Selling property gets more complex when there are multiple owners. This sometimes happens when parents leave property as an inheritance to their children. Multiple children could all inherit equal ownership shares in a family home or a vacation property, for example.
Navigating this process takes time and planning. With that in mind, here are a few key tips to help things go smoothly.
Make sure everyone is involved
First of all, remember that it probably takes all of the property owners to complete the sale. Everyone should be involved in the process from the beginning. None of the owners can legally sell the property to a third party without violating the other owners’ rights.
Consider the ownership percentages
In the example above, joint tendency is being used, meaning that equal ownership rights were given to all owners. However, with tenancy in common, multiple owners could own different shares. It is simply important to consider the type of tenancy and what this means for the sale – especially when dividing the earnings.
Split up necessary costs
Next, even if one person does most of the work of setting up the sale, the costs may need to be divided between multiple owners. These could include the cost of home upgrades, staging the house, paying attorney fees, covering real estate fees or paying taxes. Additionally, utilities and other bills may need to be paid while the house is on the market or during the sale.
With careful attention to detail, multiple property owners can easily sell that property without conflict. If you’re in this position, be sure you know what legal steps to take.
