Detailed Answer
When co-owners in Vermont cannot agree on sale logistics or sharing costs for jointly held real estate, Vermont law provides a clear path through a court-supervised partition action. Under 27 V.S.A. § 501–531, any co-owner may ask the Superior Court to divide or sell the property and allocate proceeds.
1. Partition in Kind or by Sale
The court will first consider whether it can divide the property physically. This is called partition in kind. If a physical division is not practical, the court orders a partition by sale. See 27 V.S.A. § 511 (partition in kind) and 27 V.S.A. § 521 (sale procedure).
2. Court Process and Cost Allocation
The process typically unfolds as follows:
- A co-owner files a complaint for partition in the county where the property lies.
- The court appoints an appraiser and sets a hearing date.
- If the court orders a sale, it supervises bidding or authorizes an auction.
- Costs for appraisal, advertising, auctioneering and court fees are deducted from sale proceeds before distribution. The court allocates costs proportionately under 27 V.S.A. § 521.
3. Alternative Dispute Resolution
Before or during a partition action, co-owners can use mediation or arbitration under the Vermont Dispute Resolution Act. A neutral mediator helps parties negotiate terms for sale logistics or cost sharing without going to trial. See 12 V.S.A. § 5701.
4. Voluntary Buy-Out Agreement
Co-owners may negotiate a buy-out in which one owner purchases the other’s interest at an agreed price. A written agreement should specify how to value the share, payment terms, and how to handle closing costs.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an attorney for guidance on your specific situation.
Helpful Hints
- Review any existing co-ownership or tenancy agreements for buy-out clauses.
- Obtain a neutral appraisal to establish fair market value early.
- Consider mediation to reduce litigation costs and preserve relationships.
- Ask the court to allocate sale costs proportionally under Vermont law.
- Keep written records of all offers, expenses and communications with co-owners.