When multiple parties co-own real estate in Virginia and can’t agree on how to handle a sale or share expenses, you have several legal paths to resolve the dispute.
1. Partition Action Under Virginia Code §8.01-260
A partition action lets any co-owner ask the circuit court to divide or sell the property:
- In-kind division: The court splits the land into distinct parcels if it can do so fairly and without harming market value.
- Partition by sale: If dividing the land isn’t practical, the court orders a public sale. After paying commissions and expenses, the court distributes net proceeds according to each owner’s share.
The court appoints commissioners to oversee the sale and may adjust individual shares based on expenses each owner paid (e.g., taxes, repairs). See Va. Code §8.01-260 and related provisions in Chapter 7 of Title 8.01.
2. Mediation and Alternative Dispute Resolution
Before or after filing a partition action, co-owners can use mediation or binding arbitration to reach a voluntary agreement. A neutral mediator helps you negotiate sale timing, listing price, and cost sharing. Mediation often costs less and resolves disputes faster than court.
3. Buyout Agreements
Co-owners may agree that one party buys out the others at an agreed price. This process requires:
- Appraisal by a licensed real estate appraiser.
- Drafting a buyout agreement that covers payment terms and transfer logistics.
A written buyout avoids the uncertainty of a court-ordered sale and can preserve relationships.
4. Accounting for Expenses
If one co-owner pays more than their share of mortgage, insurance, taxes, or repairs, the court can require an accounting. The court credits owners who paid out-of-pocket, reducing or increasing their share of sale proceeds.
Disclaimer
This article is for educational purposes and does not constitute legal advice. Consult a licensed attorney in Virginia for guidance specific to your situation.
Helpful Hints
- Review your deed or ownership agreement for sale and expense clauses.
- Obtain a professional real estate appraisal before negotiations.
- Consider alternative dispute resolution to save time and costs.
- Track all payments for taxes, repairs, and maintenance in writing.
- Consult a Virginia real estate attorney early to understand court procedures.
- Be prepared for court fees and commissioner expenses in a partition action.
- Keep communication open—amicable solutions often avoid litigation.