Forcing the Sale of Jointly Owned Property: Partition Actions in Michigan
When co-owners cannot agree to sell real estate in Michigan, you can force the sale through a partition action under Mich. Comp. Laws § 600.3301. The Circuit Court will appoint a receiver to list the property, and the legal fees, appraisal costs, and receiver commissions are typically paid directly out of the final sale proceeds.
Step-by-Step Guide to Partition Actions in Michigan
Owning property with someone else can quickly turn into a financial nightmare if one party wants to sell and the other refuses. In Michigan, the law recognizes that you cannot be forced to remain in a co-ownership arrangement indefinitely. A partition action is a specific type of civil lawsuit used to force the division or sale of jointly owned real estate. Whether you are dealing with a family cottage in Traverse City, a residential home in Mount Clemens, or commercial real estate in Ann Arbor, a partition action is the ultimate legal remedy to separate your assets.
Unmarried Couples Breaking Up
When married couples divorce, the division of their shared home is handled in family court. However, when an unmarried couple buys a home together and later separates, family court has no jurisdiction. If one partner refuses to move out or sell the house, the only legal mechanism to resolve the deadlock is a civil partition action. The court will order the sale of the property and divide the equity. Your attorney can argue for an unequal distribution of the proceeds if you paid for all the major improvements, property taxes, or the entire down payment.
Siblings Inheriting a Family Cottage (Heirs Property)
A very common scenario in Michigan involves siblings jointly inheriting a lake house or hunting cabin. Over time, disputes arise: one sibling pays all the taxes and maintenance, while others simply use it for vacations, or one sibling desperately needs the cash value of their share. When an agreement to buy out one sibling fails, filing a partition action becomes necessary. Under precedent set by Albro v. Allen, 434 Mich. 271 (MI Supreme Court 1990), joint tenants have an absolute right to seek partition, ensuring no heir is permanently trapped in an unwanted co-ownership.
Dissolved Business Partnerships
When a business partnership dissolves, the disposition of jointly owned commercial real estate must be settled. If the partners cannot agree on a buyout price for an office building or warehouse, a partition lawsuit forces the issue. The court will often order an independent commercial appraisal and mandate the property be placed on the open market, ensuring fair market value is achieved and the business debts tied to the property are paid off before the remaining cash is distributed to the former partners.
The Role of Court-Appointed Receivers and Appraisals
Once you file a Form MC 01, Michigan, State Court Administrative Office, Summons and a Complaint for Partition, the judge does not personally sell the house. Instead, if the parties still refuse to cooperate, the court will appoint a partition commissioner or a receiver. The receiver is usually a neutral real estate professional or attorney given the legal authority to sign listing agreements, accept offers, and manage the sale process without needing the stubborn co-owner's signature. The court will also order a formal appraisal to set the minimum listing price, preventing either side from sabotaging the sale by demanding an unrealistic price.
How Much Does a Partition Action Cost?
Filing the initial lawsuit in a court like the Grand Traverse County Circuit Court, Traverse City or the Macomb County Circuit Court, Mount Clemens requires a $175 filing fee. The court-appointed receiver typically takes a standard real estate commission (5% to 7%) or an hourly fee. One of the primary benefits of a partition action is how attorney fees are handled. Under Michigan Court Rules, the reasonable attorney fees incurred by the party who brings the partition suit are often apportioned among all the co-owners and paid out of the final sale proceeds, because the legal action benefited everyone by liquidating the asset.
How Long Does the Process Take?
A partition action typically takes between 6 to 12 months to complete. The mere act of filing the lawsuit and serving the uncooperative co-owner is often enough to force them to the negotiation table, resulting in a private buyout agreement within a few months. If the case goes all the way through the court system to a forced open-market sale, the timeline depends on how fast the property sells once listed by the receiver.
Frequently Asked Questions (FAQ)
Can I buy out the other owner to stop the lawsuit?
Yes. The preferred outcome of most partition cases is a buyout. The lawsuit simply forces the uncooperative owner to accept a fair market value buyout rather than holding the property hostage indefinitely.
Does the property have to be physically divided?
Michigan law prefers dividing the land (partition in kind) if possible, such as splitting a 100-acre farm into two 50-acre parcels. However, a physical split is impossible for residential homes, so the court will order a partition by sale.
Can the other owner refuse to sign the closing documents?
If the court appoints a receiver or commissioner, that person is granted the legal authority to sign the deed and closing documents on behalf of the uncooperative owner. Their refusal to sign will no longer halt the sale.
Do I need a real estate attorney for this?
Yes. Partition actions require specific pleadings, title work, and motions to appoint a receiver. You can find experienced Michigan real estate litigators in our directory of US Lawyers.
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