Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When co-owners of real property in Ohio cannot agree on a buyout price, they have several paths to resolve the dispute. These include negotiation, mediation, appraisal and, if necessary, a court-ordered partition action.
1. Negotiation and Mediation
Begin by discussing terms directly. If talks stall, hire a neutral mediator. Mediation lets you control outcomes and costs far less than litigation.
2. Independent Appraisal
Hire a licensed real estate appraiser to establish fair market value. Use the report as a baseline for buyout offers.
3. Buy-Sell Agreement
If co-owners included a buy-sell clause in their ownership agreement, they can invoke its pricing formula or appraisal mechanism to close the deal.
4. Court-Ordered Partition
When informal efforts fail, any co-owner may file a partition action under Ohio Revised Code § 5307.01. The court can order:
- Partition in kind. Physical division of the land if practical.
- Partition by sale. Public sale of the entire property. Proceeds divide according to ownership interests under Ohio Revised Code § 5307.06.
After sale, the court oversees distribution of funds. Note that auction prices often run below private sale values.
Helpful Hints
- Document all offers and communications in writing.
- Obtain a neutral, licensed appraisal to set realistic expectations.
- Include mediation or appraisal clauses in any buy-sell agreement.
- Understand partition actions can be time-consuming and public.
- Consult a real estate attorney early to tailor solutions to your facts.