Yes, all lawsuits are expensive. A litigation guaranty from a title company is needed. The premium depends on the value of the property, but budget at least $500.00. Filing the lawsuit is $425.00. Serving each defendant will be at least $75.00 each. A notice about the lawsuit should be recorded. That requires a certified copy from the court's clerk and then recording it with the recorder's office, and then serving it on al the defendants. And I haven't even gotten to the lawyer's fees.
The court will probably appoint a receiver or a referee to sell the property. You and your co-owner pay that person's fees. You will incur a full 6% commission and about 1% in other closing costs. To get full value, someone is going to have to advance funds for some clean-up and sprucing up of the property, and for staging (temporary furniture).
If the other owner or a tenant is occupying the property and refuses to leave, a court order will be required. More legal work and delay.
In the end, there will be a hearing to approve the sale negotiated by the receiver or referee. Many judges will allow open bidding at that hearing. If the judge follows that procedure, it tends to lower the price offered by the buyer signing the contract, since that seller could be overbid. On the other hand, I have seen the bid price at such a hearing, as much as double the contract price. More often, the buyer gets a bargain.
If you hired me, I would start by explaining all of this to your co-owner, in order to persuade her or him to agree to a sale or refinancing to buy you out. I have never had to actually file a partition action. As a compromise, you might end up paying your co-owner's loan fees to refinance or moving expenses to move out. Such a compromise would be a lot cheaper than a lawsuit.
If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business.
Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need.
Dana Sack
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