Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney in your jurisdiction before taking legal action.
Detailed Answer
When two or more individuals co-own real property in
1. Partition Action
A partition action is a lawsuit one co-owner can file to force division or sale of the property. Under Neb. Rev. Stat. §25-21,187 to §25-21,210, the court may:
- Order a physical division of the land (“partition in kind”) if it won’t impair its value.
- Order a sale and divide proceeds among co-owners by their ownership interests (“partition by sale”).
To learn more about filing procedures and requirements, see Neb. Rev. Stat. §25-21,187 et seq.: nebraskalegislature.gov/laws/statutes.php?statute=25-21,187.
2. Mediation or Alternative Dispute Resolution
Before or during litigation, co-owners can agree to mediation. A neutral mediator helps the parties negotiate sale logistics, cost allocation and timing. Mediation can be quicker and less expensive than court.
3. Buyout Agreement
One co-owner may offer to buy the other’s interest at fair market value. An appraisal by a licensed appraiser can establish a valuation. This avoids litigation and preserves ownership for the buying party.
4. Contractual Buy-Sell Provisions
If the co-ownership agreement or deed includes a buy-sell clause or right of first refusal, follow that procedure. These clauses often set notice requirements, valuation methods and timelines for sale.
5. Agreed Sale with Third-Party Structuring
Co-owners can jointly retain a real estate agent or broker to market the property, split listing costs, and agree in writing on commission and closing fees. A clear written agreement on costs prevents later disputes.
Helpful Hints
- Review any existing co-ownership or partnership agreements for built-in dispute resolution clauses.
- Obtain an independent appraisal to set a transparent market value.
- Document all proposals and communications in writing.
- Consider informal negotiation before filing court papers to save time and money.
- Consult a Nebraska real estate or civil litigation attorney early for strategy and compliance with filings.