Detailed Answer — Getting Your Share of Net Proceeds After a Partition Sale in Oregon
This is an overview of how distribution of money from a court-ordered partition sale typically works in Oregon and practical steps you can take to get your share. This is educational information only and does not create an attorney-client relationship. It is not legal advice. For help specific to your situation, consult a licensed Oregon attorney.
How partition sales and distribution normally proceed under Oregon law
When co-owners cannot agree to keep or divide real property, one owner can ask the circuit court for a partition. Oregon law governing partition actions is in ORS Chapter 105. The court may order physical division or, if the property cannot be conveniently divided, sale and division of the proceeds. For the statutory framework see ORS Chapter 105: https://www.oregonlegislature.gov/bills_laws/ors/ors105.html.
Typical sequence that leads to distribution
- The court authorizes partition and usually appoints a referee or commissioner to sell the property.
- The commissioner conducts the sale and files a report of sale with the court describing the sale price, bidders, and any sale expenses.
- The court reviews the report, approves the sale (unless there are valid objections), and issues a decree confirming the sale and directing how the net proceeds are to be paid out.
- Before net proceeds are distributed, the commissioner or the court pays liens and valid claims against the property (mortgages, tax liens, recorded judgments), costs of the sale, and any court-ordered fees. Remaining money becomes the net proceeds to be divided among owners.
- The court orders distribution of net proceeds according to the owners’ legal interests, subject to any offsets or credits ordered by the court.
How to get your share — step by step
If you want to make sure you receive the correct amount, follow these practical steps:
- Confirm the court case number and docket entries. The clerk’s office can tell you whether the commissioner has filed a report of sale and whether the court has entered a decree of distribution.
- Obtain a copy of the commissioner’s report, the court’s order approving the sale, and the proposed decree of distribution. These documents show the gross sale price, liens paid, sale costs, and the proposed division.
- Check how ownership shares were determined. Distribution normally follows the parties’ legal interests (title, tenancy in common percentages, joint tenancy issues) unless the court has ruled differently.
- Review what was paid from proceeds first: recorded mortgages and liens, real estate taxes, sale costs, and court-ordered fees. These are typically paid before owners receive net proceeds.
- If you believe the distribution is incorrect (wrong ownership share; failure to credit amounts you paid such as mortgage payments, taxes, or improvements), file a written objection or motion with the court promptly. Provide documentation (recorded deeds, receipts, bank records, cancelled checks) supporting your claim.
- If the court has already approved distribution but funds are being held by the commissioner or the sheriff, ask the clerk how to request disbursement. The court’s decree will usually direct the officer handling funds to pay owners according to the decree.
- If another co-owner refuses to convey or accept the court-ordered distribution, the court’s decree is enforceable as a judgment. Options include filing a motion for enforcement, a writ of execution, or other post-judgment remedies available under Oregon law.
Common issues that affect how much you get
- Priority liens: Mortgage lenders and tax authorities are paid from proceeds before owner distributions. Check the chain of title for recorded liens and their priority.
- Reimbursements and credits: The court can allow reimbursement to an owner who paid mortgage installments, taxes, insurance, or made necessary repairs; you must prove payments and reasonableness.
- Setoffs for waste or rents: If an owner caused damage (waste) or collected rents, the court may adjust distribution to reflect those facts.
- Costs and commissions: Broker fees, advertising, referee or commissioner fees, and court costs are deducted from gross sale proceeds.
- Timing and objections: If you fail to raise timely objections in the partition case, you may lose the chance to contest distribution. Check the court docket and local rules for deadlines and motion practice.
If you did not receive your share or funds are missing
Take these steps:
- Request an accounting. Ask the court or the commissioner/referee for a written accounting showing gross sale price, liens paid, sale expenses, and the calculation of net proceeds.
- File a motion to compel distribution or enforce the court’s decree. If the court ordered distribution and someone is not following that order, you can ask the court to enforce the decree.
- Consider a turnover or garnishment. If a co-owner improperly retains money that the court ordered paid to you, post-judgment remedies like garnishment or writs of execution may apply.
- Preserve evidence. Keep copies of all filings, receipts, communications, and title documents; these help on a motion or in a follow-up lawsuit to recover funds.
Where to find forms and local procedures
Check the local county circuit court’s website or the Oregon Judicial Department for local rules and possible forms. The Oregon statutes governing partition are in ORS Chapter 105: https://www.oregonlegislature.gov/bills_laws/ors/ors105.html. For help with post-judgment enforcement, the court clerk can point you to forms and local procedures.
When to get legal help
Consider hiring an attorney if:
- The distribution calc is complex (multiple liens, disputed reimbursements, or offsets).
- A co-owner refuses to follow a court order or you need to enforce a judgment.
- Large sums are at stake or title and ownership interests are contested.
An Oregon-licensed attorney can help you prepare and file objections, obtain an accounting, and pursue enforcement remedies.
Helpful Hints
- Start by getting copies of the commissioner’s report, the court’s decree, and the recorded deed(s). These show the court’s findings and the legal interests.
- Gather proof of any payments you made for mortgages, taxes, insurance, or repairs before asking for reimbursement from proceeds.
- Act quickly to object. Courts and local rules may set tight deadlines to contest sale reports or distribution orders.
- Expect liens and sale costs to reduce the amount available to owners. Ask the clerk for an accounting of how liens and costs were paid.
- Keep your contact information current with the court so you receive notices and the distribution check or order promptly.
- Watch tax consequences: a sale can produce taxable gain. Keep records and consult a tax professional about reporting and potential 1099-S requirements.
- If you cannot afford an attorney, ask the court clerk about local legal aid programs or lawyer referral services through the Oregon State Bar.
Disclaimer: This is general information about Oregon law intended to help you understand common procedures after a partition sale. It is not legal advice. For advice about your specific situation, consult a licensed Oregon attorney.