How to Handle Real Estate Disputes Between Co-Owners in Texas

Co-owning property can be practical and financially beneficial until it isn’t. Disputes can arise when you inherited real estate with siblings, bought an investment property with a friend, or co-signed on a home with a partner. When they do, they can become stressed and have expensive legal conflicts without the right guidance.

Fortunately, Texas law provides several paths for resolving co-ownership disputes. In this article, we’ll explain how to handle real estate disputes between co-owners in Texas and when to involve a San Antonio real estate lawyer to protect your interests.

Common Causes of Real Estate Disputes Between Co-Owners

Co-ownership arrangements vary, but common sources of conflict include:

Unequal financial contributions (mortgage payments, taxes, repairs)
Disagreements about selling or renting the property
One party using the property exclusively
Failure to maintain or improve the property
Inheritance disputes involving multiple heirs
Breakdowns in personal relationships

Unlike joint bank accounts or business ventures, real estate is not easily divisible. When co-owners cannot agree, legal intervention may become necessary.

Step 1: Review the Ownership Documents

Start by reviewing the deed, any written agreements, or contracts that outline ownership terms. In Texas, co-owners may hold title as:

Joint Tenants with Right of Survivorship
Tenants in Common
Community Property (if acquired by spouses)

Unless otherwise stated, Texas law assumes co-owners are tenants in common, meaning each person has a separate, undivided interest in the property. That means one owner cannot exclude the other, but it also means each has the right to sell or transfer their share.

A San Antonio real estate lawyer can help you interpret these documents and determine your legal standing before taking further steps.

Step 2: Try to Reach a Mutual Agreement

If the relationship between co-owners has not completely broken down, attempt to resolve the issue through negotiation. Common solutions include:

Buying out the other owner’s share
Agreeing to sell the property and divide the proceeds
Establishing clear terms for future use, expenses, or rental income

Always put the terms of any agreement in writing to avoid miscommunication. Consider working with a lawyer to draft or review the document so it will stand up if challenged later.

Step 3: Use Mediation to Avoid Litigation

If direct negotiation fails, mediation offers a non-adversarial and more affordable option. In mediation, a neutral third party facilitates productive discussion and helps both sides reach a compromise.

Mediation is often used in cases where the parties want to preserve a working relationship—such as with family members or long-time business partners. A San Antonio real estate lawyer can help you prepare for mediation and ensure your interests are clearly presented.

Step 4: File a Partition Action if Necessary

When co-owners cannot agree to a solution, Texas law allows one party to file a partition lawsuit to force a resolution.

What Is a Partition Action?

A partition action asks the court to divide or sell the property. There are two types:

Partition in Kind – The property is physically divided among the owners. This works best for large parcels of land, such as rural property or multi-lot assets.
Partition by Sale – The property is sold, and the proceeds are divided among the owners according to their ownership shares. This is the most common outcome in residential or commercial disputes.

Courts will typically order a partition by sale if the property cannot be fairly divided.

What to Expect During a Partition Lawsuit

The court determines the ownership shares.
A judge may appoint a commissioner or receiver to oversee the sale.
After the sale, proceeds are distributed, minus legal fees and any court-approved deductions.

A partition lawsuit can be time-consuming and contentious. However, it’s often the only way to break a deadlock between co-owners.

Hiring a San Antonio real estate lawyer who understands Texas partition laws is essential to ensuring your rights are fully represented throughout the process.

Additional Considerations for Co-Owner Disputes

Reimbursement Claims

In some cases, one owner may be entitled to reimbursement for costs like mortgage payments, taxes, or improvements made to the property. Texas law allows for these claims, but they must be well-documented.

Exclusive Use Issues

If one co-owner has been living in or renting out the property without sharing income or access, the other may have a claim for lost use or rental value. This can be factored into a partition action or separate lawsuit.

Tax Implications

Selling a co-owned property can trigger capital gains tax or other financial consequences. A lawyer can work with your tax advisor to help plan for potential liabilities.

How a San Antonio Real Estate Lawyer Can Help

Real estate disputes between co-owners can get legally complex fast. Having an experienced San Antonio real estate lawyer on your side ensures:

Clear analysis of your rights under Texas law
Strategic negotiation guidance
Proper drafting of agreements
Skilled representation in court, if needed

Whether you’re seeking a buyout, forced sale, or reimbursement, legal advice tailored to your situation can save you time, money, and emotional stress.

Conclusion

Co-owning property in Texas can be financially rewarding, but when disputes arise, the fallout can be significant. From family inheritances to commercial investments, understanding your rights and options as a co-owner is the first step toward resolving conflict.

If you’re dealing with a real estate dispute in Bexar County or the surrounding areas, consult a knowledgeable San Antonio real estate lawyer at Baker Law Group, PLLC. We help clients protect their property interests and move forward with clarity and confidence.