Disclaimer: This article provides general legal information and does not constitute legal advice. For advice tailored to your situation, consult a licensed attorney in Rhode Island.
Detailed Answer
When two or more people co-own real estate in Rhode Island—typically as tenants in common or joint tenants—they share ownership but may disagree over sale timing, the marketing process, or who pays for taxes, insurance, and maintenance. Rhode Island law offers several pathways to resolve these disputes:
1. File a Partition Action
Under R.I. Gen. Laws § 34-7-1 et seq., any co-owner may petition the Superior Court to divide (partition) or sell the property:
- Partition in Kind: The court divides the land into separate parcels, awarding each owner a portion proportional to their interest. See R.I. Gen. Laws § 34-7-1.
- Partition by Sale: When physical division is impractical, the court orders a public sale. Net proceeds go to owners based on their ownership percentage. See R.I. Gen. Laws § 34-7-3.
The court may appoint a commissioner or referee to oversee the sale, set terms, and ensure fair bidding.
2. Seek Reimbursement or Contribution for Expenses
If co-owners clash over who footing bills for taxes, insurance, or repairs, one owner can ask the court for an accounting and contribution. The court allocates expenses equitably among owners based on use and benefit. For guidance on apportioning costs, see R.I. Gen. Laws § 34-7-5.
3. Use Alternative Dispute Resolution (ADR)
Before or during litigation, co-owners can mediate or arbitrate disputes. ADR often resolves issues faster and at lower cost than court. Parties can agree on a neutral mediator to craft a buy-out agreement or establish expense-sharing protocols.
4. Negotiate a Buy-Out Agreement
One co-owner may offer to purchase the other’s interest at a fair market value. Documenting this agreement in writing avoids litigation. An appraisal can set a credible price.
Helpful Hints
- Review your deed and any co-ownership agreement for built-in dispute-resolution clauses.
- Document all property expenses and contributions in a shared ledger or spreadsheet.
- Obtain a professional appraisal before pursuing a buy-out or partition sale.
- Consider mediation early to preserve relationships and reduce cost.
- Consult counsel experienced in Rhode Island partition actions to understand court fees, timelines, and potential outcomes.