Disclaimer: This is general information and not legal advice. For advice about your specific situation, consult a licensed Wisconsin attorney.
Detailed Answer
Short answer: Yes. Under Wisconsin law you can negotiate a buyout of your co-owner’s interest instead of filing a partition action. Voluntary agreements between co-owners are generally permitted and often encouraged because they save time, expense, and uncertainty. If you and the co-owner reach terms, you can document the buyout and transfer title without involving the court.
How this works in practice (with a simple hypothetical): imagine you and a sibling each own a 50% undivided interest in a house in Dane County. You want to keep the house, so you offer to pay your sibling the fair market value of their 50% share. If your sibling accepts, you each sign a purchase agreement, arrange for financing (if needed), close through a title company or attorney, and record a deed transferring the sibling’s interest to you. Once recorded, the sibling’s interest ends and you own the property outright (subject to any mortgages or liens that remain).
Why a negotiated buyout is often better than court
- Lower cost: No court filing fees, court-appointed referee costs, or multiple appraisals paid for by the parties.
- Faster resolution: Parties control timing and closing schedule.
- Predictability: You can agree on price, closing conditions, and allocation of costs in advance.
- Preserves relationships: Negotiation and mediation are less adversarial than litigation.
When negotiation may not work
If the co-owner refuses to sell, will not accept a reasonable offer, or you cannot agree on key terms (price, who pays liens, prorations, closing date), then you can file a partition action under Wisconsin law. The statutes governing partition are in Chapter 842 of the Wisconsin Statutes (see generally Wis. Stat. ch. 842).
If the court finds division in kind is practicable, it may divide the land among owners. If division is impracticable, the court may order sale and distribution of proceeds (Wis. Stat. § 842.04). A partition by sale can be expensive and can force a sale even if one co-owner wants to keep the property.
Key steps to negotiate and complete a buyout in Wisconsin
- Get a reliable current market valuation. Use an independent, licensed appraiser or broker opinion to set a fair number.
- Decide buyout mechanics: lump-sum payment, promissory note, mortgage assumption, or refinancing. Confirm mortgage lender rules — many mortgages require lender approval for changes in ownership.
- Draft a written purchase and sale agreement that spells out price, escrow, liens, prorations, closing date, repairs, and any contingencies.
- Close through a title company or attorney. Order title search and title insurance to remove clouds on title and ensure clear transfer.
- Record the deed with the county register of deeds. Make sure any mortgage payoff or new financing is handled at closing.
Practical legal issues to watch for under Wisconsin law
- Liens and mortgages: A buyout does not automatically remove existing mortgages—make sure payoffs/assumptions are handled in the transaction.
- Tax consequences: Capital gains, gift tax issues (if selling below market), and transfer tax can arise. Consult a tax advisor.
- Co-ownership form: Tenancy in common vs. joint tenancy can affect rights (e.g., survivorship). Confirm how your interest is held.
- Uncooperative co-owners: If a co-owner hides assets or refuses reasonable offers, a partition action under Wis. Stat. ch. 842 is available as a remedy (see Wis. Stat. § 842.01).
- Referee and sale process: If court-ordered sale is necessary, Wisconsin law provides procedures for sale and distribution—expect additional costs and delays (Wis. Stat. § 842.04).
Helpful Hints
- Start with a neutral appraisal to anchor negotiations. An objective number reduces disputes.
- Put offers in writing. A clear written proposal removes ambiguity and can speed acceptance.
- Consider mediation. A mediator can help break deadlocks without court.
- Use escrow and title professionals for closing. They protect both parties and ensure proper recording.
- Check mortgages and HOA rules early. A lender or association may have approval or payoff requirements.
- Document everything. Keep signed agreements, appraisal reports, payoff statements, and recorded deeds in a secure place.
- If you fear delay or bad faith from the co-owner, consult an attorney about filing a partition action as a fallback. Chapter 842 governs partition suits in Wisconsin (Wis. Stat. ch. 842).
Negotiating a buyout is often the fastest, most cost-effective route to resolving co-ownership. But protect yourself by using professional valuations, proper written agreements, and experienced closing agents. If negotiations stall, Wisconsin’s partition statutes provide a court remedy, but that route is typically slower and costlier.
Reminder: This article explains general rules under Wisconsin law and is not a substitute for personalized legal advice.