Practical Guide: Offering a Buyout to Co-Owners in a Texas Partition Case

Short answer: You can make a buyout offer at any time, including after a partition action starts. A voluntary buyout is usually faster, cheaper, and gives you more control than a court-ordered sale. If the co-owners agree, submit a written agreement or proposed judgment to the court. If they don’t agree, you may need to use negotiations, mediation, or ask the court to approve a settlement that replaces the sale. For legal authority on partition actions in Texas, see the Texas Property Code, Chapter 23: https://statutes.capitol.texas.gov/Docs/PR/htm/PR.23.htm.

Detailed answer — what you need to know

In Texas a partition action lets one or more co-owners ask a court to divide property among owners or to order sale and split the proceeds. The parties may agree at any point to an alternative resolution, including one co-owner buying the others’ interests. The court generally welcomes consensual resolutions because they avoid the cost and unpredictability of forced sale. See Texas Property Code, Chapter 23: PR Ch. 23.

Step-by-step: how to make a buyout offer

1. Get a reliable valuation. Order an independent appraisal or obtain multiple market-comparable analyses. Use clear valuation data to support your offer.
2. Check liens, mortgages, and encumbrances. Pull a title report and demand payoff statements for any mortgages or liens. The buyout offer should account for these obligations.
3. Decide your structure and price. Will you pay cash at closing, finance the purchase, or offer seller financing? Specify price, payment schedule, and whether you’ll assume debts.
4. Put the offer in writing. Prepare a written purchase offer or term sheet with: buyer and seller names, property description, price and adjustments, contingencies (title, survey, inspection), earnest money, closing timeline, and proof of funds or loan preapproval.
5. Deliver the offer professionally. Send the written offer to all co-owners (and their counsel if they have one). Use certified mail, email with read receipts, or hand delivery so you have proof of delivery.
6. Propose a deadline and next steps. Give a reasonable response deadline and outline steps for acceptance (signing, depositing earnest money, scheduling closing).

If a partition lawsuit is already pending

If someone has filed for partition, you still can buy out co-owners. Typical paths:

• Negotiate a settlement and submit to the court. If co-owners agree, prepare a written settlement and a proposed agreed judgment or order reflecting the buyout. File the agreement and proposed order with the court and ask the judge to enter it. Courts generally approve consensual dispositions that resolve the partition claims.
• Ask the court to stay the sale. If a sale is scheduled, file a motion or agreed stipulation asking the court to delay or cancel the sale while parties finalize the buyout. Provide proof of progress toward closing (signed agreement, escrow instructions, proof of funds).
• Use mediation or court settlement conferences. Judges often encourage mediation in partition cases. A mediator can help reach a buyout agreement.

The relevant statutory framework is in Texas Property Code, Chapter 23: https://statutes.capitol.texas.gov/Docs/PR/htm/PR.23.htm. For court procedure and filings, consult local rules and the judge’s standing orders in the county where the case is filed.

What to include when you present a buyout to the court

• Signed written agreement or term sheet accepted by all selling co-owners.
• Proposed agreed judgment or order describing the conveyance.
• Proof of funds, loan commitment, or escrow instructions showing you can close.
• Title report and proposed deed or conveyance documents.
• Evidence of valuation (appraisal) supporting the price.

If co-owners refuse the offer

If others reject the buyout, your options include:

• Increase or improve the offer (better price, quicker close, assumption of liens).
• File motions in the partition case asking the court to consider alternatives, or continue the sale to allow more time to negotiate.
• Proceed to partition by sale — if the court orders sale, you can still attempt to purchase the property at the sheriff’s sale or public sale, subject to the sale terms.

Helpful Hints

• Start with an appraisal. A neutral appraisal reduces disputes and strengthens your position.
• Offer a clear timeline and proof of funds. Co-owners are more likely to accept if they see a quick, foolproof closing plan.
• Use escrow for funds and deed handling. An escrow agent reduces trust issues and shows good faith.
• Consider seller financing or a structured payout if co-owners want ongoing income instead of a lump sum.
• Keep communications in writing. Written offers, acceptances, and counteroffers are easier for the court to enforce than oral promises.
• Don’t ignore liens or tax consequences. Buying an interest can trigger assumptions of debt or tax events. Talk to tax counsel if needed.
• Consider mediation early. A neutral mediator often gets co-owners to agree where direct negotiation fails.
• Consult a real estate attorney licensed in Texas to prepare closing documents and submit agreed orders to the court.

Disclaimer: This article explains general information about Texas partition and buyout options. It is not legal advice. For advice specific to your situation, contact a licensed Texas attorney.