Can One Co-Owner Force the Sale of Commercial Real Estate in Illinois?

 Posted on October 15, 2026 in Commercial Real Estate

In Illinois, one co-owner can seek to force the sale of commercial property through a partition lawsuit. However, the court must first consider whether the property can be divided instead of sold. Certain ownership agreements and legal protections may also affect the outcome.

If you are dealing with a commercial property ownership dispute in 2026, our Oak Brook, IL real estate attorneys can review your ownership documents and explain your options.

What Is a Partition Action for Commercial Real Estate in Illinois?

A partition action is a lawsuit that allows a co-owner to ask the court to divide jointly owned real estate or order its sale. Under 735 ILCS 5/17-101, co-owners can request partition even if the other owners disagree. They do not usually need to prove wrongdoing or hardship.

Illinois courts consider two possible outcomes. Partition in kind means physically dividing the property among the owners. Partition by sale means selling the property and dividing the money.

Courts prefer physical division when it can be done fairly. However, an office building, shopping center, or warehouse can be difficult to divide fairly. In these cases, the court can order a sale if dividing the property would seriously harm the owners’ interests.

Who Can File a Commercial Real Estate Partition Lawsuit in Illinois?

A co-owner who holds property as a joint tenant or tenant in common can usually request partition, regardless of their ownership percentage. For example, someone who owns 10 percent of a building can request partition even if another person owns the remaining 90 percent.

If an LLC or corporation owns the property, its members or shareholders do not personally own the real estate. They usually cannot file a partition action against property owned by the business. Instead, they may need to consider a buyout, business dissolution, or another legal remedy.

Different rules apply when an Illinois land trust owns the property. The people who benefit from the trust do not directly own the real estate, which limits their ability to request partition.

Before taking legal action, an attorney can review the deed, ownership agreements, and other documents to determine what rights each person has.

How Does a Commercial Property Partition Lawsuit Work in Illinois?

A partition case begins when a co-owner files a complaint in the county where the property is located. The lawsuit identifies the property, its owners, and their ownership interests. The steps that follow include:

• Reviewing ownership rights. The court determines each owner's legal interest and addresses any disputes.

• Considering physical division. The court decides whether dividing the property would unfairly harm the owners.

• Ordering a sale. If physical division is not practical, the court may order a public sale. Certain inherited properties follow different rules.

• Dividing the proceeds. The court determines how the money should be distributed after applicable costs and adjustments.

Some inherited properties qualify for special protections under the Illinois Uniform Partition of Heirs Property Act. These can include allowing co-owners to buy another owner's interest or using an open-market sale. The court could also consider whether one owner paid more than their share of the mortgage, taxes, insurance, or necessary repairs. An owner who collected rent without sharing it may also have to account for that income.

Under 735 ILCS 5/17-125, the court decides how to fairly divide legal costs, including reasonable attorney fees. Different rules may apply if a co-owner raises a serious legal challenge.

Can a Co-Ownership Agreement Prevent a Forced Property Sale in Illinois?

An ownership agreement can sometimes limit the right to force a sale. Other agreements give co-owners ways to resolve disputes without going to court.

Possible protections include:

• Partition waivers that limit an owner's right to request partition

• Buy-sell agreements that establish how one owner can purchase another owner's interest

• Rights of first refusal that give existing owners the opportunity to buy an interest before it is sold to someone else

• Rights of first offer that require an owner to approach co-owners before seeking another buyer

• LLC operating agreements that establish ownership, management, and exit procedures

• Dispute resolution clauses that require mediation or another process before litigation

Not every agreement prevents a partition lawsuit. Its terms must be reviewed to determine whether it limits that right. Illinois courts may enforce reasonable partition waivers, although restrictions that last indefinitely can raise legal concerns. Even after a lawsuit begins, the owners may still negotiate a buyout or another agreement to avoid a forced sale.

Contact Our Naperville, IL Commercial Real Estate Attorneys

At Lindell & Tessitore, P.C., our attorneys can help you understand your ownership rights. Attorney Dennis Lindell holds an advanced degree in real estate. He focuses on structuring, drafting, and negotiating real estate agreements. Attorney Vincent Tessitore has represented both borrowers and lenders. He brings valuable experience to transactions involving commercial property financing.

Contact us at 630-778-3818 to talk to our Oak Brook, IL purchases, sales, zoning, and development lawyer today.