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Disclaimer

This information is educational only and not legal advice. For guidance specific to your situation, consult a licensed Michigan attorney.

Detailed answer

If multiple people (for example, siblings) own a piece of real estate in Michigan, one owner can often buy the others’ interests rather than forcing a sale. The right approach depends on how title is held, whether the parent is still alive or the property passed through probate, and whether the co-owners agree. Below are clear steps and legal options under Michigan law, including what happens if someone won’t cooperate.

1. Confirm who actually owns the property

Start by pulling the deed at the county Register of Deeds or requesting a title report. Common ownership forms:

• Joint tenants with right of survivorship — when one owner dies, their share typically passes automatically to the surviving joint tenant(s).
• Tenants in common — owners each hold a separate share that can be sold, gifted, or inherited.
• Ownership in an estate (during probate) — the personal representative controls estate assets until distributed.

2. If the parent has died, check probate and tax basis

If the property passed through probate, or if title was transferred by a deed at death, the heirs’ ownership shares may already be established. In many cases heirs receive a stepped-up federal tax basis to the property’s fair market value at the decedent’s date of death — that matters for future capital gains tax if the buyer later sells.

3. Try a voluntary buyout first (fastest, cheapest)

Steps for a voluntary buyout:

1. Obtain a current market appraisal or at least a broker price opinion to set a fair price.
2. Document each owner’s fractional share (for example, 1/3 each) and calculate the buyout price for those shares.
3. Negotiate terms: price, payment schedule, whether an owner gets cash or seller financing, who pays closing costs, and responsibility for liens and taxes.
4. Have the agreement put into a written Purchase Agreement and prepare a deed (e.g., quitclaim or warranty deed) transferring the seller’s interest to the buyer at closing.
5. Close through a title company or attorney to clear liens, pay mortgages, record the deed at the county Register of Deeds, and update the title.

A written agreement avoids uncertainty and is usually the least expensive route.

4. If you can’t reach agreement: partition action under Michigan law

If a co-owner refuses to sell their share or refuses a reasonable buyout, a co-owner may file a partition lawsuit. In Michigan, courts handle partition actions and may physically divide land or order a sale and split proceeds among owners. See Michigan’s partition statutes (MCL 600.3301 et seq.) for the statutory framework.

Key points about partition actions:

• The court can order partition in kind (divide the land) if fair division is possible.
• If division in kind is impracticable, the court can order a sale with proceeds divided by ownership share.
• The court may allow one co-owner to buy out others by paying their apportioned value, but courts more commonly end up ordering sale when division isn’t reasonable.
• Partition litigation can be time-consuming and costly and often destroys family relationships.

More about the statute: see MCL 600.3301 et seq.: Michigan Compiled Laws §600.3301 and following.

5. Practical mechanics for closing a buyout

Whether voluntary or ordered, a clean transfer requires:

• A signed deed transferring the seller’s interest (commonly a quitclaim deed or warranty deed depending on title concerns).
• Title search and title insurance if you want protection against unknown liens or defects.
• Payoff of mortgages and liens or agreement about assumption if buyer takes subject to mortgage.
• Recording the deed with the county Register of Deeds to update public records.
• Payment of any transfer or documentary taxes if applicable and updating property tax records.

6. Financing, taxes, and other consequences

Common financing options include cash, a mortgage or HELOC in the buyer’s name, or seller financing (the seller takes a promissory note and deed of trust). Tax matters to consider:

• Federal capital gains taxes depend on the seller’s basis. If the property passed at death, heirs generally receive stepped-up basis.
• Gift tax rules apply if the buyout price is well below fair market value and part of the transaction is effectively a gift.
• Consult a tax advisor about local transfer taxes, capital gains, and gift tax issues.

7. If the parent is still alive and owns the property

If your father still owns the property and you want to buy other siblings’ inherited interests later, the parent’s willingness and capacity matter. Options include the parent selling the property and distributing proceeds, transferring title during life to one child (with possible gift tax and Medicaid implications), or executing a will/trust specifying outcomes. Talk with estate counsel before transfers that could trigger tax or public-benefits consequences.

8. When to hire professionals

Consider a real estate attorney if:

• Co-owners disagree and you anticipate a partition suit.
• Title problems or liens exist.
• The transaction involves seller financing or unusual tax issues.

Also consider a real estate appraiser for valuation, a title company for closing, and a tax professional for tax consequences.

9. Typical timeline and likely costs

Voluntary buyouts: often 30–90 days to appraise, negotiate, and close. Costs include appraisal ($300–$800+), title and closing fees, and attorneys if used.

Partition litigation: many months to years; court and attorney fees can be substantial and may reduce the net recovery from the property.

Helpful Hints

• Start by ordering a current title report and a full appraisal to establish fair market value.
• Put any buyout agreement in writing. Oral agreements cause disputes.
• Use a neutral escrow/title company for closing and to ensure liens are cleared and deeds recorded.
• Consider mediation early — a neutral mediator often preserves family relationships and avoids court costs.
• If someone won’t cooperate, know that a partition action is available under Michigan law (MCL 600.3301 et seq.), but it can be costly and unpredictable.
• Don’t assume a low “family price” is safe—gift or tax consequences may apply; check with a tax advisor.
• If the property is in probate, coordinate with the estate’s personal representative before taking action.
• Hire a Michigan real estate or probate attorney as soon as disputes arise to protect rights and reduce risk.