Detailed Answer
When co-owners cannot agree on a buyout price for jointly held property in Oregon, they can explore several options:
1. Private Negotiation and Appraisal
Co-owners can negotiate directly or hire an independent appraiser to set a fair market value. You can split the difference or adjust for each owner’s percentage of interest.
2. Mediation
Parties may work with a neutral mediator. Mediation can reduce conflict, preserve relationships and avoid court costs.
3. Judicial Partition Action
If negotiation fails, any co-owner can file a partition action under ORS 105.610 et seq. The court may:
- Order partition in kind. It divides real property physically among owners when practicable.
- Order sale and division of proceeds. If physical division isn’t practical or fair, the court orders a public sale and divides net proceeds among owners.
Under ORS 105.635, the court appoints commissioners or referees to value and, if possible, divide the property.
Helpful Hints
- Document all offers, counteroffers and communications in writing.
- Obtain an independent appraisal early to frame realistic discussions.
- Consider mediation or arbitration clauses in operating agreements.
- Understand that a partition action triggers court filing fees and possible attorney fees.
- Review ORS 105.705 for potential cost awards to the prevailing party.
Disclaimer
This article provides general information on Oregon real property law. It is not legal advice. Consult a qualified attorney to address your specific situation.