How to Force Sale of a Co-Owned Property in Michigan: Partition Actions and Next Steps | Michigan Partition Actions | FastCounsel
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How to Force Sale of a Co-Owned Property in Michigan: Partition Actions and Next Steps

Detailed Answer

Short answer: In Michigan you can force the sale of jointly owned real property by bringing a court action for partition. If the court finds dividing the land in kind is impractical or unfair, it can order a judicial sale and distribute the proceeds among the owners after paying liens and costs. See Michigan statutes on partition at the state legislature for more detail.

What is a partition action under Michigan law?

A partition action is a civil lawsuit filed to divide real property owned by two or more people when they cannot agree about possession, use, sale, or disposition. Michigan law authorizes courts to either divide the property physically (partition in kind) or to sell it and divide the proceeds (partition by sale).

The controlling statute is MCL 600.2801 et seq.; see the statute text for the procedures and powers of the court: MCL 600.2801.

When will the court order a sale instead of dividing the land?

The court will consider a partition in kind only if it is practical and will not unfairly prejudice any party. If dividing the land fairly is impractical (for example, because of how it is laid out, mortgages, improvements, or unequal interests), the court can order a sale and distribution of proceeds. The court has discretion to appoint a commissioner or referee to handle the sale and distribution. See MCL 600.2804 and related provisions: MCL 600.2804.

Practical step-by-step: How to force a sale in Michigan

  1. Try voluntary resolution first. Offer a buyout, mediation, or sale by agreement. Courts favor private agreements and these save time and cost.
  2. Gather documents and proof of ownership. Collect deeds, mortgages, tax records, insurance, expense records, and any written agreements between co-owners.
  3. File a complaint for partition in the appropriate Michigan court. Partition actions are typically filed in circuit court where the property sits. The complaint names all co-owners and any lienholders as defendants.
  4. Serve the defendants and pursue the case. The court will allow defendants to answer and raise defenses or counterclaims (for example, claims of exclusive ownership or an agreement excluding partition).
  5. Ask for interim relief if needed. You may seek temporary orders to preserve the property (for example, to stop a co-owner from selling their interest, capturing rent, or damage). Filing a lis pendens may protect the title from being transferred pending the action.
  6. Court determines whether partition in kind is possible. If the court finds in-kind division feasible and fair, it may divide the property. If not, the court orders sale and appoints a commissioner/referee to handle the sale process and disbursement of proceeds.
  7. Sale and distribution. The appointed officer conducts the sale (often public auction or court-approved sale). Sale proceeds pay valid liens (mortgages, liens, taxes), costs of sale, and then the remainder is divided among owners according to ownership shares.

The statutes describe the court’s powers in partition and sale procedures. See, for example: MCL 600.2810 (procedural provisions) and other sections within MCL 600.2801–600.2818.

Key legal issues to expect

  • Mortgages and liens: A forced sale is subject to existing mortgages and liens. Lienholders typically must be named in the action and will be paid from sale proceeds before co-owners receive their shares.
  • Costs and credits: The court can allocate costs (attorney fees in limited circumstances), improvements, and contributions among owners. Keep records of payments for mortgage, taxes, insurance, and improvements you made; the court may credit you.
  • Defenses and counterclaims: A co-owner may argue the property is not subject to partition (rare), that another party holds a superior interest, or that a buyout or equitable arrangement is proper.
  • Timing: A partition case can take several months to over a year depending on complexity, disputes, mortgage issues, and court schedules.

When to involve an attorney

If you want to force a sale, an experienced Michigan real property litigation attorney can:

  • Confirm the correct court, properly plead the complaint, and identify all necessary parties and lienholders;
  • File and argue for any necessary temporary relief to prevent dissipation of assets;
  • Handle valuation disputes and negotiate sale terms or buyouts on your behalf;
  • Ensure the commissioner’s sale process complies with court rules and that proceeds are correctly distributed.

Even if mediation has been refused, filing a partition complaint remains the standard legal route to compel sale in Michigan.

Helpful Hints

  • Do not wait to collect documents: deed, chain of title, mortgage statements, tax bills, insurance, receipts for repairs or improvements, and any written co-owner communications.
  • Obtain a professional appraisal early if you hope to negotiate a buyout or demonstrate fair market value to the court.
  • Consider a demand letter and a written buyout offer before filing suit; courts and judges often view good-faith settlement efforts favorably.
  • If a co‑owner is damaging the property or trying to sell without your knowledge, speak with counsel about temporary injunctive relief and filing a lis pendens.
  • Be prepared for costs: court fees, commissioner fees, sale costs, and attorneys’ fees (the court may award costs in limited situations).
  • Remember that a sale does not erase valid mortgages; confirm lien balances so you understand the likely net proceeds.
  • Explore alternatives: negotiated buyout, refinancing, or voluntary sale to a third party can be faster and less expensive than litigation.

Where to read the statute

Primary Michigan statutes governing partition actions are in MCL 600.2801 and the surrounding sections. You can read the statute online at the Michigan Legislature site: MCL 600.2801 and review related sections in the same chapter for sale and procedural rules.

Disclaimer: This article provides general information about Michigan law and does not constitute legal advice. It does not create an attorney-client relationship. For advice about your specific situation, contact a licensed attorney in Michigan.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.