Litigation
If either party disputes the commissioner’s report or the court’s ruling, they can file post-judgment motions or appeal. Timelines and procedures follow the Illinois Supreme Court Rules.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Illinois attorney to address your specific situation.
Helpful Hints
- Start discussions early to avoid costly litigation.
- Document all offers, counter-offers, and negotiations in writing.
- Use a neutral appraiser to establish market value.
- Consider mediation before filing a partition suit.
- Review local court rules for filing fees and deadlines.
- Understand that a court-ordered sale may take several months to complete.