How can I get my share of the net proceeds after the partition sale of a co-owned house? (NH) | New Hampshire Partition Actions | FastCounsel
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How can I get my share of the net proceeds after the partition sale of a co-owned house? (NH)

Detailed Answer

Short answer: After a court-ordered partition sale of a co-owned house in New Hampshire, you get your share of the net proceeds by making sure you are recognized as a party to the partition action, confirming the court’s distribution order or closing statement, and then asking the court or closing agent to disburse the funds. If the proceeds are being held by the registry of the court, you will receive your portion pursuant to the court’s distribution order after liens, costs, and any adjustments for contributions are paid.

How partition sales work in New Hampshire (basic framework)

Partition is the legal process that lets co-owners divide or sell real property when they cannot agree. When physical division isn’t feasible or fair, the court orders a sale and then distributes the net proceeds among the co-owners according to their ownership interests. New Hampshire’s laws on partition are found in the state statutes; see the Revised Statutes Annotated (RSA) and related court rules for details. For statute access and text, see the New Hampshire RSA site: https://www.gencourt.state.nh.us/rsa/html/ and look up “RSA 547” (Partition).

Step-by-step: Getting your share of net proceeds

  1. Confirm your legal interest in the property. Your share is generally based on the ownership interest recorded in the deed (tenants in common, joint tenancy, etc.). If you believe your share differs from the deeded interest because of contributions, improvements, or payments, raise that in the partition case.
  2. Make sure you are a party to the partition action or file a claim. If a partition lawsuit has been filed, you must be named as a party or file an appearance/answer to preserve your right to proceeds. If you were not notified, you may need to ask the court to allow you to intervene.
  3. Obtain the court’s order or the closing statement showing distribution. After sale, the court (or the appointed commissioner/sheriff/agent) will prepare a statement showing gross sale price, deductions (mortgage payoffs, tax liens, other judgments, commission, closing costs, property taxes, appraisal and legal fees, sale expenses), and the net proceeds. The court then issues an order approving the sale and directing distribution of the net proceeds.
  4. Check for liens and prior claims. Mortgage lenders, tax authorities, and judgment creditors may have priority and will often be paid from sale proceeds before co-owners receive any funds. The net amount available to owners is sale price minus those priority payments and sale costs.
  5. Request distribution or collect from closing agent or court registry. If the closing agent (title company or escrow) handled the sale, they normally pay the parties according to the court order or closing statement. If the court received the funds or the funds were deposited with the court’s registry, the clerk will distribute funds only after entry of a distribution order. If distribution is delayed, file a motion for distribution or for disbursement under the court’s order.
  6. Ask for an accounting and adjustments if appropriate. You can request an accounting of receipts and expenditures related to the property (mortgage payments, taxes, insurance, repairs). New Hampshire courts allow equitable adjustments—e.g., a co-owner who paid the mortgage or paid for major improvements may seek credit before distribution. Such claims are typically resolved in the partition action.
  7. Enforce the order if distribution does not occur. If the court ordered distribution but a party or agent refuses to turn over your share, you can ask the court to enforce its order, issue contempt sanctions, or order turnover.

Common reasons you might not receive money immediately

  • Outstanding mortgages, tax liens, or judgment liens paid first.
  • Costs of sale (real estate commission, closing fees, advertising, appraisal) deducted prior to distribution.
  • Pending disputes about who paid what (contribution claims) that require additional court rulings.
  • Administrative delays while the court processes the distribution order or while the closing agent waits for clear title or payoff confirmations.

Practical documents and information to gather

  • Recorded deed showing your interest.
  • Court docket number and copies of filing(s) in the partition case.
  • Settlement/closing statement or court-approved distribution statement.
  • Mortgage payoff statements, tax bills, judgment liens, and proof of payments you have made toward the property (mortgage, taxes, repairs).
  • Any written agreement among co-owners about distribution or contributions.

When to hire an attorney

Consider getting a New Hampshire real estate or civil litigation attorney if:

  • There are disputed claims about ownership percentage or contribution credits.
  • Significant liens or creditor claims exist against the property.
  • The sale proceeds are improperly withheld or distributions are contested.
  • You need help filing motions, claims for an accounting, or enforcing a court order.

An attorney can help prepare a motion for distribution, request an accounting, negotiate credits for mortgage or improvement payments, and pursue relief if the court order is not followed.

Relevant New Hampshire resources and statutes

Disclaimer: This information is for general educational purposes only and is not legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed New Hampshire attorney who handles partition and real property matters.

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.