Owning real estate with another person can become stressful when one of you wants to sell and the other does not. You may feel stuck with shared expenses and an ownership arrangement you no longer want.
If you share ownership as a joint tenant or tenant in common, Indiana law may allow a partition action. Different rules apply when married couples own property as tenants by the entirety because one spouse generally cannot divide that ownership interest without the other spouse’s consent. This court-supervised process provides a structured way to resolve disputes when co-owners cannot agree on the real estate’s future.
What happens during a partition case?
The person seeking partition files a request that identifies the real estate and each owner’s share, then must obtain a title search and submit the results to the court.
Once the case formally includes all interested parties, the court must refer the dispute to mediation within 45 days. Unless all parties waive the requirement, the court appoints a licensed real estate appraiser, who must file a report before mediation begins.
Mediation allows you and the other owners to negotiate a resolution, such as agreeing on a sale or having one owner purchase another’s interest.
What happens if you still cannot agree?
If you do not reach an agreement within 60 days after the mediation order, Indiana law requires the parties to proceed with a sale. The parties may agree on a preferred method of sale, such as listing the property through a real estate professional. Otherwise, the court orders the parties to select an auctioneer. If they do not, the sheriff may conduct the sale.
Know what can affect your final share
Your ownership percentage does not always equal the amount you ultimately receive from a sale. Liens, certain taxes or assessments, title-search costs and reasonable sale expenses may come out of the proceeds first. Evaluating those financial obligations can provide a more realistic estimate of what you may receive after the transaction.
