Complicated Family Matters
Parents often leave their real estate equally to their children. This can often result in a home being left to multiple children all sharing in the property. Some siblings may not be prepared to sell while other siblings may want to know how to sell a house with a sibling who does not wish to sell. This may create some problems but there may be options available:
For siblings who have inherited a home, there is often a desire to sell their portion of the home to help relieve some of their own financial burdens. For those who have siblings who are unwilling to sell the home immediately, they can ask that the sibling purchase their share of the home. This is fairly simple to do if the sibling has good credit and/or the home has no current mortgage. This is the easiest way to accomplish a transfer of the title. The steps are not particularly complicated:
Have an open discussion - speak with your sibling (or siblings) and ask them to consider buying out your share of the home;
Have an appraisal - contact a reputable appraiser. Get the true market value of the property and determine how much each sibling owns. This will also help settle disputes regarding how much each person is entitled to;
Agree on the price of buyout - review the current property value and decide how much you are willing to accept from a buy-out;
Agreement reached - once an agreement has been reached, make sure that you get it in writing (so it is binding);
Obtain financing - the sibling who is keeping the home should then obtain financing for the buy-out. This may be easier than you think as there may be plenty of equity where an equity line of credit can be obtained;
After the buyout - once the buyout is accomplished, there should be a quit-claim deed filed to remove the sibling who has been bought out from the deed. The process is the same as it would be to remove a deceased person from the deed.
Important Information to Know When You Received House With Father’s Death
When you inherit a home with your sibling (or siblings), you may be thinking, what now? I received a house with my father’s death; how do I sell my share? Before you decide to cash out an inherited home, it is important that you contact a tax professional. There may be tax implications with this type of transaction.
It is important to remember that emotions run high after losing a parent, and not all siblings are ready to see the family home be sold. Sometimes a buyout of a sibling is easier on the family than attempting a sale. However, in the event that a buyout or another amicable solution cannot be accomplished, your last resort may be to contact a family attorney. The process of how to sell a house with a sibling does not have to be complicated if an agreement can be reached. Otherwise, it could get very messy and could be a long and drawn out process.
There may also be tax ramifications for the estate as well as you and your sibling (or siblings) if you do a buyout. Typically, it is wise to discuss these matters with a tax professional and if needed, a legal professional.
- Percent of Home Author Salvatore Vuono via freedigitalphotos.net
- Avvo: If two siblings inherit a house from their deceased brother - must they pay taxes on market value even if they live in house? http://www.avvo.com/legal-answers/if-two-siblings-inherit-a-house-from-their-decease-137025.html