It can be difficult to sell a house when you share ownership.There are three different types of common ownership, each with their own rules for how a sale can be conducted.There are different consequences when a sale is completed.There is little that another co-owner can do to stop you from selling your share in the property.The entire property can be sold.If you want to conduct a successful sale, you need to be aware of certain pitfalls and procedures.
Step 1: Walk away if you find a buyer.
You don't have to do anything special to sell your share of the house if you and the co-owners are tenants in common.If someone is willing to purchase your share, you can execute the transfer and be done with it.Tenancy in common is the most popular type of concurrent ownership.All of the parties have equal and undivided rights to the property under a tenancy in common.One person does not own the left side of the house while the other does.They share the property equally.The owners can either sell, will, or transfer their share to another party.The rights of other owners are unaffected by the sale of a portion of the property.
Step 2: The consequences to the other owners should be considered.
If a co-owner sells his/her share of the property, the sale destroys the joint tenancy and creates a tenancy in common.If a tenant dies, his/her share of the property is given to the survivors.It can have far-reaching consequences if a joint tenancy is destroyed.Imagine a married couple owning a second home under a joint tenancy.Otis is in debt and worried that his second home will be seized by his creditor, so he sold it to his son for a nominal price.When Otis's finances improve, he buys his share of the house.After they complete the resale, Elmer leaves the family.Otis didn't reconcile with Elmer.Even though Otis thought he had a joint tenancy, it was destroyed when he sold his share to someone else.Because Otis didn't address his share of the house in his will, Elmer can take her to the court to get his inheritance.
Step 3: It's time to end your marriage.
If the two of you own the house as tenants in entirety, you may not be able to sell your share in it.Only married couples use tenancy in entirety, which is less frequently used than common or joint tenancies.The entire property is owned by both parties.They can't sell or transfer the property to someone else without the other's consent.The house becomes the property of the surviving spouse if the marriage ends in divorce or death.
Step 4: A sale price can be determined.
Before anything else, concurrent owners should decide on an asking price.The failure to agree on whether to accept a buyer's offer is the most common reason for joint-property sales to fall through.If you and your co-owners can come to a quick agreement on an asking price, but you find this to be a sticking point, you should get an appraisal.It should be easier to come to an agreement with a buyer if you have an objective starting point.The ideal selling price and the lowest acceptable price are included in the price range.Establish a schedule to lower the price.If the home doesn't sell in a certain amount of time, you can reduce your asking price.
Step 5: The owners have Apportion costs.
Before you put the home on the market, you should talk to the other owners about how costs will be shared.The costs of inspections, escrow, agent's commission, and especially repairs should be taken into account.Before putting a house on the market, it's a good idea to consider repairs that the buyer may request.
Step 6: One of the owners might be assigned power-of-attorney.
Allowing power of attorney to an owner near the property so that they can quickly make decisions about the sale would be a good idea.Be careful about this.You should not sign your rights over to the other owners if you don't trust them to make the right decision.
Step 7: One owner may not have the cash to pay their share of the expenses.
It isn't ideal, but you should plan for it.The scope of repairs may be too large for one owner to afford.It's best to have a plan in place so that you know how one owner would be expected to compensate the others in the event of a shortfall.
Step 8: You can choose an agent.
Everyone in the group feels comfortable working with an experienced and capable real estate agent.Since you will be signing a contract with the agent, make sure you base your decision on factors likely to benefit you.It is not a good idea to pick an agent based on friendship or family ties.An agent with a track record of success is a good choice.You can find more at Select a Realtor.
Step 9: The owners should be at the closing.
The sale won't be valid until all of the owners sign the sale contract.If it isn't possible for all of the owners to be present, the ones who are absent will have to assign power of attorney to another owner.
Step 10: Try mediation.
Sometimes co-owners hit an obstacle in trying to sell their property and want to take legal action against one another.Make sure you have exhausted all other options before you do that.Most of your co-owners are family or friends.The relationship can be ruined by a legal battle to partition the property.
Step 11: Sell your share.
You can avoid taking the other owners to court by making every attempt to negotiate with them.Even if mediation is unsuccessful, you can try to sell your interest in the home to someone else.A third party can also force a partition.There might be some hard feelings towards you even though you wouldn't be involved.
Step 12: Seek legal assistance.
Things may take a turn for the worse at this point.At the earliest possible stage, you should seek the advice of an attorney.If you have decided to pursue a legal remedy, you should speak with an attorney who has experience in real estate law.
Step 13: The court should be petitioned for a partition.
You can partition the property if you can't sell your share to another owner or a third party.A partition is an absolute legal right if you hold a common or joint tenancy.The court will almost certainly grant your request if you can prove ownership.The petition for a partition is a legal document.You can file it at the clerk of court's office in the county where the property is located.A statement of facts explaining why you are entitled to a partition should be included in the document.It doesn't have to be anything more than your claim on the deed and the other owners' refusal to sell the home.
Step 14: There is a notice oflis pendens.
"Lawsuit pending" is a Latin term that means legal action relating to real estate is imminent.While most private citizens don't keep track of lis pendens, banks and creditor do and serve notice of the petition to any who may have an interest in the property.You can file a notice of lis pendens at the land-records office.Use a search engine to find a sample form in most states.
Step 15: They should serve the other owners.
Your next step is to serve the other owners with a copy of your Petition.You need a neutral third party to conduct the service of the process.The best way to conduct the service is to hire a process server.If you want to learn more about serving court papers, read Serve Court Papers.The defendants will have a period of time to respond to your petition.The judge will set a trial date once the Answer is filed.In any civil case, both sides will engage in discovery.When the opposing sides find out what evidence the other side has, it's called discovery.There are many rules in the discovery process.You should retain an attorney now if you haven't already.If the house in question is a rental property, the court can appoint a referee to collect rent and manage the property while it is in dispute.
Step 16: Go to trial.
At trial, you and the other co-owners will meet.If you can prove you have legitimate title to the property, the court will partition it and the house will be sold.Just because the house sells doesn't mean you will get everything you want.If the defendants are able to prove financial liability on your part, your share will be reduced.