What to expect when mediation does not resolve a dispute over jointly owned land under Tennessee law
Detailed answer — Overview of a partition action in Tennessee
If parties who own real property together cannot settle their dispute through mediation, one owner can ask a court to force a division or sale of the property by filing a partition action. Tennessee’s partition statutes govern these cases. See Tenn. Code Ann. § 29-27-101 et seq. (partition statutes): https://www.capitol.tn.gov/legislation/statutes/29/29-27-101.html.
Key points about how a partition action typically works in Tennessee:
- Where to file: The action must be filed in the county where the land is located — generally in the court that has jurisdiction over real estate disputes (the local chancery or circuit court, depending on county practice).
- Who must be joined: All co-owners and known lienholders (mortgagees, judgment creditors, and others with recorded interests) must be named so the court can adjudicate who gets what and clear title before selling or dividing.
- Types of partition: The court can order partition in kind or a partition by sale. Partition in kind divides the land into separate parcels so each owner ends up with a physical portion. If division in kind is impracticable or would substantially injure the owners’ interests, the court will order a sale and divide the proceeds.
- Preference for division in kind: Courts generally prefer dividing property in kind when it’s feasible and fair. If the land can’t be divided fairly, the court will order a sale (public auction or other court-directed sale) and distribute proceeds according to ownership shares after paying liens and costs.
- Appraisals and commissioners: The court commonly appoints commissioners or referees to inspect and appraise the property and to recommend how to divide it or how a sale should be conducted.
- Sale process and distribution: If the court orders a sale, it will set the procedure (often a public sale supervised by the court or commissioner). Sale proceeds pay taxes, recorded liens, court costs, and expenses. Remaining proceeds are distributed to owners according to their legal interests (percentage ownership) unless the court adjusts shares to reflect contributions, improvements, or equities.
- Adjustments for contributions and improvements: The court can make equitable adjustments. For example, an owner who paid the mortgage, made substantial improvements, or paid taxes may ask the court for allowances or credits against the proceeds. The court weighs evidence and equitable factors in making adjustments.
- Costs and attorney’s fees: Court costs and costs of sale are usually paid from the sale proceeds. Recovery of attorney’s fees requires a statute, contractual agreement, or exceptional equitable circumstances; the court does not routinely award fees just because one owner sued for partition.
Typical timeline and steps after filing
- File complaint: A complaint for partition is filed and served on all co-owners and lienholders.
- Pleadings and responses: Defendants respond and may assert counterclaims (e.g., claims for credit for improvements, claims of superior title, or requests for delay to attempt settlement).
- Pretrial proceedings: The court may order inspections, appraisals, or mediation attempts before ordering partition. Evidence about boundaries, surveys, improvements, and contributions will be gathered.
- Commissioner/Appraiser appointment: If needed, the court appoints a commissioner to examine, appraise, and recommend division or sale terms.
- Hearing and order: The court hears evidence and then issues an order either (a) dividing the property in kind, or (b) ordering a sale—often setting minimum sale terms or approving a sale method.
- Sale and distribution: The sale is conducted as ordered; proceeds pay liens, taxes, and costs, and the court enters a final distribution order.
Special situations that change the outcome
- Tenancy by the entirety: Property owned as tenancy by the entirety (between spouses) is generally not subject to unilateral partition by one spouse. If ownership is by entireties, different rules apply.
- Liens and mortgages: A mortgage or other lien remains attached; sale proceeds must satisfy recorded liens before owners share net proceeds.
- Boundary disputes or clouded title: The court may first resolve competing title claims or boundary disputes before dividing or selling.
- Buyout option: Often, a co-owner can buy out the others’ shares at a court-determined value to avoid sale. Courts commonly permit and sometimes order buyouts when feasible.
Practical and financial consequences
Partition litigation can take months to over a year depending on complexity, appraisals, and scheduling. Costs include filing fees, appraisal and survey fees, commissioner fees, sale costs, and attorneys’ fees if they are awarded. A forced sale often yields less than an orderly private sale, so owners sometimes prefer negotiating a buyout or private sale to maximize value.
When to get help
Because partition actions affect title, liens, taxes, and equitable rights, consult a Tennessee attorney experienced in real property litigation before filing or defending a partition suit. An attorney can advise whether a buyout, negotiated sale, or partition action is best, identify all necessary parties, and help preserve evidence of payments or improvements that may affect distribution.
Important: This overview summarizes general Tennessee practice under the partition statutes (Tenn. Code Ann. § 29-27-101 et seq.). It does not create an attorney-client relationship and is not a substitute for legal advice.
Helpful hints — preparing to file (or respond) to a partition action
- Collect deeds, title insurance, mortgage statements, tax bills, and any written agreement among owners.
- Gather proof of payments: who paid mortgage, taxes, insurance, utilities, and who made improvements (receipts, cancelled checks, bank records, contractor invoices).
- Get a recent survey or ordered appraisal if you have one; if not, be prepared for the court to order one.
- Identify all lienholders: check the county property records for mortgages, mechanic’s liens, or judgments that may affect distribution.
- Consider negotiating a buyout or private sale early — you can save time and costs compared to a court-ordered sale.
- Be prepared to explain contributions: courts may adjust distributions based on equitable contributions and improvements.
- Keep clear communication lines with co-owners — many partition suits settle once a realistic buyout number or sale plan is discussed.
- Check whether ownership is tenancy by the entirety (spouses) — that status can prevent unilateral partition.