When Co-Owners Disagree About Selling Property in Tennessee | Partition Actions Explained
Real estate ownership is often shared between two or more people. Co-ownership may arise in several situations, including when family members inherit property, business partners invest together, or former spouses retain joint ownership after a divorce.
While shared ownership can work smoothly for years, disagreements sometimes arise when one owner wants to sell the property and the other wants to keep it.
This situation can create tension and legal uncertainty. Many property owners ask the same question:
What happens if one co-owner wants to sell a property but the other refuses?
In Tennessee, the law provides several options for resolving these disputes. Understanding those options can help property owners protect their rights and determine the best path forward.
Common Situations Where Co-Ownership Disputes Arise
Disagreements between property co-owners are more common than many people realize. These disputes often arise in situations such as:
Inherited Property
When multiple heirs inherit a property, each person may have different goals. One heir may want to sell the property and divide the proceeds, while another may want to keep it in the family.
Investment Partnerships
Business partners sometimes purchase property together as an investment. Over time, partners may disagree about whether to sell the property, hold it, or redevelop it.
Divorce or Separation
Former spouses sometimes remain co-owners of real estate after a divorce. If one person wants to sell while the other wants to stay in the home, conflict can arise.
Family Property
Family members who jointly purchase vacation homes or rental properties may eventually disagree about how the property should be used or whether it should be sold.
When these disagreements occur, the type of ownership arrangement often determines what legal options are available.
Types of Property Ownership in Tennessee
Before determining what legal remedies are available, it is important to understand how the property is legally owned.
In Tennessee, co-owners typically hold property as either:
Tenants in Common
This is the most common form of shared ownership.
Each owner holds a percentage interest in the property. These ownership shares may be equal or unequal.
For example:
Owner A may own 50%
Owner B may own 50%
Or:
Owner A may own 70%
Owner B may own 30%
Each tenant in common has the legal right to sell or transfer their ownership interest.
Joint Tenants with Right of Survivorship
In this arrangement, both owners have equal ownership, and if one owner dies, their interest automatically transfers to the other owner.
This type of ownership is common among married couples but may also occur between family members or business partners.
Regardless of the ownership structure, disputes can arise when co-owners disagree about selling the property.
Can One Owner Force the Sale of a Property?
In many cases, yes.
Tennessee law allows property owners to seek a legal remedy known as a partition action when co-owners cannot agree on how to handle the property. A partition action is a lawsuit asking the court to divide or sell the property so that each owner receives their share of the value.
Partition actions are one of the most common legal tools used to resolve co-ownership disputes.
What Is a Partition Action?
A partition action is a court proceeding used to resolve disputes between property co-owners. The purpose of the lawsuit is to allow the court to divide the property fairly between the owners.
There are generally two types of partition actions.
Partition in Kind
A partition in kind physically divides the property between the owners. For example, if two people own a large parcel of land, the court may divide the property into two separate parcels so that each person owns a portion of the land.
However, this type of partition is not always practical. Dividing a house or commercial building is usually impossible.
Partition by Sale
When physical division is not practical, the court may order the property to be sold. The proceeds from the sale are then divided among the owners according to their ownership interests.
Partition by sale is the most common outcome when disputes involve residential homes or commercial buildings.
What Happens During a Partition Lawsuit?
Partition actions involve several legal steps.
Although each case is unique, the process typically includes:
Filing the Lawsuit
One owner files a lawsuit asking the court to partition the property.
The lawsuit names the other co-owners as defendants.
Determining Ownership Interests
The court reviews property records to determine each owner’s share of the property.
Evaluating Division Options
The court evaluates whether the property can be divided physically.
If not, the court may order a sale.
Sale of the Property
If the court orders a sale, the property may be sold through a court-supervised process.
Once the property sells, the proceeds are distributed among the owners according to their ownership percentages.
Can One Owner Stop the Sale?
Sometimes the owner who wants to keep the property may attempt to stop the sale. However, courts generally recognize that property owners have the right to access the value of their ownership interest. If the court determines that the property cannot be divided fairly, a sale may be ordered even if one owner objects.
That said, disputes can often be resolved without a court-ordered sale.
Alternatives to a Partition Lawsuit
Litigation is not always the best solution.
Before filing a partition action, co-owners may consider several alternatives.
Buyout Agreements
One owner may agree to buy out the other owner’s interest in the property.
This allows the owner who wants to keep the property to retain ownership while the other owner receives compensation.
Buyouts are common when one party has the financial ability to purchase the other’s share.
Negotiated Sale
Sometimes the parties agree to sell the property voluntarily and divide the proceeds.
This option often avoids the time and expense of litigation.
Mediation
In some situations, mediation can help resolve disputes between property owners.
A neutral mediator helps the parties negotiate a mutually acceptable resolution.
Complications in Co-Ownership Disputes
Co-ownership disputes sometimes involve additional legal issues, including:
Mortgage Obligations
If the property has a mortgage, determining responsibility for the debt may become part of the dispute.
Property Improvements
One owner may have paid for repairs or improvements that increased the property’s value.
The court may consider these contributions when dividing proceeds.
Rental Income
If the property has generated rental income, disputes may arise regarding how those funds should be divided.
Property Expenses
Owners may also disagree about responsibility for expenses such as:
Property taxes
Insurance
Maintenance costs
These financial issues can complicate the resolution of a partition case.
Real Estate Disputes in Growing Communities
Disputes between co-owners often arise in rapidly growing real estate markets where property values increase quickly.
In communities such as:
Franklin
Brentwood
Spring Hill
Fairview
rising property values can make disagreements about selling property more significant. One owner may want to cash out while another prefers to hold the property long-term. These conflicts sometimes lead to partition actions.
When Should You Contact a Real Estate Attorney?
If you co-own property and are facing a disagreement about selling or keeping the property, it may be helpful to consult with a real estate attorney.
Legal guidance at Wills Law, PLLC can help you:
Understand your ownership rights
Evaluate whether a partition action is appropriate
Negotiate a buyout agreement
Resolve disputes with co-owners
Protect your financial interests
Because property ownership disputes can involve significant financial stakes, addressing the issue early can help prevent prolonged conflict.