Disclaimer: This article provides general information under Maryland law. It does not constitute legal advice.
Detailed Answer
When heirs inherit real property in Maryland together, each holds an undivided interest. They share equal rights to possess, use, and control the entire property. Disagreements may arise if one heir wants to live on the property while another heir prefers to sell.
Right to Possession and Use
Under Maryland law, each co-owner may occupy the whole property. If one heir lives in the property and excludes the other, the excluded heir may seek compensation. Maryland Code, Courts & Judicial Proceedings §3-402 allows a court, in a partition action, to allocate rents or profits to the nonoccupying co-owner. CJP §3-402.
Partition Action
If heirs cannot agree on occupation or sale, either may file a suit for partition. Maryland Code, Courts & Judicial Proceedings §3-406 authorizes the court to divide the land among co-owners (partition in kind) if practical. If division would be unfair or impractical, the court orders a sale and distributes net proceeds according to each heir’s ownership share. CJP §3-406.
Buyout Option
Heirs often avoid litigation by negotiating a buyout. One heir pays the other fair market value for their share. An appraisal helps set an objective price and prevents future disputes.
Improvements and Expenses
Maryland courts consider each co-owner’s contributions for necessary repairs, improvements, and carrying costs. In a partition suit, the court may adjust distributions to reflect these investments.
Helpful Hints
- Obtain a licensed appraiser’s report to establish fair market value.
- Discuss buyout or sale strategies before initiating court action.
- Keep detailed records of payments for taxes, insurance, repairs, and improvements.
- Consider a written co-ownership agreement addressing occupancy and sale procedures.
- Explore mediation to resolve disputes cost-effectively and quickly.