Detailed Answer
This article explains how a co-owner can force the sale of real property in Indiana when a co-owner refuses further mediation. It describes the common legal route called a partition action, alternatives you can try first, what the court can order, and practical steps to prepare.
What is a partition action?
A partition action is a civil lawsuit that asks the court to divide or sell property owned by two or more people. If the court determines the property cannot be fairly divided among the owners, it may order a sale and divide the proceeds among the owners according to their ownership shares. Indiana addresses property and partition through the state statutes governing property law (see Indiana Code Title 32 – Property: https://iga.in.gov/laws/2024/ic/titles/032).
When can you use a partition action?
- Two or more people hold legal title to the same real property (tenancy in common or joint tenancy).
- One co-owner wants to end co-ownership and either divide the property physically or force a sale.
- Negotiation and mediation have failed or a co-owner refuses to continue mediation.
Typical steps to force a sale in Indiana
- Attempt a last reasonable settlement. Before filing suit, send a written demand offering to buy out the co-owner at a fair price or proposing a timetable for sale. Keep records of offers and refusals. A judge will expect that you tried to settle first.
- Gather documents and evidence. Assemble the deed(s), mortgage information, leases, tax bills, expense records, and any written agreements among owners. Get a recent appraisal or broker price opinion to establish market value.
- File a partition complaint in the proper court. You (or your attorney) file a Complaint for Partition in the county court where the property is located. The complaint names all co-owners and any lienholders (mortgagees). The court will issue process and you will usually record a lis pendens to put the world on notice of the pending action.
- Provide notice to all interested parties. The court requires notice to all owners and lienholders so they can defend or assert their rights.
- Court determines whether partition in kind is practicable. The judge will consider whether the property can be physically divided fairly (partition in kind). For most single-family homes or small parcels, in-kind division is impractical. If in-kind division is impractical or inequitable, the court will order a sale.
- Court orders sale and appoints a commissioner or officer to sell. Indiana courts typically appoint a commissioner, sheriff, or other officer to conduct the sale. The sale can be a public auction or a private sale subject to court approval. The court will set terms, handle notice of sale, and approve sale results.
- Sale proceeds pay liens, costs, and distributions to owners. After the sale, mortgage liens, taxes, sale costs, court costs, and any other priority claims are paid. Remaining proceeds are distributed according to ownership shares.
- Possible buyout before sale. During the process a co-owner may choose to buy out the others by paying their share of the appraised or agreed value. If you want to keep the property, be prepared with financing options.
Practical notes about mortgages, liens, and liens holders
If the property has a mortgage, the lender’s lien survives and must be paid from sale proceeds or addressed by the buyer. A lender may have rights affecting the timing and process of sale. That is why the complaint should name all lienholders so the court can make a complete distribution of proceeds.
Timing and costs
Timeframe varies by county and complexity. Expect several months to more than a year in some cases. Court fees, sheriff or commissioner costs, appraisal fees, and attorney fees will reduce net proceeds. The court may order which party bears certain costs, but attorney fees are not always shifted.
When the other co-owner refuses mediation
Refusal to mediate does not block your right to file a partition action. Courts favor settlement, so documenting that you attempted mediation and offered reasonable alternatives helps your case. If a co-owner refuses mediation, proceed with the steps above and let the court decide the appropriate remedy.
Relevant Indiana law
Indiana state law provides the framework for property and partition actions under the statutes that govern property rights and court procedures. See Indiana Code Title 32 – Property for governing provisions and related chapters: https://iga.in.gov/laws/2024/ic/titles/032. For procedural rules and local court practice, consult the county court rules and the Indiana court system resources.
When to hire an attorney
Partition actions raise factual and procedural issues (ownership shares, liens, valuation, valuation disputes, strategic settlement offers, and court procedure). Consider hiring an attorney licensed in Indiana if the other side disputes ownership shares, if liens exist, or if you need help with drafting pleadings, serving interested parties, and managing the sale process. An attorney can also advise on tax implications of a sale and distribution of proceeds.
Helpful Hints
- Get a current appraisal or broker price opinion early.
- Document all attempts to negotiate or mediate; courts like a record of good-faith settlement efforts.
- Make a written demand offering a buyout and give a reasonable deadline before filing suit.
- List and locate all lienholders and tenants; name them in the complaint so the court can resolve their claims.
- Consider whether refinancing or obtaining a loan to buy out co-owners is cheaper than litigation.
- Expect that unpaid property taxes and mortgages must be paid from sale proceeds before owners get distributions.
- Be prepared for costs: court fees, appraisal fees, advertising and sale costs, and possible attorney fees.
- Ask the court for a private sale if a public auction will likely produce a low return; courts sometimes approve negotiated sales if terms are fair and notice rules are followed.
- Keep communication civil. Even minimal cooperation (access for showings or appraisals) speeds the process and reduces costs.
Disclaimer: This information is educational only and not legal advice. It does not create an attorney-client relationship. For advice about a specific situation, consult a lawyer licensed in Indiana who can review facts and local court rules.