Ohio: How to Offer to Buy Out Co-Owners in a Partition Case Before Court Orders a Sale

Detailed answer

When co-owners of real property in Ohio face a partition action, they do not have to wait for a court-ordered sale. Ohio law allows co-owners to reach a voluntary buyout or settlement any time before the court finally disposes of the property. The partition statutes (Ohio Rev. Code Chapter 5307) govern how a court may divide or sell property, but they do not prevent the parties from agreeing to a buyout instead of a judicial sale. See Ohio Rev. Code Chapter 5307: https://codes.ohio.gov/ohio-revised-code/chapter-5307.

How a buyout typically works (practical steps)

1. Confirm the current case status. Check the court docket to see whether the judge has already issued an order to sell or appointed a commissioner. If a sale has not been completed, you can still negotiate a buyout.
2. Get a reliable valuation. Obtain a recent market appraisal from a licensed Ohio appraiser or use a broker opinion plus a written appraisal to set a fair buyout price. Valuation should reflect market value and then allocate value according to ownership shares and adjustments for mortgages, liens, unpaid expenses, improvements, or rents due the co-owners.
3. Calculate each owner’s share. Start from the agreed market value (or appraised value) and subtract encumbrances and agreed credits (mortgage payoffs, unpaid property taxes, necessary repairs). Multiply the resulting equity by each owner’s ownership percentage to calculate buyout amounts.
4. Prepare a clear written offer. Put your buyout proposal in writing. Include the proposed purchase price for the co-owners’ interests, payment terms (cash at closing, escrow, or financing contingency), a proposed closing date, and any contingencies (title clearance, satisfactory inspection, proof of funds). Send the offer by certified mail or email with read receipts so you have proof of delivery.
5. Show proof of funds or financing. Co-owners and courts take offers more seriously when accompanied by a lender preapproval, mortgage commitment, or verified funds placed in escrow. That reduces the risk the buyer cannot close and helps convince other owners to accept the offer.
6. Use a settlement agreement and deed. If the co-owners accept, document the transaction with a written settlement agreement (sometimes called a buyout agreement or stipulation) and the deed to transfer the departing owners’ interests (usually a quitclaim or warranty deed). The agreement should address allocation of closing costs, payment for liens, and who pays attorney fees or court costs.
7. File a stipulation or motion with the court. If there is an active partition case, file a joint stipulation or motion asking the court to approve the parties’ settlement and to enter an order dismissing the partition claim (or dismissing it as to the settling parties) and directing the clerk to record the conveyance. Courts generally accept voluntary settlements; filing the stipulation prevents a later dispute about whether the partition should proceed. See Ohio Rev. Code § 5307 generally: https://codes.ohio.gov/ohio-revised-code/section-5307.02 (action for partition).
8. Close through title/escrow. Use a title company or an attorney-handled closing to pay off liens, record the deed, and issue title insurance if desired. Make sure title clearance, payoff amounts, and prorations are settled before funds change hands.
9. If co-owners refuse, consider procedural options. If other owners decline a reasonable offer, you can: (a) make a stronger offer; (b) seek mediation; (c) offer installment payments or other creative terms; or (d) proceed with the partition and ask the court for a sale. You may also ask the court for a brief continuance of any scheduled sale to pursue settlement talks.

Key legal points under Ohio law

• Ohio’s partition statutes provide the court tools to divide or sell property, but they permit parties to resolve matters by settlement at any time before the court’s final disposition. See Ohio Rev. Code Chapter 5307: https://codes.ohio.gov/ohio-revised-code/chapter-5307.
• If you reach settlement while a partition case is pending, file a joint stipulation or motion to have the court enter an order consistent with your agreement and to remove the case from the active docket or dismiss the action as to the settling parties. The court will typically honor a voluntary agreement that resolves the dispute.
• If the court has already appointed a commissioner or set a sale date, you can still present a settlement to the court and ask for a stay or dismissal; courts often grant short continuances to permit settlements if the parties act promptly.

Common valuation and negotiation issues

Disputes commonly arise over how to value the property and what credits to include (mortgages, repairs, unpaid bills, past contributions). Be transparent: provide supporting documents (appraisal, title report, mortgage statements, repair estimates). Consider neutral mediation or a joint appraiser if co-owners cannot agree on value. If you cannot get a market mortgage for the full buyout price, offer a larger down payment, seller financing, or structured payments that protect the selling owners.

When a court order already contemplates sale

If the court has ordered a sale, contact the court clerk and opposing counsel promptly. You can file a joint motion to vacate or modify the sale order based on your settlement and attach the proposed settlement agreement. Courts prefer to avoid unnecessary sales when parties have reached a voluntary resolution.

Important: This summary explains common practices and how settlements generally fit into Ohio partition cases. It does not create attorney-client privilege or form legal advice.

Helpful Hints

• Obtain an independent appraisal to anchor negotiations and avoid later disputes.
• Provide proof of funds or a lender preapproval with your offer to show seriousness.
• Use a written offer with clear deadlines—oral offers create uncertainty and delay.
• Include a short contingency period (e.g., title review, inspection) to protect both sides.
• Offer options: cash buyout, seller financing, or installment payments to increase chances of acceptance.
• Keep records of all communications and deliver offers by tracked methods (certified mail or email receipts).
• If negotiations stall, propose mediation; courts often prefer parties try mediation before a sale.
• Ask the court for a brief continuance of any sale date if you are actively negotiating a settlement.
• Work with a title company or closing attorney to ensure liens are paid and the deed records properly.
• Consult a licensed Ohio attorney before signing settlement documents to protect your rights and confirm the court filing strategy.

Disclaimer: This article is for general informational purposes only and is not legal advice. Laws change and facts matter. Consult a licensed Ohio attorney to get advice about your specific situation.