Options When Co-Owners Disagree on a Buyout Price in West Virginia
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When co-owners of real property in West Virginia cannot agree on a buyout price, they can pursue several paths:
1. Negotiation and Independent Appraisals
Each co-owner can hire a professional appraiser to determine fair market value. Comparing or averaging multiple appraisals can help narrow valuation gaps.
2. Mediation or Arbitration
Alternative dispute resolution (ADR) uses a neutral third party to guide co-owners toward an agreement. Mediation or binding arbitration often resolves disputes efficiently and at lower cost than litigation.
3. Voluntary Buy-Sell Agreement
If the deed or operating agreement includes buy-sell provisions, co-owners should follow those terms. Common clauses include right of first refusal, cross-purchase mechanisms, and set formulas for pricing.
4. Court-Ordered Partition
When informal methods fail, any co-owner may file a partition action in the circuit court under W. Va. Code §55-5-1 et seq. (§55-5-1) to force division or sale of the property.
- Partition in Kind: The court physically divides the property into separate parcels for each co-owner when feasible (§55-5-5).
- Partition by Sale: If division in kind is impractical, the court orders a public sale of the property. Net proceeds go to co-owners based on their ownership shares (§55-5-4).
The court may appoint a commissioner to value, divide, or sell the property and report back for approval.
Helpful Hints
- Document all appraisal reports and negotiation efforts in writing.
- Build a written buy-sell or co-ownership agreement before disputes arise.
- Understand local circuit court rules and costs for partition actions.
- Consult a real estate attorney early to evaluate ADR and litigation options.
- Monitor property taxes and maintenance obligations during disputes.