Can Siblings Force the Sale of Inherited Property?

The emotions that arise when a loved one dies can lead to many potential conflicts, especially among siblings. One of the most common types of disagreements is whether to keep or sell mom and dad’s home after they pass away.

Often, properties are distributed in kind to the kids, leaving them owning property together despite the existence of their potential conflict. While these issues often can be resolved through the probate estate or trust administration process, it can be a source of conflict if siblings have different visions for what they would like to happen to the property. This can be especially difficult if one of the beneficiaries is living in the inherited property.

At that point, under California law, if even one sibling wants to sell the house, they can force the sale of inherited property through a legal proceeding known as a “partition action.”

Legal Considerations in Different Jurisdictions

Whether siblings can force the sale of inherited property depends largely on state law. If you inherited property with your siblings, the state you live in will determine your options for receiving your share of the property or forcing the sale.

California

In California, the sale of heir property, or inherited property, is covered under the Partition of Real Property Act. This act states that all co-owners of a property have the right to sell their own shares of a property or buy out another party’s share.

Still, if the parties cannot come to an agreement around how to distribute the property, and no beneficiary decides to purchase the others’ shares, the court may force the partition of the property either by sale or in kind.

Partition by sale means that the property must be sold and the proceeds will be distributed amongst the beneficiaries. Partition in kind involves dividing the property into distinct and separate parcels and designating one to each beneficiary.

Any of the beneficiaries may pursue the sale of a home through a type of lawsuit called a partition action. A partition action can be started if a co-owner wants to sell the property but other beneficiaries do not, and the property cannot be otherwise divided.

Texas

Meanwhile, in Texas, inherited property is handled in a similar manner. Texas property inheritance laws are covered in the Uniform Partition of Heirs’ Property Act under Title 4, Chapter 23A. Like in California, if beneficiaries cannot come to an agreement on how to divide or use the property, then the court may force the sale of the property.

Therefore, siblings can force the sale of property by refusing to support an agreement for another division of the property. This process can also be avoided if siblings can come to an agreement regarding the appropriate distribution of the property.

Can Siblings Force the Sale of Inherited Property?

Siblings can force the sale of inherited property if they pursue a partition action through the court. However, they can only do so if siblings cannot agree on how to distribute the property and the property cannot be otherwise physically divided.

In states like California and Texas, “majority rule” is not the law of the land when it comes to selling an inherited property. When multiple people own real estate, any owner, including a minority owner, can bring a partition action if they wish to divest themselves of a property.

In the event that one of the beneficiaries of the inherited property does not wish to hold onto the property, they have the option to sell their share of the property in both California and Texas. A beneficiary can choose to sell their share of the inherited property or allow one of the sibling shareholders to buy out their portion. 

Because real estate typically cannot be divided, if one party wants out, they can force the sale of the property to receive their share of the profits. This means that the forced sale of an inherited property can even occur when the majority of siblings want to maintain ownership of the house. 

However, many people in this situation choose to avoid the stress of litigation by buying out the sibling who wants to sell and keeping the house in the family. 

How To Force the Sale of Inherited Property

In Texas and California, a co-owner can force the sale of inherited property through a lawsuit called a “partition action.” This legal proceeding allows the sibling that does not want to keep their share of the home to have the court order it to be sold and the shares of the proceeds divided among all siblings.

Under California Code of Civil Procedure 872.210, a partition action may be brought by any co-owner as long as disagreement exists between owners about whether to sell and the property cannot be divided among the owners. As single-family homes typically cannot be split into equal shares, a forced sale is usually necessary.

This process works similarly in Texas according to Title 4, Chapter 23 of the Property Code. If you inherit a property and prefer not to allow a buyout of the property, then the property will be forced to be sold.

Factors to consider in selling inherited property

When you first inherit a property, you may have an initial reaction to either sell or hold onto the property. However, a house is typically one of the most valuable assets, both in monetary and sentimental value, and inheriting a house also comes with several important responsibilities. Altogether, there are several considerations you should make before deciding to sell inherited property.

Some of the key factors to consider include:

• Financial considerations – Inheriting a home comes with several financial obligations, like a potential mortgage, property taxes, and maintenance costs, but it could also serve as a valuable asset with a high return on investment.
• Emotional attachment – The memories and sentimental value attached to a home could be reason to avoid selling the family home and may cause beneficiaries to consider other options to keep the property in the family, like renting out the home.
• Practicality of property management – In addition to the financial burdens of inheriting and owning a home, co-owners must consider the time and energy necessary for property upkeep and maintenance before deciding whether to keep or sell their share.

How do I prevent the sale of inherited property?

Once a partition action has been filed, you may have a hard time stopping the sale. This is because California and Texas recognize an absolute right to partition jointly-owned real estate, and the court will not force someone to keep owning a property they do not want to keep. 

However, the most favorable outcome when opposing a partition lawsuit is usually to reach a settlement agreement that allows the siblings who want to keep the home to buy out the sibling that wants to sell. This means that the fact that a partition action has been filed does not make the forced sale of the inherited property inevitable, as long as the siblings can reach an agreement. 

Estate Planning Strategies To Avoid Property Disputes

If a settlor establishes how they would like to see the property partitioned in their estate planning documents, it may prevent conflict from happening altogether. For example, a settlor may simplify the process by leaving the property to one specific beneficiary or require that it be sold upon their passing.

Some strategies for avoiding disputes surrounding heir property include:

• Estate planning documents for inherited property – A settlor or testator should establish clear and comprehensive estate planning documents to prevent future disputes by outlining specific instructions
• Utilization of a trust – Establishing a trust can be a flexible estate planning tool for designating beneficiaries, specifying property distribution rules, and minimizing the likelihood of disputes between heirs.
• Regular review and updates of estate plans – Family dynamics are ever-changing, so a settlor or testator should review their estate planning documents regularly and make any necessary adjustments to avoid conflict when it’s time to administer the estate.

Settlement Negotiations

A settlement negotiation is one of the most common ways to resolve property disputes and prevent the forced sale of the inherited property. A probate litigation attorney can help siblings who inherit an estate property negotiate the sale of one co-owner’s share to another co-owner and avoid litigation altogether. 

The following are some of the most common settlement negotiation scenarios:

• Siblings who want to retain ownership buy out those who want to sell. For example, say five siblings jointly inherit a home, and one wants to sell. One option would be for the four siblings who want to keep the home to buy out the one who wants to sell.
• If one sibling wants to retain the property but does not have the means to buy out shares from their other four siblings immediately, the other siblings may agree to a payment plan for the sibling to buy out the shares over time.
• If a property can be divided into parcels, a settlement negotiation can designate who will receive ownership of which parts of the property.

In the above scenarios, the five siblings would need to agree on the value of the house or, alternatively, have the property formally appraised. Of course, if someone doesn’t agree with the valuation, that too can lead to litigation. 

If a settlement resolution cannot be secured and litigation ensues, the beneficiaries can still work to achieve a settlement—this can happen through continued informal negotiations, a mandatory settlement conference, or a mediation session, all while the action is pending. 

If the parties still can’t agree, the partition action will move forward, and the home will be sold, either to the public, which can include any sibling who wants to buy the property through that process, if they are the highest bidder.

Take Action To Safeguard Your Inherited Property Rights

Siblings can force the sale of inherited property by seeking a partition action through the court if they refuse to come to an agreement surrounding the distribution of the property. If you are involved in a disagreement with your siblings over whether to sell an inherited property, you should consult with a probate litigation attorney as soon as possible. Whether you want to keep the house or sell it, an experienced partition action lawyer can help protect your interests by prosecuting or defending a partition action that protects what your parents intended.

Our team at RMO Lawyers can use our experience to help you navigate your inheritance property dispute. We take a compassionate approach to understanding your case and your unique family dynamics so we can create a strategy to secure your rightful inheritance.

Schedule a consultation with our team at RMO to start the path toward securing your rightful inheritance.