Legal Remedies for a Co-Owner After an Unauthorized Sale of Real Property in Vermont
Disclaimer: This is general information only and not legal advice. Consult a licensed Vermont attorney about your specific situation.
Detailed Answer — What a Vermont co-owner can do
If one co-owner attempts to sell or conveys an interest in jointly owned real property without the agreement of the other co-owners, the remedies depend on the type of ownership (tenancy in common vs. joint tenancy), the exact deed language, whether the sale is of the entire estate or only that co-owner’s share, whether the buyer recorded the deed, and whether fraud, forgery, or lack of authority is present.
1. Immediately determine what was actually conveyed
- If the selling co-owner transferred only their fractional interest (their share), the buyer generally obtains title to that share only. A single co-owner cannot normally sell the entire property without consent of others unless they had legal authority to do so.
- If the deed purports to convey the whole property, you must examine the chain of title and the recording to see whether the buyer claims to be a bona fide purchaser for value and whether the deed was recorded.
2. Common legal remedies in Vermont
- Quiet title action: File a lawsuit to establish or clear the co-owner’s title. This can remove a cloud on the title created by an improper deed or dispute about ownership.
- Action for cancellation or rescission of deed: If the deed was obtained by fraud, forgery, misrepresentation, undue influence, or if the signer lacked capacity or proper authority, a court can cancel the deed or rescind the conveyance.
- Constructive trust or equitable relief: If a purchaser took title with notice of wrongdoing, a court may impose a constructive trust on the property or the sale proceeds to prevent unjust enrichment.
- Partition action: If co-owners cannot agree, a co-owner may seek partition in court. The court can physically divide the land when feasible or order a sale and divide proceeds according to each owner’s interest. If a prior sale to a third party complicates matters, the partition process can determine competing ownership interests and distribute proceeds accordingly.
- Injunction or lis pendens: Before a sale closes or after a conveyance is recorded, a co-owner can ask the court for an injunction to block further transfers or record a notice of pending litigation (lis pendens) so potential buyers know about the dispute.
- Damages and accounting: A co-owner may seek money damages, an accounting of proceeds, or an order compelling an accounting if one co-owner misappropriated funds or sold property in breach of duties.
3. How recording and notice affect rights
Recording a deed gives public notice. A subsequent buyer who records may have stronger protection if they purchased in good faith and without notice of prior unrecorded interests. Because recording rules and protections can be outcome-determinative, obtain a full title search promptly. See Vermont statutes and the state recording system for details: Vermont Statutes (searchable).
4. Practical examples (hypothetical)
Example A: Co-owner A sells “the property” to Buyer B without Co-owner C’s consent. If A only owned a 50% tenancy-in-common share, Buyer B generally receives that 50% share. Co-owner C can sue to quiet title, ask the court to partition the property, or seek an injunction if the sale was obtained by fraud.
Example B: Co-owner A forges Co-owner C’s signature, conveys full title to Buyer B who records. If C proves forgery, a court can cancel the forged deed and quiet title in favor of C despite the record; but if Buyer B is a bona fide purchaser without notice, outcome issues become more complex and require immediate legal action.
5. Timing and statutes of limitation
Time matters. Pursuing injunctive relief early can prevent loss of the property or dissipation of proceeds. Statutes of limitation apply to different claims (e.g., quiet title, fraud, breach of fiduciary duty). For current statute text and to identify deadlines that apply to your claim, review Vermont statutes at the legislature site and consult an attorney promptly: https://legislature.vermont.gov/statutes.
6. When a buyer records and claims to be good-faith purchaser
Even if a purchaser records a deed, a court can set aside a conveyance obtained by fraud, forgery, or illegal conduct. However, buyer protections and the priority of recorded instruments can complicate recovery—another reason to act quickly and get legal counsel.
7. Role of title insurance and county recording
If there is title insurance, file a claim with the insurer. A title company that insured a bad title may be liable for losses; they often defend the insured or pay to resolve a defect. Also, check the county land records to confirm what was recorded and when.
Practical next steps — what to do immediately
- Obtain a copy of the deed and chain of title from the county land records.
- Do not remove or alter anything on the property and preserve all correspondence and documents.
- Contact a Vermont real property attorney experienced in co-ownership, quiet title, and partition issues.
- If sale is imminent or a closing is scheduled, consider an emergency motion for injunctive relief and record a lis pendens to warn potential buyers.
- Get a title search and notify any title insurer involved.
- Collect witness statements and documentary evidence if fraud, forgery, or misrepresentation is suspected.
Helpful Hints
- Act quickly. Recording priorities and statutes of limitation can bar later claims.
- Check whether the co-ownership is as tenants in common or joint tenants—this affects remedies and rights on sale or death.
- If you suspect forgery or criminal wrongdoing, file a police report in addition to civil action—criminal charges can support your civil case.
- Keep the original deed and all communications with the selling co-owner and buyer. Photocopies and emails are also useful.
- Do not try to forcibly retake possession of property—use legal channels to avoid criminal liability.
- Consider title insurance and review any existing policies early. Title companies often have procedures for resolving contested conveyances.
- Expect costs. Partition and quiet title litigation can be time-consuming; weigh the economic value of the property against litigation expense, but do not delay if rights are threatened.
For statutory language and updates, start at the Vermont General Assembly statutes site: https://legislature.vermont.gov/statutes. For court procedures and filings, check the Vermont Judiciary information pages: https://www.vermontjudiciary.org/.