Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When two or more heirs inherit real estate in Minnesota, they usually hold the property as tenants in common. Each co-owner has an undivided interest in the entire property regardless of physical occupancy. Under Minnesota law, co-owners have three core rights:
1. Right to Possession
Each co-owner can occupy the entire property unless the co-owners agree otherwise. No one heir can unilaterally exclude another from possession. However, if one heir lives alone in the property and uses it to the exclusion of the other, the excluded co-owner may demand an accounting of rental value and seek damages. Minnesota courts require a co-tenant in exclusive possession to pay the fair rental value for the occupation period. See Minn. Stat. § 558.01 – right to partition (linking to partition statute).
2. Right to Rent or Occupancy Accounting
If one heir occupies the property exclusively, the non-occupying heir can file a lawsuit to recover a share of rental value. While Minnesota does not have a specific statute for co-tenant accounting, courts rely on equitable principles to require the occupant to reimburse the non-occupying co-owner for their share of fair rental value.
3. Right to Partition or Forced Sale
Under Minn. Stat. § 558.01 et seq., any co-owner can initiate a partition action. There are two forms:
- Partition in Kind: The court divides the land physically so each co-owner owns a separate portion.
- Partition by Sale: The court orders the entire property sold and distributes proceeds based on ownership shares.
In deciding whether to partition in kind or by sale, the court considers factors such as marketability, improvements, and the best interests of the parties. Either heir can request a sale if physical division is impractical.
Applying These Rights
In the scenario where one heir wants to live in the inherited home and the other wants to sell, here is how Minnesota law applies:
- If both heirs agree, they can draft a co-ownership agreement specifying occupancy, rent, and timing of sale.
- Absent agreement, the occupying heir must account to the non-occupying heir for one-half the fair rental value.
- The non-occupying heir may file a partition action under Minn. Stat. § 558.01 to compel sale or division. (See: https://www.revisor.mn.gov/statutes/cite/558.01)
- If the court orders a sale, the net proceeds from the sale are divided according to each heir’s fractional interest.
Helpful Hints
- Consider a written co-ownership agreement to avoid disputes.
- Obtain an independent appraisal to set fair rental value.
- Explore mediation before filing a partition action to reduce costs.
- Keep accurate records of rent payments and expenses related to maintenance.
- Consult a real estate attorney for drafting agreements or filing a partition suit.