South Carolina: Dividing or Forcing Sale of Co-Owned Farmland — FAQ | South Carolina Partition Actions | FastCounsel
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South Carolina: Dividing or Forcing Sale of Co-Owned Farmland — FAQ

FAQ: Dividing or Forcing the Sale of Co-Owned Farmland in South Carolina

Short answer: If co-owners cannot agree, a co-owner may file a court action to partition the land. South Carolina courts will first consider dividing the property physically (partition in kind). If a fair physical division is not feasible, the court may order a sale and divide the proceeds after paying liens, costs, and accounting for each owner’s interest.

Detailed answer — step-by-step under South Carolina law

1. Confirm legal ownership and type of co-ownership

Start by checking the deed and county land records. Co-owners are typically either:

  • Tenants in common — each owner holds an individual, divisible share that can be transferred or inherited.
  • Joint tenants with right of survivorship — ownership passes to surviving joint tenants on death.

The type of ownership affects who can force a sale and how shares are treated. For general property law and real-property rules in South Carolina, see the South Carolina Code, Title 27 (Property): https://www.scstatehouse.gov/code/t27.php.

2. Try a voluntary solution first

Court is not the only option. Co-owners often resolve disputes by:

  • Agreeing on a buyout (one owner buys another’s share).
  • Agreeing to divide parcels physically and transfer title accordingly.
  • Mediation or arbitration to set terms and valuation.

Voluntary resolution is usually faster, less expensive, and gives parties control over the outcome.

3. If negotiation fails: file a partition action

A partition action is a civil lawsuit asking the court to divide or sell the property. These actions are governed by South Carolina civil procedure and property law; for court procedure guidance see Title 15 (Courts and Civil Procedure): https://www.scstatehouse.gov/code/t15.php. Typical steps in a partition lawsuit are:

  1. File a complaint: The plaintiff (one co-owner) files in the county where the land lies and names all co-owners and any lienholders as defendants.
  2. Service and response: Co-owners and lienholders must be served and given a chance to respond.
  3. Discovery and valuation: Parties may exchange information, obtain appraisals, and inspect the property. The court often uses appraisals to determine fair allocation or sale price.
  4. Commissioners or referees: The court frequently appoints commissioners or referees to examine the property, recommend divisions, and report back to the court.
  5. Partition in kind vs. partition by sale: The court will prefer dividing the land physically (partition in kind) if it can be done fairly without materially reducing value. If physical division is impractical or would prejudice owners, the court can order a sale and split proceeds according to ownership shares.
  6. Sale and distribution: If the court orders sale, it will supervise or order a public sale. Sale proceeds pay mortgages, liens, costs, and then are divided among owners according to their legal shares and any court-ordered adjustments.

4. How courts handle special issues

  • Mortgages and liens: Liens generally attach to the property and must be paid from sale proceeds before distribution to owners.
  • Contributions and credits: A court can allocate credits for one owner’s payments for improvements, taxes, or mortgage payments, adjusting distributions accordingly.
  • Operating farmland and tenants: Active leases, farm operators, and crop seasons can affect timing. Courts may coordinate with existing tenant agreements and consider business disruption when choosing between division and sale.
  • Conservation easements and program contracts: Restrictions (e.g., conservation easements or USDA program contracts) can limit options; these must be disclosed and factored into valuation.
  • Timing: Partition litigation can take months to years depending on complexity, appraisal needs, disputes among owners, and court schedules.

5. Practical legal and financial consequences

Expect attorneys’ fees, court costs, appraisal fees, and commissions if the court orders a sale. There can also be tax consequences for the selling owners (capital gains, basis adjustments). If a co-owner buys out others, negotiate terms for financing, reimbursement for recent investments, and allocation of ongoing farm income before transfer.

6. What an attorney can do for you

  • Explain legal rights tied to the deed and state law.
  • Help negotiate buyouts, mediations, or settlement agreements.
  • Prepare and prosecute or defend a partition action, including discovery and advocacy before the court.
  • Coordinate valuations, handle liens, and advise on tax and title issues post-sale.

Helpful Hints

  • Do a title search early. Identify all owners and all liens or encumbrances recorded against the farm.
  • Get at least one agricultural appraisal focused on productive value, not just comparable residential sales.
  • Document contributions (repairs, taxes, loan payments, improvements). Courts may credit those expenses against an owner’s share.
  • Consider mediation before filing suit — it can preserve family relationships and save money.
  • Ask about conservation easements, agricultural programs, or tenant leases that limit division or sale.
  • Prepare financial records (tax returns, rent rolls, crop contracts) before consulting a lawyer.
  • Expect timeline variability—complex land, many co-owners, and disputed valuations lengthen cases.
  • When possible, negotiate a written buyout agreement with clear payment schedule, closing date, and title transfer procedures.

Where to read South Carolina law

Relevant statutory material and statutes governing property and court procedure can be found on the South Carolina Legislature’s website:

Next steps

  1. Collect deed, mortgage, tax, and lease documents.
  2. Order an appraisal and title search.
  3. Attempt negotiation or mediation with co-owners.
  4. If negotiations fail, consult a South Carolina attorney experienced in real property and partition actions to review options and file a partition suit if appropriate.

Disclaimer: This article provides general information about South Carolina law and is not legal advice. It does not create an attorney-client relationship. For advice specific to your situation, contact a licensed South Carolina attorney.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.