Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
1. Negotiation and Alternative Dispute Resolution
Co-owners typically start by negotiating a buyout price. You can:
- Obtain a neutral appraisal from a licensed appraiser.
- Engage a mediator to bridge valuation gaps.
- Use arbitration to set a binding price.
If both sides agree, document the terms in a buy-sell agreement or deed transfer.
2. Partition Action Under South Carolina Law
If negotiation fails, any co-owner may file a partition action in the courts under S.C. Code Ann. § 15-39-10 et seq.. The court follows these steps:
- Determine whether the property can be physically divided (partition in kind).
- If division is impractical, order a partition by sale.
- Appoint a commissioner or referee to conduct the sale (§ 15-39-40).
- Deduct liens, costs, and fees; distribute net proceeds among co-owners by ownership share.
3. Partition in Kind vs. Partition by Sale
Partition in kind splits the property according to ownership interests. Courts favor this when physical division is feasible without reducing value. If not feasible, partition by sale places the property on the open market.
4. Court-Ordered Sale and Forced Buyout
During a partition by sale, the court may:
- Set bidding procedures.
- Authorize a private or public sale.
- Allow co-owners the first right to purchase at sale price.
This process ensures fair market value and impartial distribution.
Helpful Hints
- Start with an independent appraisal to set realistic expectations.
- Consider mediation before pursuing court action to save time and money.
- Review any existing co-ownership or trust agreements for buyout clauses.
- Account for costs: appraisal fees, legal fees, sale commissions.
- Keep clear records of all offers, valuations, and communications.
- Consult a real estate attorney early if you anticipate a dispute.