Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your case.
Detailed Answer
1. Partition Action Under South Carolina Law
When co-owners of real property in South Carolina cannot agree on sale timing, method or cost allocation, any co-tenant may file a partition action. South Carolina law grants each owner the right to force a division or sale of the property through the courts. See S.C. Code Ann. § 15-49-10 et seq..
Key points:
- Partition in Kind vs. Partition by Sale: The court prefers dividing land physically (“in kind”). If a fair division is impracticable, the court orders a public sale and splits proceeds among owners proportionally.
- Appointment of Commissioners: The court appoints neutral commissioners to manage the appraisal, advertising and sale of the property. They set sale terms and confirm bids under court supervision.
- Allocation of Costs: Costs of maintenance, taxes, insurance and sale expenses come out of sale proceeds before distribution. If one co-owner advanced more than their share, they can request credit at settlement.
2. Resolving Cost-Sharing Disputes
Co-tenants owe each other an equitable right to contribution for necessary expenses that preserve property value, such as property taxes and insurance. While there is no statutory formula for improvements, courts may grant reimbursement or a credit on sale if a co-owner invested in major repairs or enhancements.
To pursue cost recovery:
- Include a contribution claim in your partition complaint.
- Provide receipts, contractor invoices or proof of payments to the court.
- Ask the court to adjust each party’s share of proceeds to reflect contributions.
3. Voluntary Buyout and Alternative Dispute Resolution
Before or during litigation, co-owners may agree to:
- Buyout: One co-owner purchases the other’s interest at a negotiated price.
- Mediation or Arbitration: Neutral third parties help parties reach a settlement on sale terms and cost sharing without a full court proceeding.
These options can save time and legal fees compared to a contested partition sale.
Helpful Hints
- Attempt mediation early to avoid court costs and delays.
- Keep detailed records of all expenses you pay on behalf of the property.
- Obtain independent appraisals before proposing a buyout price.
- Consult a real estate attorney to draft a buyout or co-ownership agreement.
- Understand that partition sales often yield lower prices than private sales.