Disclaimer: This is educational information only and not legal advice. For advice about your specific situation, consult a licensed Vermont attorney.
Detailed answer — What to do when co-owners disagree about a property
If you own real estate jointly with two or more people in Vermont and the co‑owners cannot agree about selling, your primary legal remedy is a court action for partition. In Vermont, a partition action lets a judge divide the property among co‑owners or order a sale and distribution of the proceeds when physical division is impractical.
How the partition process works in Vermont
- File a civil action: You start by filing a partition action in Vermont Superior Court (the Civil Division) naming all co‑owners and any parties with an interest (for example, mortgage holders or lienholders).
- Request partition in kind or sale: Ask the court for partition in kind (a physical division of the land) or, if that is not practical or fair, for a judicial sale of the property and division of the proceeds.
- Court assessment: The judge will consider whether the property can be divided physically without materially harming any party’s interest. If the property cannot be fairly divided (typical for a single house on one lot), the court will order sale.
- Appointment of a commissioner or sale agent: The court may appoint a commissioner, referee, or other official to handle the valuation and sale. The sale may be by public auction or by private sale under court supervision, depending on the court’s order.
- Paying liens and costs: Proceeds from the sale are used first to pay mortgages, liens, court costs, and sale expenses. Net proceeds are divided among co‑owners according to their ownership shares (unless the court orders otherwise based on agreements, contributions, or equities).
- Accounting for improvements and payments: The court can credit co‑owners for mortgage payments, taxes, insurance, maintenance, or improvements they paid for, and can charge co‑owners who benefited from another’s outlay.
What you should expect
Partition actions vary in length and complexity. A straightforward case might take several months; contested cases with disputes over value, credits, or alleged misconduct can take a year or more. Filing fees, appraisal and advertising costs, and attorney fees can be significant. The court has discretion to award costs and sometimes attorney fees when a party has acted improperly, but that is not guaranteed.
Practical implications for mortgages and liens
An existing mortgage remains attached to the property until it is paid from sale proceeds. If a co‑owner wants to keep the house, they typically must refinance or buy out other owners’ shares and assume or pay off the mortgage. Any recorded liens will be satisfied from the sale proceeds in their statutory priority.
Relevant Vermont resources and statutes
- Vermont statutes and text about civil remedies and property law are available from the Vermont Legislature: https://legislature.vermont.gov/statutes/search?search=partition
- See Title 12 (Courts and Civil Procedure) for statutes and related provisions: https://legislature.vermont.gov/statutes/title/12
- Vermont Judiciary (court contact, filing rules, and forms): https://www.vermontjudiciary.org/
Alternatives to a court-ordered sale
Litigation is costly and adversarial. Consider these alternatives first:
- Negotiated buyout: Offer to buy the other owners’ shares or let one owner buy you out based on an agreed valuation or appraisal.
- Mediation: Use a neutral mediator to reach a settlement about sale timing, price, or buyout terms.
- Refinance or assume mortgage: If one owner qualifies, they may refinance to remove others from the loan and buy out shares.
- Partition by agreement: Co‑owners can record an agreement splitting the property or sale proceeds without court intervention.
Steps to take now (practical checklist)
- Gather ownership documents: deeds, title report, mortgage records, and any written agreements among owners.
- Collect financial records: property tax bills, insurance, receipts for repairs or improvements, rent records if rented.
- Get a professional appraisal or market analysis to learn value and to use in negotiations or court.
- Try negotiation or mediation; document any offers and responses in writing.
- If negotiation fails, consult a Vermont real estate or civil litigation attorney about filing a partition action and likely costs and timeline.
What an attorney can help you do
An attorney can:
- Explain procedural requirements for filing in the correct Superior Court division and jurisdiction;
- Prepare and file the complaint for partition and any necessary service of process;
- Advise on valuation, discovery, and settlement strategy;
- Represent you at hearings and manage the sale process if the court orders one.
Final points
A court‑ordered partition is a well‑established legal tool in Vermont to resolve deadlocks among co‑owners. It forces a sale or physical division when owners cannot agree. Because it can be expensive and outcomes are determined by courts, most co‑owners try negotiation, buyouts, or mediation first. If those fail, a partition action in Vermont Superior Court will be the formal route to force sale and distribute proceeds according to ownership and legal priorities.
Remember: This is not legal advice. Talk with a licensed Vermont attorney about your specific situation before taking legal action.
Helpful hints
- Document all communications and offers with co‑owners; written records help in court and mediation.
- Get an independent appraisal before making or accepting buyout offers.
- Ask about court mediation programs in Vermont — judges often encourage settlement.
- Factor in selling costs and payoff amounts for mortgages and liens when calculating a fair buyout.
- Consider timing: market conditions affect whether a sale now or later will yield higher proceeds.
- Keep the property insured and current on taxes to avoid additional liens or penalties while disputes continue.