How do you sell land with co-owners or heirs?

Can I sell land I inherited?

Yes, once you have the legal power to sign the deed. That comes from one of three places: a deed or court record that puts the land in your name, letters from the probate court naming you personal representative (executor or administrator), or a recorded affidavit that shows the land passed to you by survivorship.

Until then, the county records still show the person who died as the owner, and a title company will not insure a sale. Start by getting the most recent recorded deed from the county recorder or clerk. It tells you how title was held, which decides your next step.

Taxes are usually lighter than people expect. The IRS says the basis of inherited property is generally its fair market value on the date of the owner's death, and you have a taxable gain only if you sell for more than that basis. See how inherited property is taxed when sold before you set a price. General information, not legal or tax advice.

Can I sell inherited land before probate is finished?

Often yes, but the estate's personal representative signs, not the heirs, and some states require the court to approve the sale. Florida is an example. When a will does not give the personal representative a power of sale, Florida law lets the representative sell real property, but no title passes until the court authorizes or confirms the sale.

If the will grants a power of sale, the representative can often sell without a separate court order. Heirs can usually sign a purchase contract early and set closing for after the representative is appointed or the court approves. Ask the probate court clerk or an estate attorney which steps apply in your county.

How do I sell land when a co-owner on the deed has died?

Read the deed wording. Words like "joint tenants with right of survivorship" mean the surviving owners now own the deceased owner's share. In California, for example, the survivor records an affidavit of death of joint tenant with a certified copy of the death certificate at the county recorder. Other states use similar affidavits. After that, the surviving owners can sign the deed.

If the deed does not mention survivorship, the owners are often tenants in common. In Florida, a deed to two or more people creates a tenancy in common unless it expressly provides for survivorship, except for married couples holding as tenants by the entirety. The deceased owner's share then goes through their estate, and the surviving owners and the estate or heirs all sign the sale deed.

What is heirs property, and can it be sold?

The USDA describes heirs property as family land jointly owned by descendants of a deceased person whose estate did not clear probate. The heirs can use the land, but they do not have clear, marketable title. Over a few generations, one tract can end up with dozens of owners, some of whom do not know they own it.

It can be sold. The usual paths are a probate case or heirship affidavit that clears title, followed by a deed signed by every heir. When some heirs cannot be found or will not sign, a partition action asks the court to divide or sell the land. Some buyers will also buy one heir's undivided share, but that buyer then becomes a co-owner with the rest of the family.

Can a co-owner or spouse block the sale?

A co-owner can block a sale of the whole tract by refusing to sign, but not forever. Any co-owner can usually ask a court for partition, and the court can divide the land or order it sold. A co-owner also cannot stop you from selling your own undivided share.

A spouse who is not on the deed can matter too. In Florida, the owner of homestead real estate, joined by the spouse if married, may sell the homestead. Vacant land is often not a homestead, but it can be in some cases. Some states also give spouses marital rights in land. A title company will tell you whether your spouse must sign. Rules vary by state, so ask a real estate attorney if a spouse refuses.

How do I sell land when the owners disagree?

Try the low-cost options first. Partition cases take time and legal fees, and those come out of everyone's share. The common options are:

• Buyout: one or more owners buy out the others at an agreed price, often based on an appraisal.
• Agreed sale: all owners sign one listing agreement or one cash sale and split the money by share at closing.
• Sell your own share: you sell your undivided interest, and the buyer steps into your place as co-owner.
• Mediation: a neutral person helps the family agree on price, timing or a buyout.
• Partition action: a court divides the land (partition in kind) or orders a sale and splits the money (partition by sale).

How the Uniform Partition of Heirs Property Act protects families

The Uniform Law Commission approved this act in 2010 to change how courts handle partition of family land. It applies to land held as tenants in common when no written agreement binding all owners governs partition, at least one owner got title from a relative, and relatives hold at least 20 percent of the interests or make up at least 20 percent of the owners. Where a state has adopted it, the court follows these steps:

• Value: the court usually orders an appraisal by a disinterested licensed appraiser, unless all owners agree on a value.
• Buyout: owners who did not ask for a sale have 45 days after notice to elect to buy out those who did, at their share of the appraised value. Payment is due on a date at least 60 days after notice.
• Divide if possible: if the buyout does not resolve it, the court orders partition in kind unless dividing the land would cause great or manifest prejudice to the owners as a group.
• Open-market sale: if the land must be sold, it is usually listed by a licensed real estate broker at a price no lower than the appraised value, not sold at a courthouse auction.

Which states have adopted it?

Among the states we cover in detail, Texas, Florida, Georgia, Alabama, Mississippi, South Carolina and Tennessee have adopted a version of the act. We did not find it in North Carolina, Oklahoma or Louisiana partition law. See each state's inherited land page for the statute and the court that hears partition cases, and read who pays for a partition action before you file one.