Missouri Partition Action
A partition action is often the only remedy to real estate disputes. For example, siblings often disagree about what to do with real estate that they inherit. One sibling might want to keep it while another might want to sell it. One sibling might even take possession of the property and exclude the other siblings from entering the property. Investors buying real estate in a partnership can likewise disagree about what to do with the property and end up in a stalemate. These disputes are often bitter.
The Partition Action
Owners of real estate in Missouri can bring a partition action to resolve such disputes. The law prefers to physically divide the property “in kind”. A court may instead order a sale of the property and divide the proceeds among the owners if a division in kind is not possible. A division in kind is typically more feasible in rural areas, whereas a sale is often required of property located in a city. The court can order a sale if it finds that a partition cannot be done without “great prejudice” to those with an interest in the property. All sorts of problems would arise if the court partitioned a house situated on a city lot. A sale is often the only solution in these circumstances.
First, the court must determine the interests of the litigants in the property. Next, the court must determine whether the property can be partitioned in kind without great prejudice to any of the litigants. The court will then order a sale if the property cannot be partitioned in kind without prejudicing any of the parties. Three commissioners appointed by the court conduct a partition in kind. Either a commissioner or the sheriff may conduct a sale. An order to sell the property will state where the sale is to occur, typically on the courthouse steps, and who will conduct the sale. The sheriff or commissioner sets the date and time of the sale and advertises the sale by publishing notice.
Sale Proceeds
The person conducting the sale, typically the sheriff, collects the sale proceeds and issues a deed to the high bidder. The sheriff then files a report with the court identifying the purchaser, the amount of the proceeds received, and the costs of the sale. The court then orders payment of the sheriff’s costs from the proceeds. The court may also order from the proceeds payment of the fees of the attorney who filed the action. The remainder is distributed to the parties.
The distribution may be offset by an owner’s payment of insurance, taxes, repairs, and improvements. The court may order the amount of such payments attached as a lien to property partitioned in kind. However, the court may not enter a personal judgment against a party for such amounts.
Take-Away
A partition action should be a remedy of last resort. The cost of a partition action can be high and the proceeds low. Nevertheless, a partition action may be the only way to resolve a real estate dispute.
Michael Sewell, JD, MBA has litigated more than 100 lawsuits in federal, state, administrative, and municipal courts since 2005, involving real estate, business, and personal disputes.
Please contact Michael Sewell for an initial consultation at no charge. (314) 942-3232 | michael@sewelllaw.net.
This article is for general informational purposes only. This information is not intended as legal advice. You should consult an attorney regarding how this information might apply to your specific circumstances.
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