What to do when a co-owner refuses further mediation and you need the property sold

Disclaimer: This article is educational and is not legal advice. For guidance specific to your situation, consult a licensed Tennessee attorney.

Detailed Answer

If you co-own real property in Tennessee and the other owner refuses to continue mediation or negotiate a sale, your primary legal remedy is a court action for partition. Tennessee law allows a co-owner to ask a court to divide the property or to order a sale and divide the proceeds when division is impractical.

Key points about partition under Tennessee law:

Who may file: Any co-owner of real property may file a partition action. The court will determine the rights and interests of all named parties and carry out the appropriate remedy. See Tennessee Code Annotated, Title 29, Chapter 27 (Partition). For the statute text, see: Tenn. Code Ann. § 29-27-101 and the chapter overview at TCA Title 29, Ch. 27.
Partition in kind vs. sale: The court prefers a partition in kind (physically dividing the land) when it can be done without prejudicing the owners. If a fair physical division is impossible or would cause great harm to one or more owners, the court may order a sale and divide the sale proceeds according to each person’s ownership share.
Procedure: To start, you (or your attorney) file a complaint for partition in the appropriate Tennessee court (often chancery court; some counties allow filing in circuit court—local rules vary). The complaint names all owners and related parties (lienholders, tenants, mortgagees). The court will serve those parties and may appoint commissioners or referees to attempt division or to supervise a sale.
Appraisal and commissioners: The court commonly orders appraisals and appoints neutral commissioners or a master to determine whether division in kind is feasible and to set the terms of a sale if needed.
Buyout option: In many cases, the court allows a co-owner to purchase the other owner’s interest instead of a public sale. The buyout amount typically depends on an appraisal or valuation set by the court or commissioners.
Sale method and distribution: If the court orders a sale, it may be a public auction or a court-directed private sale. After sale, the court pays valid liens, taxes, expenses of sale (including court costs and commissions), and then divides the net proceeds among owners according to their legal interests.
How mortgages and liens affect partition: Mortgages and liens remain attached to the property until paid from sale proceeds. The court usually satisfies these obligations first from sale proceeds. If mortgage holders are not named, a purchaser’s rights and the order of payment can be more complex—name all lienholders in the complaint.
Costs and attorney fees: You are responsible for your own attorney fees unless the court orders otherwise. In rare circumstances (for example, where one co-owner acted fraudulently or in bad faith), the court can shift costs, but Tennessee statutes and case law govern when fees are awarded.
Timeline: Timing varies by county and case complexity. Expect several months in straightforward matters; contested cases with multiple parties, title problems, or appeals can take much longer.

Practical steps to force a sale

Collect documentation: deed(s), title report (if you have one), mortgage statements, tax bills, leases, income/expense records for the property, and any written co-ownership agreements.
Send a clear written demand: Although not legally required, a last written demand asking for sale, buyout, or continued mediation establishes your effort to resolve the dispute without court.
Hire a Tennessee real estate attorney: An attorney files the partition complaint, identifies all required parties, and helps with valuation and court strategy.
File a partition complaint in the correct court: Your attorney will determine whether to file in chancery or circuit court based on local practice and the nature of the relief sought.
Prepare for appraisal and possible auction: Expect the court to order valuation and to select commissioners. Be ready to make offers or bid at sale if you want to acquire the entire property.

Common complications and how courts handle them

These issues often arise in partition cases:

Disagreements over ownership shares: The court examines deeds, conveyances, and evidence to determine each party’s legal interest.
Title clouds: Unresolved liens or competing claims require resolution before clear distribution of sale proceeds.
Occupant resistance: If a co-owner lives on the property and resists access or sale, the court can issue orders that permit the sale and remove occupants when necessary.
Valuation disputes: Courts rely on independent appraisers, expert testimony, and commissioners’ reports to set value.

When to consider alternatives

Court-ordered partition can be costly and may reduce sale value (auction sales may fetch less than market). Consider these alternatives first:

Hire a neutral mediator (a fresh mediator sometimes breaks an impasse).
Propose a structured buyout, payment plan, or third-party sale agreement.
Sell voluntarily through a broker and split proceeds; an agreed sale avoids court costs and uncertainty.

Helpful Hints

Document everything. Keep copies of all communications and offers. Courts value a clear paper trail showing your attempts to resolve the dispute.
Name all parties. Include lienholders, mortgagees, tenants, and anyone with a recorded interest to avoid delays later.
Get a title check early. Identifying clouds on title before filing speeds resolution and avoids surprises at sale.
Know your likely costs. Expect appraisal fees, court costs, possible commissioner fees, and attorney fees. Factor these into any buyout offer or settlement demand.
Be realistic about timelines and outcomes. A court-ordered sale usually results in a market or auction sale and division of net proceeds—not a guaranteed quick cash outcome.
Ask about a party buyout. If you want the property, a court buyout based on appraisal can let you keep the property without a public sale.
Consult local counsel. Court procedures and timelines vary by county; a local Tennessee attorney can guide you through filings, required forms, and courtroom practice.

For the statutory framework governing partition actions in Tennessee, see Title 29, Chapter 27 of the Tennessee Code Annotated: TCA Title 29, Ch. 27. For the initiating statute, see Tenn. Code Ann. § 29-27-101.

If you want to move forward, talk to a licensed Tennessee attorney who handles partition and real property cases. They can evaluate the facts, file the correct pleadings, and protect your financial interests through the process.