Detailed Answer: How distribution of partition-sale proceeds works under Ohio law
This answer explains, in plain language, what typically happens after a court orders a partition sale of a co-owned house in Ohio and how you can get your share of the net proceeds. This is educational only and not legal advice. Consult a licensed Ohio attorney to protect your rights.
1. Basic legal framework (what Ohio law says)
Partition actions in Ohio are governed by the Ohio Revised Code chapter on partition. The court can divide property “in kind” or order a sale and distribution of the proceeds if division is impracticable. See Ohio Rev. Code, Chapter 5307: https://codes.ohio.gov/ohio-revised-code/chapter/5307.
2. What happens at a partition sale
- The court supervises the case and usually appoints a commissioner or referee to sell the property (often at public auction) unless the parties agree to a private sale approved by the court.
- From the gross sale price the court (or commissioner) subtracts sale costs, broker or auction fees, court costs, taxes, and the amount required to pay any prior liens and mortgages.
- Remaining funds are the “net proceeds.” The court orders distribution of the net proceeds to the co-owners according to their legal interests after any credits or reimbursements allowed by the court.
3. How your share is calculated
Your share normally equals your ownership percentage (for example, a one-third owner would get one-third of the net proceeds). If the deed or title shows unequal shares, distribution follows those percentages.
The court may adjust distributions to account for:
- Outstanding mortgages and recorded liens (these are typically paid first from sale proceeds).
- Paid or unpaid property taxes or assessments.
- Costs of sale and court costs.
- Equitable credits: the court can award an owner reimbursement or credit for contributions such as mortgage payments, taxes, necessary repairs, or improvements if the court finds it fair. You must ask the court and prove these payments.
4. Practical steps to get your share after the sale
- Obtain a copy of the court’s final order approving the sale and directing distribution. This is usually filed with the county clerk where the case is pending.
- Confirm the clerk of courts or the commissioner has the net proceeds available. Often the clerk will hold funds until all liens and appeals are resolved.
- Provide documentation the clerk requires: photo ID, a copy of the court order, and your contact and banking information (some clerks will issue a check; others require a request form or direct deposit instruction).
- If the proceeds are subject to unresolved liens or claims, the clerk will not distribute until those matters resolve. If you believe a lien was overlooked, notify the court in writing and request an accounting.
- If someone objects to the distribution or the court withheld or reduced your share, you can file a motion asking the court to enforce the distribution order or to hear your claim for reimbursement/credit.
5. Common problems and how to address them
- If a mortgage lender or lienholder claims payment from the proceeds: ask the clerk for the payoff statements and copies of lien releases; the clerk should pay secured creditors before distributing surplus to owners.
- If a co-owner says you owe money or has a counterclaim: the court may retain part of the proceeds pending resolution.
- If the court ordered distribution but the clerk delays: file a short written motion for disbursement with the court and ask for a hearing or an order directing the clerk to pay you.
- If someone refuses to follow the court order: you may seek enforcement remedies from the court, including contempt or turnover relief. A lawyer can help prepare those filings.
6. Short hypothetical example
Three co-owners each hold one-third. The house sells for $180,000. Sales costs and court costs equal $10,000. A mortgage payoff and recorded liens total $70,000. Net proceeds equal $100,000 ($180,000 – $80,000). Each owner’s share before any credits is about $33,333. If one owner paid $6,000 in necessary repairs before sale and the court grants reimbursement, that owner would receive $39,333 while the other two split the remaining $60,667 equally (each getting $30,333).
7. When to hire an attorney
Consider hiring an Ohio attorney if:
- Liens, mortgages, tax claims, or third-party claims complicate distribution.
- Co-owners dispute ownership percentages or claims for reimbursement.
- The clerk or a co-owner refuses to distribute funds after a final court order.
- You need help filing motions to enforce distribution or to protect your monetary interests.
Helpful Hints
- Get a certified copy of the final distribution order from the county clerk.
- Keep proof of any payments you made (mortgage, taxes, repairs). Ask the court for credit if you paid more than your fair share.
- Request a title and lien search early so you know what will be paid from proceeds.
- Communicate in writing with the clerk and co-owners; save copies of all filings and receipts.
- Consider mediation or a buyout agreement before a court sale to avoid costs and delays.
- If funds are delayed, ask the court for a prompt accounting and an order directing distribution.
- Understand that secured creditors (mortgages, tax liens) get priority—your share comes only after they are paid.
Disclaimer: This article explains general Ohio law and typical procedures. It is not legal advice. For advice about your specific situation, consult a licensed Ohio attorney.