Sandra owns a 40% interest in a rental property in South Bend, Indiana as a tenant in common with two other investors. Sandra wants to sell her interest but her co-owners refuse to buy her out or agree to sell the whole property. What legal remedy is available to Sandra under Indiana law?
Correct Answer
B) Sandra can file a partition action in Indiana court to force a division or sale of the property
Under Indiana law, a tenant in common who wishes to end the co-ownership arrangement may file a partition action in court. The court can order either a physical partition of the property (division into separate parcels) or, when physical partition is impractical, a partition by sale where the property is sold and the proceeds are distributed among the co-owners in proportion to their interests. Sandra's 40% interest entitles her to 40% of the sale proceeds.
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Related Topics & Key Terms
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In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
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