Practical steps to buy out co-owners’ interests in Tennessee residential property

Short answer: You can usually buy your siblings’ undivided interests by confirming how title is held, getting a market value, making a written buyout offer, and completing a deed transfer (or a purchase agreement with financing and a deed once paid). If siblings refuse, a co-owner may file a partition action in court, which can force a sale. The process changes a bit if the property is still in probate or if there are mortgages or liens.

Detailed answer — what to do and why (Tennessee law)

This section explains, in plain language, the typical legal and practical steps to buy out other owners’ interests in property under Tennessee law. This assumes the property is in Tennessee and is owned as undivided interests (for example, heirs holding title as tenants in common). If the property is still part of a decedent’s estate, the personal representative or administrator may have to approve or carry out a transfer under the probate process.

1. Confirm who actually owns the property and how

Start at the county register of deeds to pull the deed history and any recorded wills, deeds, liens, or mortgages. Ownership can be:

• Joint tenancy with right of survivorship — surviving co-owners usually take the whole automatically.
• Tenancy in common — each owner has an undivided fractional interest and may sell or be bought out.
• Title still in the decedent’s name and subject to probate — distribution will depend on the will or Tennessee intestacy rules and probate court orders.

If the property is in probate, the personal representative (executor/administrator) may need court approval or must follow the estate’s settlement terms before conveying property.

2. Determine each owner’s share and the property’s fair market value

Obtain a professional appraisal or a broker price opinion to set a defensible market value. Each owner’s share is usually proportional to their fractional interest (for example, 1/3 each if three heirs hold equal shares). You’ll use these figures to calculate the buyout price.

3. Make a written buyout proposal

Send a clear written offer to buy each sibling’s interest. Include:

• Amount offered (method of valuation noted).
• Payment terms (cash at closing, seller-financed promissory note, or other financing).
• Timeframe for closing and any contingencies (inspections, title clearance, probate approval).
• A proposed deed type (quitclaim deed is common for family transfers; a warranty deed transfers fuller covenants).

4. Negotiate and document the agreement

If your sibling accepts, document the transaction with a purchase agreement or buy-sell agreement. Important documents often include:

• Purchase agreement describing the property, parties, price and terms.
• Deed to transfer the seller’s interest (quitclaim deed for simple transfers; warranty deed where warranties are desired).
• Affidavits required by the county for closing or recording (e.g., affidavit of heirship, if applicable).
• Release or waiver of claims from seller siblings to prevent later disputes.

5. Closing and recording

At closing, deliver funds, sign the deed and any required affidavits, and have documents notarized. Record the deed in the county register of deeds where the property is located. If a mortgage remains, address it by paying it off, refinancing, or obtaining the lender’s consent (lenders often have “due-on-sale” clauses).

6. If the seller agrees to seller financing

You can use a promissory note secured by a deed of trust or mortgage in Tennessee. Have a written note, security instrument, payment schedule, and default remedies spelled out, and record the security deed to protect the lender’s (seller’s) interest.

7. What if a sibling refuses to sell?

When co-owners cannot agree, Tennessee law allows a partition action. The court may order a partition in kind (physical division) or, if that’s not feasible, a sale with proceeds divided among owners. See Tennessee’s partition statutes at Tenn. Code Ann. Title 29, Chapter 28 (Partition). A partition action can be costly and unpredictable, so showing a good-faith offer and willingness to mediate often helps avoid court.

8. Probate-specific considerations

If the property is part of your father’s estate and has not yet been distributed, the transfer may need to happen through the probate process. The personal representative may sell estate property under probate rules or you may need the court’s permission to distribute property to heirs who then sell to you. Check general probate practice under Tennessee rules: Tenn. Code Ann. Title 30 (Probate & Administration).

9. Taxes and other practicalities

• Property taxes: confirm current taxes and prorations at closing.
• Capital gains: selling siblings may have tax consequences; encourage them to consult a tax advisor.
• Title insurance: consider getting title insurance on the new full interest.
• Mortgage qualification: if you must refinance to buy them out, lenders will want income/credit documentation.

When to consider court or mediation

Consider mediation or a neutral attorney to negotiate if emotions run high. File a partition action only after attempts at settlement fail. Courts can order sale and divide proceeds per ownership shares under the partition statutes referenced above: Tenn. Code Ann. Title 29, Chapter 28.

When to hire an attorney

Talk to a Tennessee real estate or probate attorney if:

• Title is unclear or in the decedent’s name and probate is involved.
• There are mortgages, liens, tax issues, or conflicting claims.
• Siblings refuse to cooperate and you need advice about partition litigation.
• You want to draft secure seller-financing documents.

Helpful Hints

• Get a current title report early to learn all claims and liens.
• Obtain a professional appraisal to support your buyout price and avoid disputes.
• Put offers in writing and keep negotiation records (emails, letters).
• Consider mediation before litigation — it’s faster, cheaper, and preserves family relationships.
• If using a quitclaim deed, know it offers no title warranty; consider a warranty deed if you want stronger protection from sellers.
• Check the mortgage for a due-on-sale clause before transferring interests; contact the lender early.
• Use recorded releases and satisfaction documents so sellers cannot later claim interest.
• Retain an attorney for closing documents and to prepare a secure promissory note and security deed if seller financing is used.

Key Tennessee statute for forced resolution: Partition actions are governed by Tennessee law. See Tenn. Code Ann. Title 29, Chapter 28 (Partition): https://www.capitol.tn.gov/legislation/code/title-29/chapter-28.html.

Reminder and disclaimer: I am not a lawyer. This information explains general Tennessee legal principles and practical steps to help you understand options and prepare to talk with an attorney. This is not legal advice. For help specific to your situation, consult a licensed Tennessee attorney who can review titles, probate status, tax consequences, and draft legally binding documents tailored to your case.