Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
When two or more individuals co-own real property in Nevada and cannot agree on sale logistics or cost sharing, state law provides several remedies. Co-owners may pursue informal resolution or formal court action. Below are the primary legal options under Nevada Revised Statutes (NRS) Chapter 40:
1. Partition Action
A partition action lets one co-owner ask the district court to physically divide the property or order its sale and split the proceeds.
- Partition in Kind: If the property can be divided fairly among owners, the court orders a physical split. (See NRS 40.330: leg.state.nv.us/NRS/NRS-040.html#NRS040Sec330.)
- Partition by Sale: If division is impracticable or inequitable, the court directs a public sale and divides net proceeds. (See NRS 40.010: leg.state.nv.us/NRS/NRS-040.html#NRS040Sec010.)
2. Contribution and Cost Sharing
Under NRS 40.050, each co-owner must advance their share of necessary expenses (e.g., taxes, mortgage payments). A co-owner who pays more than their share can seek reimbursement:
- NRS 40.050 – Liability for advances and right to reimbursement (leg.state.nv.us/NRS/NRS-040.html#NRS040Sec050).
- Court can order accounting and repayment of any excess contributions.
3. Buy-Out Agreement
Co-owners may negotiate a private buy-out. One party purchases the other’s interest at fair market value. You can use a professional appraisal to set the price and draft a transfer agreement.
4. Mediation or Alternative Dispute Resolution (ADR)
Mediation helps the parties reach a mutually acceptable plan without court intervention. Many district courts in Nevada offer court-referred mediation for property disputes.
5. Injunctive Relief
If a co-owner refuses to pay necessary expenses (e.g., HOA fees, insurance), the other may seek an injunction to compel payment and prevent liens or penalties.
Helpful Hints
- Document all communications and expense receipts.
- Obtain a licensed real estate appraisal for buy-out valuations.
- Consider a written co-ownership agreement at acquisition to address future disputes.
- Explore county or court-sponsored mediation programs for faster resolution.
- Consult an attorney before filing a partition action to understand timelines and costs.