Oregon: Forcing a Sale of Inherited Co-Owned Land — Your Legal Options

Detailed Answer — How the law works and the practical path to a sale

When someone dies and their real property passes to multiple heirs, those heirs usually own the property together as tenants in common (each heir holds a separate share). Oregon law gives any co-owner the right to ask a court to divide or sell the property through a partition action. The basic pathway is:

1. Confirm ownership and how title passed. Start by getting a certified copy of the decedent’s death certificate and any probate orders or the recorded deed. Confirm whether the property passed by will or intestacy and whether each heir has recorded title or a probate court order showing their share.
2. Try to reach an agreement first. Courts prefer that co-owners reach voluntary solutions because litigation is slow and expensive. Options include:
   • One or more heirs buy out the others using an independent appraisal to set a fair price.
   • All heirs agree to list the property with a real estate agent and split net proceeds.
   • Use mediation or a neutral facilitator to negotiate terms (price, timing, division of costs).
3. If negotiation fails, file a partition action in Oregon circuit court. Under Oregon’s partition statutes, a co-owner can petition the circuit court for partition (division of the property). See the statutes governing partition in ORS chapter 105: https://www.oregonlegislature.gov/bills_laws/ors/ors105.html

   Key points about partition actions in Oregon:

   • The court will examine title and ownership shares.
   • If the court finds the property can be physically divided fairly (partition in kind), it may divide the land and award specific parcels to different owners.
   • If a fair physical division is impractical or would be greatly prejudicial, the court can order a sale and divide the proceeds among owners.
   • The court has discretion to authorize a private sale under supervision or a public sale; a private sale is often permitted if it produces a better result for the co-owners and the court approves the sale terms.
4. How a court-ordered sale typically works.
   • After a partition judgment that orders sale, the court may appoint a commissioner, referee, or trustee to handle sale logistics (appraisal, marketing, contract review, closing).
   • The appointed person will obtain a market appraisal, arrange marketing, and present sale offers to the court or the parties for approval.
   • The sale proceeds are deposited with the court and distributed after paying liens, mortgages, taxes, sale costs, and the court’s approved expenses and attorney fees.
   • Oregon courts frequently allow private sales when the sale price is fair and the court is satisfied with the sale process, but the court must protect the co-owners’ shares and interests.
5. Practical steps and documents to gather now.
   • Death certificate, will or probate documents, and the court’s letters (if property passed through probate).
   • Recorded deed(s) showing the chain of title.
   • Mortgage statements, tax records, insurance, and any leases or occupancy agreements.
   • Recent property tax assessment and any recent appraisals or surveys.
   • Copies of any communications among heirs about selling or dividing the property.
6. Costs, timing, and outcomes to expect.
   • Partition litigation can take several months to more than a year, depending on complexity and court backlog.
   • Expect court costs, filing fees, appraisal fees, potential advertising, and attorneys’ fees. The court may allocate some costs to the sale proceeds before distribution.
   • If you want a private sale specifically, be prepared to show the court why a private sale is in the owners’ best interests (better price, lower cost than auction, ready buyer, credible marketing plan).
7. Alternatives to a court-ordered sale.
   • Buyout: One heir takes a loan or otherwise pays others for their shares.
   • Sell your share to a third party: This gives you cash but leaves the buyer as a new co-owner (often a less attractive result).
   • Short-term lease or management agreement: Use the property to produce income while you continue negotiations.
8. Get legal help when needed. Partition and probate overlap. A lawyer can evaluate title issues, recommend whether to push for partition, prepare and file the necessary complaint, represent you at hearings, and help obtain court approval for a private sale. If you cannot afford a lawyer, the court clerk or legal aid resources in your county can point you to self-help resources — but complex title or contested matters usually benefit from counsel.

Relevant Oregon law (partition statutes) is in ORS chapter 105. Read the chapter here: ORS Chapter 105 — Partition. That chapter explains who may bring a partition action and the court’s powers to divide or order sale.

Remember: the court’s primary goal in a partition action is to reach a fair distribution of the property’s value among co-owners. Courts generally prefer settlement, and they supervise any sale to ensure fairness to co-owners.

Helpful Hints

• Gather clear title documents early — disputes often hinge on recorded deeds and probate orders.
• Order a professional appraisal before negotiations to set realistic buyout or listing prices.
• Use mediation: neutral mediators can resolve disputes faster and cheaper than court.
• If you want a private sale, prepare a written marketing plan and evidence of a qualified buyer to present to the court.
• Account for liens, mortgages, property taxes, and costs — these reduce net proceeds and affect buyout offers.
• Keep written records of all communications with co-heirs about the property — courts consider demonstrated attempts to settle.
• Consider the tax and capital gains consequences of selling inherited property; consult a tax professional if needed.
• Contact the local county assessor and recorder to check for unrecorded encumbrances or assessments that affect saleability.