When a loved one passes away and leaves a property behind, it’s common for multiple beneficiaries—often siblings—to inherit it. While this may seem like a straightforward process, sharing ownership of an inherited home can quickly become complicated. Differing opinions, emotional connections, and financial interests can lead to challenges in deciding what to do with the property. Stone & Sallus can guide you through the legal process, solutions, and common disputes that arise when managing inherited property with multiple owners.
The Legal Process of Selling an Inherited Property with Multiple Owners
When multiple parties inherit a property, the first step is discussing intentions with the other beneficiaries. Do all parties agree to sell the house? Does anyone want to keep or rent it out? Clear communication upfront can prevent headaches later.
If you’re unsure of the legal implications, it’s essential to consult with a real estate attorney who specializes in wills and estate matters. They can help navigate the complexities of selling a home with multiple owners, ensuring all legal requirements are met and everyone’s interests are protected.
Here’s a breakdown of what the legal process may look like:
- Discuss intentions: Start by talking to your co-owners. Are you all on the same page about selling, or does someone want to keep the property?
- Hire a real estate attorney: Involving an attorney ensures the sale follows California’s estate and property laws. The experts at Stone & Sallus are here to help you navigate the complexities of selling inherited property and guide you through each step of the legal process, ensuring a smooth and efficient transaction.
- Title and ownership verification: Our attorneys can confirm who legally owns the property and if it’s under probate.
- Prepare the property for sale: You’ll need to get the property appraised and listed if selling is the agreed-upon course.
Probate and Estate Sale Process
In California, if the inherited property is still in the name of the deceased, it may have to go through probate before it can be sold. Probate is a court-supervised process where the deceased’s estate is settled, debts are paid, and the property is legally transferred to the heirs.
An estate sale may also be necessary to liquidate personal items and prepare the home for sale. The proceeds from the estate sale can then be divided among the beneficiaries.
For a smoother process:
- File a probate petition: Your real estate attorney will handle this.
- Appraise the property: This step determines the home’s value.
- Get court approval: In some cases, the court needs to approve the sale, particularly if not all heirs are on the same page.
Common Solutions for Inherited Property Splits
If selling isn’t the preferred option, there are several other ways to handle inherited property with multiple owners:
Selling the property: The easiest and most common solution, especially when all heirs agree. The proceeds are split based on ownership shares.
Renting the property: If someone wants to keep the home, but others don’t want to sell, renting can be a middle-ground solution. Rental income can be divided among the heirs.
Buyout: One heir buys out the others’ shares of the property. This is common when one sibling wants to keep the house, but others prefer the cash equivalent.
Arrangement agreements: In some cases, co-owners may arrange to use the property together, perhaps as a vacation home, but this requires strong communication and agreed-upon terms.
Partition actions: If heirs cannot agree on a solution, a partition action may be required. This is a legal process where the court orders the sale of the property, and the proceeds are divided.
Common Disputes When Inheriting a House With Others
Inheriting property can lead to disputes, particularly when emotions run high. Common issues include:
- Disagreement over whether to sell or keep the property
- Conflicts regarding the property’s value and listing price
- Emotional attachment versus practical decisions
- Unfair distribution of costs or rental income
If you are inheriting a property with your sibling(s) or other owners, Stone & Sallus can help. Our attorneys understand you may have many questions and uncertainties, and we are here to support you. Contact our team today!
FAQs
If two people co-own a property and one passes away, the type of ownership determines what happens next. In joint tenancy with right of survivorship, the surviving owner automatically inherits the deceased person’s share. In tenancy in common, the deceased owner’s share passes to their heirs, usually requiring probate.
Yes, if all parties cannot agree on what to do with the property, one or more siblings can file a partition action in court. This legal action forces the sale of the home, and the proceeds are then divided among the owners based on their share of ownership. However, partition actions can be costly and time-consuming, so it’s often best to reach a voluntary agreement before going to court.
In many cases, the court will need to be involved, especially if the property must go through probate. Probate is required when the property is still titled in the name of the deceased and needs to be transferred to the heirs. However, if the property was held in a trust or in joint tenancy with the right of survivorship, probate may be avoided. A real estate attorney can guide you through whether court involvement is necessary in your situation.
Yes, you may be able to reside in the inherited home, but this typically depends on the agreement with the other heirs. If you all co-own the property, you’ll need to decide together how to handle living arrangements. It’s crucial to come to a formal agreement regarding responsibilities like property taxes, maintenance, and compensation to the other co-owners for your exclusive use of the home.
To buy out a sibling, start by having the property appraised to determine its fair market value. Once the value is established, you can offer to purchase your sibling’s share based on their ownership percentage. A real estate attorney, such as Stone & Sallus, can help draft a formal agreement and ensure the transaction is handled correctly, including updating the property’s title. Financing options for the buyout may include cash, a new mortgage, or refinancing the existing mortgage.
