Inheriting a house is a good thing, but this can be a headache if you learn that it was left to you jointly with another individual. This individual – your co-owner – can be a relative or an acquaintance. In both cases, you might find yourself a deadlock with what to do with the property because every action you take will require the legal consent of your co-owner, particularly when you decide to sell it. Here are the specifics on how to sell a house with two owners.
When two or more people own a home as joint tenants, there is what is called a “right of survivor ship.” This means that each one of the owners owns the whole property; there is no “half-half”. The idea of joint ownership is to leave the whole house to the other remaining owner when one of them dies. For example, if a wife and husband jointly own their house and one of them dies, the other will have it.
If the co-owners of a house are looking to own “parts” or “halves” of the property, they have to hold that house as “tenants in common.” With this kind of setup, every one of the owners will have a piece of the property that they can sell without having to consult the co-owners. Aside from selling, they can also opt to leave their piece to someone in their will.
So how do you sell a house with two owners? This should be easy if both of you can directly agree to sell the house on your own and split the profit between the both of you. But what if only one wants to sell and the other one does not? How can you sort this out and make sure that neither of the parties are aggrieved? There are mainly two ways to go about it: buy-out and forced sale.
The first thing that you need to do in a buy-out is to agree on an appraiser and get the fair market value of the property. Then, get a mortgage in the amount of your co-owners interest in the house. If there already is an existing mortgage against it, refinance so you can pay it off and pay your partner’s equity. One they finance the mortgage, the interests of your partner in the listing will be transfer to you.
In a forced sale, a lawsuit for “partition”is filed, dividing the listing’s value into segments for each one of the owners. A sale is not usually need to do a forced sale. Thus, if the owners cannot agree on selling the property or retaining it, the court will have to force the sale. Once the sale has completed, both owners will receive their share of the profit.
Selling a listing with two owners can be a challenge, especially if both owners cannot agree with anything. Fortunately, RL Real Estate Group is here to help you. Regan Laughlin and her team will handle the whole selling procedure and make sure that both of the owners will have a fair share of the sale. Call or text the home buying experts at RL Real Estate Group at 605-212-8431 now.