Inheriting a property with siblings or other relatives can quickly turn a potential windfall into a stressful legal dilemma. While one co-owner may be ready to sell and cash out, another may want to live in the home or hold onto it as a long-term investment. This disagreement often leads to the critical question: Can you force the sale of inherited property?

The short answer, in most cases, is yes. When co-owners of a property cannot agree on how to manage or dispose of the asset, the law provides a remedy called a partition action.

Understanding Co-Ownership

When multiple people inherit a property, they typically hold the title as tenants in common. This means:

• Each owner holds an undivided interest in the entire property. Even if you own only 25%, your ownership is not limited to a specific bedroom or corner of the yard; it extends to 100% of the property.

• Each co-owner has the right to possess, use, and enjoy the entire property.

• Crucially, each co-owner has the right to sell or transfer their individual interest.

Because one co-owner cannot legally force another to buy out their share, and the property itself cannot simply be divided, the only legal way to dissolve the shared ownership when disputes arise is through a partition action.

What is a Partition Action?

A partition action is a lawsuit filed by one or more co-owners against the others, asking the court to legally divide the property or, more commonly, order its sale. It is the judicial process used when co-owners cannot reach a voluntary agreement.

The courts recognize two primary types of partition:

1. Partition in Kind (Physical Division): The court physically divides the property into separate, distinct parcels based on the proportional interest of each owner. For example, if two siblings own a large, undeveloped piece of land, the court might literally divide it into two parcels. This is rarely possible with residential homes, condos, or small lots, as the physical division would destroy the value of the property.

2. Partition by Sale (Forced Sale): This is the far more common outcome for inherited residential property. The court orders the sale of the property, typically through a public auction or a standard real estate listing, and the proceeds are then divided among the co-owners according to their ownership share.

If you are the party seeking to sell the property, a partition action gives you the legal authority to overcome the objections of co-owners who refuse to sell.

The Process and Costs

Filing a partition action involves the following general steps:

• Filing the Lawsuit: The interested party files a petition with the local court outlining the property details, the co-owners’ interests, and the inability to agree on management or sale.

• Court Order: If the court determines that a physical division is impractical (which it almost always does for a home), it will issue an order for the property to be sold.

• Division of Proceeds: Once the sale is finalized, the proceeds are placed into escrow. Before the money is divided according to ownership percentages, the court will deduct all costs associated with the partition action, including attorney fees, court fees, and, sometimes, reimbursements for one owner who paid for necessary repairs or taxes.

Because the final proceeds are reduced by legal costs, a partition action is considered a last resort. It is almost always in the best interest of all parties to reach a negotiated settlement before filing a lawsuit.

Seeking a Voluntary Resolution for Sale of Inherited Property

Before initiating a forced sale, explore these options:

• Buyout: Offer to buy the non-selling co-owner’s interest at a mutually agreed-upon price, or vice-versa.

• Mediation: Use a neutral third party to help facilitate negotiations between all co-owners and reach a settlement agreement.

• Appraisal: Get a professional appraisal to establish a fair market value for the property, removing subjective arguments over price.

If you are facing a difficult co-owner dispute over the sale of inherited property, seeking legal advice and partnering with an experienced real estate professional is essential. Rocky Rinker specializes in complex real estate transactions and can guide you through the process, whether you pursue a negotiated sale or a partition action. Contact us today to discuss your options.