Tennessee: Remedies When a Co-Owner Sells Property Without Agreement | Tennessee Partition Actions | FastCounsel
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Tennessee: Remedies When a Co-Owner Sells Property Without Agreement

FAQ: Understanding Co-Owner Property Sales and Your Remedies in Tennessee

Detailed Answer

Short version: A co-owner generally has specific remedies if another co-owner sells property without the first co-owner’s agreement. Common steps include asking the court to partition the property (divide or order a sale), filing a quiet-title or rescission action if the sale was wrongful or fraudulent, and seeking monetary relief for damages. The exact remedy depends on the form of ownership, whether the deed was forged or fraudulent, and the chain of title.

How co-ownership works in Tennessee

Most co-owners hold property as tenants in common. Each tenant in common owns an undivided share and may sell or transfer that share without the other co-owners’ consent. A sale by one tenant in common transfers only that co-owner’s share, not the entire title. Spouses sometimes hold title as tenancy by the entirety (where one spouse cannot unilaterally convey), so the form of ownership matters.

When a co-owner sells without agreement — what that sale usually means

  • If the seller was a tenant in common: the buyer generally receives only the seller’s fractional interest. The other co-owner still owns their share.
  • If the deed was forged or procured by fraud: the sale may be voidable and subject to challenge in court.
  • If ownership was by tenancy by the entirety (rare outside married couples): a unilateral sale by one spouse likely won’t transfer valid title.

Primary legal remedies in Tennessee

1. Partition action (most common practical remedy)

A co-owner can ask a Tennessee court to divide the property physically (partition in kind) or order a sale and divide proceeds (partition by sale). Partition removes co-ownership and gives each party either a physically divided portion or their share of sale proceeds. Partition actions are available in Tennessee courts under the state’s partition laws; see Tennessee statutes on partition for the procedural rules. For statutory guidance, see the Tennessee Code and the partition provisions on the Tennessee General Assembly site: https://www.capitol.tn.gov/.

2. Quiet-title and declaratory-judgment actions

If the sale clouded title (for example, an improper deed was recorded), a co-owner can file a quiet-title action to remove the cloud and clarify ownership. A declaratory judgment can state legal rights and ownership status. These actions are appropriate when the dispute centers on who holds legal title.

3. Rescission, cancellation, and injunctions for fraud or forgery

If the deed was forged, signed under false pretenses, or the buyer knew of fraud, a court can cancel the deed, set aside the sale, and order the deed stricken from the public record. You may also seek an injunction to stop further transfers or foreclosure while the dispute is decided.

4. Damages and accounting

A co-owner may be entitled to money damages where the sale caused loss—e.g., conversion of an owner’s property interest, unjust enrichment, or lost rents. An accounting can force the seller or buyer to disclose proceeds and distributions if a sale happened improperly.

Practical steps to take immediately

  1. Obtain a copy of the recorded deed and the current chain of title from the county register/recorder.
  2. Collect documents showing your ownership share (deed, tax bills, mortgage statements, insurance, communications).
  3. Contact title insurance if a policy exists. Title insurance may cover costs of defending title or correcting title defects.
  4. Consider asking the court for a temporary injunction if a foreclosure, eviction, or further transfers are imminent.
  5. Talk to a Tennessee real property attorney promptly to evaluate which remedy fits the facts.

Which court handles these disputes?

Partition, quiet-title, rescission, and other ownership disputes are state-court matters. In Tennessee, you will typically file in the court with jurisdiction over real property disputes in the county where the land lies—this may be the circuit or chancery court depending on local practice. The Tennessee Code and local court rules describe procedures; see the Tennessee General Assembly site for statutory authority: https://www.capitol.tn.gov/.

Timing and defenses

Statutes of limitation and specific defenses (e.g., purchaser in good faith, equitable estoppel) can affect outcomes. If a buyer paid value and recorded the deed without notice of problems, that can complicate rescission. Prompt action generally preserves more options.

Example hypotheticals

Hypothetical A — Two siblings own a parcel as tenants in common. One sibling sells “the property” to a buyer and records a deed. The buyer receives only the selling sibling’s fractional share. The other sibling can file for partition to sell the entire property and divide proceeds, or seek a quiet-title action and/or an accounting if the sale included rents or improvements.

Hypothetical B — A title search shows a deed recorded with a forged signature. The non-consenting co-owner files a quiet-title and fraud action to cancel the forged deed and seeks damages. A court can set aside the forged document and restore the owner’s title.

Statutory reference

Tennessee’s statutes and court rules set procedures for partition, quiet-title, and remedies for conveyance problems. For statutory language and filing procedures, consult the Tennessee Code available from the Tennessee General Assembly: https://www.capitol.tn.gov/. Look under the Code sections addressing partition and real property for controlling provisions.

Important: This overview explains typical remedies under Tennessee law but does not cover every situation. Specific facts can change which remedy is best.

Disclaimer: I am not a lawyer. This information is educational and not legal advice. For legal advice about your situation, consult a licensed Tennessee attorney.

Helpful Hints

  • Act quickly. Early steps like obtaining deeds and title reports and contacting title insurance can preserve options.
  • Check how the co-owners took title. If title is by tenancy in common, a unilateral sale transfers only that owner’s share; if by entirety, special rules apply.
  • Get a full chain-of-title search from the county recorder to see all recorded instruments and identify potential forgeries or clouds.
  • If you suspect fraud or forgery, document communications, and avoid confronting the purported buyer alone—consult counsel first.
  • Consider mediation if relationships matter; courts often allow alternatives to long litigation.
  • Budget for court costs and possible sale costs. Partition sales can incur appraisal, advertising, and brokerage expenses.
  • Keep copies of tax bills, insurance policies, mortgage payments, improvements, and any evidence of exclusive possession or payment of expenses—these facts affect distribution and remedies.
  • Talk to a Tennessee real-property attorney about filing for partition, quiet title, or an injunction. Local counsel can point to the exact statute and court procedures that apply in your county.

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.