Questions often arise about rights and options for selling an inherited home when multiple heirs are involved and not everyone is on board with a sale.
This article delves into the potential for a forced sale when heirs disagree and how that may occur.
Read on to learn more.
Can One Heir Force the Sale of Property?
Generally, statutes governing property rights do not compel a co-owner to hold onto a house involuntarily.
So, the short answer is yes, they can, and just so you know, that’s more likely to happen in certain situations.
For example, if that person has a pressing financial obligation, they may push to liquidate the property so they can get their share in cash.
Also, when debating whether it is more advantageous to sell or rent the inherited home, an heir may be more inclined to sell when maintaining the property is expensive.
Additionally, if an heir feels they are being shortchanged (e.g., financial contributions are unequal, or other heirs live in the house but pay no rent), they may be more motivated to sell.
It should be noted that even though an heir may seek the compulsory sale of an inherited property, several factors can impact how they navigate that action:
- Property laws: These have a major influence. They specify the rights an heir has to compel such a sale, how to go about it, and what circumstances allow the sale to occur.
- Probate property: If the house is in probate, that can delay or restrict an heir’s ability to act. Ownership doesn’t officially change hands until probate is complete.
- Executor authority: An executor has primary authority in managing a decedent’s estate, directly affecting an heir’s ability to unilaterally force a sale.
- Deceased’s instructions: If there’s a will or trust that gives specific instructions or restrictions regarding the sale of the property, that could complicate matters.
- Property ownership: How the property is titled (e.g., tenants in common, joint tenants, community property) defines an heir’s legal options to compel others to sell. Some co-ownership types can add a layer of complexity.
How to Force the Sale of Property?
Given that all beneficiaries don’t have to agree to sell a property to make that happen, any heir wanting to do so can pursue one of several remedies to force a sale.
One legal option is called a partition action. In this lawsuit, the co-owners favoring liquidation seek a court-ordered sale. Even evicting a sibling from your deceased parents’ home is possible in some situations.
While this type of lawsuit isn’t uncommon, it is typically viewed as an avenue to take after others have been tried because it can be costly, time-consuming, and contentious.
Here is what a partition action commonly includes:
- Filing a complaint: The plaintiff (pro-sale co-owner) files a petition with the applicable court. The complaint details the request for the sale and the reasons why.
- Notice and response: All defendants (other co-owners) must be notified of the lawsuit. They get a chance to respond, and negotiations may take place if they are open to that.
- Court evaluation: The court carefully assesses factors such as the nature of the property, the defendants’ interests, and equitable considerations.
- Property valuation: If the court rules for a partition by sale, it will order a professional appraisal to determine the property’s fair market value.
- Sale and proceeds distribution: Then, inherited property can be sold through a private sale, public auction, or conventional real estate transaction. After the sale, the court divides the proceeds based on ownership percentages.
If the property is in probate, pressing for its sale requires including the probate court and the executor (if there is a will) or administrator (no will).
Either an administrator or an executor can sell a house during probate. The court’s involvement has to do with permission.
The method for forcibly selling a probate house involves the following:
- Court approval: An heir asks for the court’s green light. That request should outline the reasons for selling and present evidence of how the sale benefits the estate.
- Notification: The court alerts all those with a stake in the outcome to see if there is any opposition to the sale.
- Hearing and decision: A hearing is typically held where the court reviews the request and hears any objections. If it approves the sale, the court orders the executor or administrator to proceed with selling the property.
Although it’s not a forced sale in the strictest sense, an inheritance buyout can also achieve a similar outcome by facilitating the sale of a jointly inherited property.
In this instance, co-heirs would have to agree to accept a lump sum of cash for their share in the property. This is a plausible solution to explore before an administrator or an executor can evict a beneficiary.
Read our article for what other options to consider when you inherited your parents’ house.
How to Sell an Inherited Property Easily?
Selling a deceased parents’ house doesn’t have to be daunting, even if it presents unique challenges, like when you’ve inherited a hoarder house.
An easy solution is to close a deal with a company focused on properties from an inheritance. These firms are typically made up of real estate investors who buy directly from sellers.
Several benefits make this type of sale an optimal choice, including:
- Cash in hand: Unlike conventional buyers who must qualify for a loan, these firms have funds readily available. There’s no wait for approval or financing contingencies.
- Fast, hassle-free sale: This process usually involves less red tape than traditional transactions, and buyers are often ready to close in as little as a week.
- Sell defects and all: Cash buyers are open to you selling an inherited house as is. You don’t have to commit to fixing any existing or potential problems.
- Save on commission: With no agent in the transaction, you avoid paying commission fees that reduce the amount you get out of the deal.
- Settlement cost savings: There are fewer fees than in a deal that involves mortgage financing, and direct cash buyers usually cover all or some of the other closing costs.
In addition to helping you avoid extensive cleanup or repairs when you’ve inherited a house that needs work, this option is ideal when you want to sell your probate house fast.
These investors are usually experienced in probate proceedings and can help guide you through that process.
So if you are looking to sell your inherited property hassle-free, reach out to get a cash offer from several local companies assessed and accepted by our website.
By comparing multiple offers, you can secure the most advantageous deal.
To learn about other options for selling, read our in-depth article on selling an inherited house.
Or, if you’re looking for other options other than selling, you can check out our guide discussing if it is better to sell or rent an inherited house.