How a Rhode Island co-owner can get money instead of keeping physical property

Short answer: In Rhode Island a co-owner who wants money instead of a physical share can either negotiate a buyout with the other owners or, if negotiation fails, file a partition action in court asking for sale of the property and distribution of the sale proceeds. The court can order a sale when physical division is impracticable and then distribute net proceeds among co-owners according to their ownership shares after paying costs, liens, and any adjustments.

Detailed answer — How it works under Rhode Island law

Rhode Island allows any co-owner of real estate to seek partition. If co-owners cannot divide the land in kind, the court may order the property sold and the proceeds divided. This process gives a co-owner monetary compensation instead of a physical portion of the property.

Key legal framework: partition actions in Rhode Island are governed by the partition statutes (R.I. Gen. Laws Chapter 34-7). For the statutory text and procedure, see the Rhode Island General Assembly’s partition provisions: R.I. Gen. Laws Chapter 34-7 (Partition). The statutes permit a court to divide property in kind or order a sale when division is impracticable. (See the Chapter linked above for the full language and procedures.)

Two common paths to monetary compensation

Private buyout (voluntary agreement)
Most co-owners obtain money by agreement. One owner hires an appraiser to establish fair market value, offers to buy the other owner’s interest at an agreed price (often a pro rata share of market value), and completes a transfer by deed. This avoids court costs, delay, and the risk of an unfavorable court-ordered sale. Written agreement and clear title paperwork are essential.
Partition action (court-ordered sale)
If co-owners cannot agree, a co-owner can file a partition complaint in the appropriate Rhode Island court (typically Superior Court for real property matters). The plaintiff asks the court to either divide the land physically (partition in kind) or, if that’s impracticable, order a sale and divide the net proceeds among co-owners.

The court usually follows these steps:
- Service and pleadings: The complaining co-owner files a complaint naming all co-owners and interested parties.
- Appointment of commissioners or referees: The court may appoint commissioners to appraise, divide, or sell the property.
- Determination whether in-kind division is practical: If the land can be divided fairly without prejudicing the owners, the court may partition in kind.
- Order sale if division is impracticable: If the court finds division impracticable, it will order sale, normally at public auction or private sale under court supervision.
- Payment of liens and costs: Proceeds pay liens (mortgages, tax liens), costs of sale, and attorney fees if awarded.
- Distribution of net proceeds: The remaining funds are divided among co-owners according to ownership interests, subject to credits or adjustments (for unequal contributions, improvements, rents, or waste).

Practical examples (hypothetical)

Example 1 — Buyout by agreement: Two siblings each own 50% of a house. Sibling A wants cash. They hire an appraiser who values the house at $300,000. Sibling A offers $150,000 plus payment of closing costs to buy out Sibling B. They sign a purchase agreement and complete the deed transfer. Sibling B receives money and the parties avoid court.

Example 2 — Partition action: Three friends own a vacation lot as tenants in common (one owns 50%, two own 25% each). One owner wants cash but the others refuse to sell. The complaining owner files a partition action. The court finds the lot cannot be fairly divided and orders a sale. The lot sells for $120,000; after paying a $20,000 mortgage, $5,000 in sale costs, and $3,000 in legal fees, the net $92,000 is distributed 50% ($46,000) and two 25% shares ($23,000 each).

What the court will consider when deciding sale vs. division

Whether physical division is practical without materially impairing value.
Each co-owner’s interest and contribution (purchase price, improvements).
Existing liens and mortgages that must be satisfied from sale proceeds.
Costs of sale and any conduct by owners that affects distribution (waste, wrongful withholding of rents).

Steps to take if you want money instead of property

Start by trying to reach a written agreement with the other owners. A negotiated buyout is usually fastest and cheapest.
Get a qualified real estate appraisal so you have a market value baseline for offers or court proceedings.
Collect ownership documents: deeds, mortgage statements, tax bills, homeowner association rules, and any written co-ownership agreements.
Consider mediation or arbitration — courts often favor settlement and many judges will stay a partition action to allow mediation.
If you must litigate, prepare to file a partition complaint in the appropriate Rhode Island court and to follow the court’s procedures for appraisal, sale, and distribution.

Costs, timing, and tax considerations

Costs: Expect court filing fees, appraisal fees, commission and sale costs, and attorney fees. In some cases the court may order one party to pay the other’s fees if equitable.
Timing: A negotiated buyout can close in weeks; a partition action can take many months to over a year depending on complications.
Taxes: Sale proceeds may produce capital gains tax. The owner receiving cash may also face tax consequences depending on basis and how long they held the interest. Consult a tax professional for specifics.

When to talk to a Rhode Island attorney

Consult a Rhode Island real estate attorney if:

Co-owners cannot agree on buyout terms.
There are mortgages, multiple liens, or complex title issues.
You need help valuing credits for improvements, payments, or unequal contributions.
You want to file or defend a partition action.

Helpful hints

Obtain a professional appraisal early — it strengthens negotiation and provides evidence if you go to court.
Preserve financial records that show who paid what (mortgage payments, taxes, repairs) — courts use these to adjust distributions.
Check title for liens or judgments; lenders may have rights that affect distribution.
Explore mediation before filing suit; it often saves time and money.
Know your ownership form (tenancy in common vs. joint tenancy) — it affects rights and remedies.
Keep a clear paper trail of offers and communications with co-owners — courts look favorably on documented attempts to resolve disputes.
Consider escrow for security when completing a private buyout.

Disclaimer: This article explains general Rhode Island concepts about partition and buyouts and is for informational purposes only. It is not legal advice and does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Rhode Island attorney.