Detailed Answer — How to keep the home by buying out your co-owners in Arkansas
This guide explains practical steps to move from co-ownership with siblings to sole ownership of a home in Arkansas. It assumes you and your siblings currently hold title together (for example, as tenants in common or joint tenants), and that you want to acquire their ownership interests so you alone will own the property. This is general information only and not legal advice.
1. Confirm who owns the property and how
Begin by getting a copy of the recorded deed from the county recorder or clerk where the property sits. The deed shows the names on title and how they hold title (joint tenants with right of survivorship vs. tenants in common). If the deed is unclear, a title search through a title company or an attorney will reveal ownership, liens, mortgages, and easements.
Useful resource: Arkansas General Assembly (search the Arkansas Code for rules about deeds and ownership): https://www.arkleg.state.ar.us/
2. Determine each sibling’s ownership share and market value
Unless the deed says otherwise, most co-owners own equal shares. Get a professional appraisal or comparative market analysis to determine the home’s fair market value. Multiply the agreed value by each sibling’s share to calculate the buyout amount for each owner.
3. Discuss options and make a written buyout offer
Talk to your siblings about a buyout price and payment terms. Common approaches include:
- One lump-sum payment to each sibling.
- Financing the buyout by refinancing the mortgage in your own name (cash-out refinance) and using proceeds to pay co-owners.
- Assuming the mortgage (if the lender permits) and paying co-owners cash for their equity.
- Seller financing/loan from the selling siblings to you, secured by the property (promissory note plus mortgage or deed of trust).
Put any offer in writing. Include price, who pays closing costs, how liens and taxes will be handled, and a deadline to respond.
4. Arrange financing and get title and payoff information
If you need a mortgage or refinance, get pre-approved and learn how much you can borrow. If an existing mortgage exists, request a payoff statement from the lender showing the current balance and any early-payoff fees. You and your siblings must decide who will pay off or keep any liens.
5. Use a closing process with a title company or attorney
For a clean transfer, close through a title company or closing attorney. They will:
- Prepare or review the purchase agreement or settlement documents.
- Order a title search and issue a title insurance policy (recommended) to protect you as the new owner.
- Prepare and record the deed transferring the siblings’ interests to you (usually a warranty deed or a quitclaim deed depending on the circumstances).
- Handle payoff of existing mortgages, prorations for taxes and utilities, and recording fees.
Recording the deed with the county recorder officially shows you as the sole owner.
6. If siblings refuse — considerations and the partition option
If a voluntary buyout fails because one or more co-owners refuse to sell or agree on price, Arkansas law allows a co-owner to ask the court for a partition.
In a partition action a court can either:
- Order a partition in kind (divide the land into distinct parcels) if division is practical; or
- Order a sale of the property and divide proceeds among owners by share.
Partition litigation can be expensive, take months or longer, and the court-ordered sale price may be lower than a negotiated sale. For information on court processes and forms, see the Arkansas Judiciary site: https://www.arcourts.gov/
7. Key documents you will need
- Current recorded deed
- Most recent mortgage statement and payoff statement
- Property tax bills and tax payment history
- Insurance policy declarations page
- Home appraisal or CMA report
- Photo ID and Social Security numbers for closing
8. Tax, estate, and practical considerations
Buying out siblings can affect taxes, mortgage interest deductions, and future capital gains bases. If the property is part of an estate or subject to a will, executors and probate issues can affect transfers. Talk to a tax advisor and, if the property is in an estate, an attorney handling probate.
9. Typical timeline and costs
Voluntary buyout with clear title: often 30–60 days (depends on financing). Partition litigation: many months to years. Costs to plan for:
- Appraisal: a few hundred dollars
- Title search and insurance: varies by price of home
- Closing costs and recording fees
- Attorney fees for negotiating or litigating
- Possible costs to clear liens or unpaid taxes
10. Practical negotiation tips
- Start with a calm family meeting or mediated session to discuss options and expectations.
- Be transparent about the home’s value and any outstanding debts tied to it.
- Offer flexible terms (installments, partial seller financing) if you cannot pay all cash.
- Consider using a neutral mediator or real estate attorney to draft the buyout agreement.
Important legal references and where to get help
Arkansas laws that govern deeds, recording, and civil actions are available on the Arkansas General Assembly site: https://www.arkleg.state.ar.us/. For court procedures, forms, and self-help information consult the Arkansas Judiciary: https://www.arcourts.gov/.
Disclaimer
This article is for educational purposes only and does not constitute legal advice. Laws change and each situation is unique. Consult a licensed Arkansas attorney to review documents, explain legal risks in your situation, negotiate on your behalf, or represent you in court if needed.
Helpful Hints
- Confirm the deed type (joint tenancy vs. tenancy in common) early — it changes rights and options.
- Get a professional appraisal rather than relying on online estimates for an accurate buyout figure.
- Always use a title company or attorney for closing to ensure liens are paid and the deed records properly.
- If you need time to make payments, consider a written promissory note secured by a mortgage or deed of trust so both sides have legal protection.
- If family tensions are high, suggest mediation before filing a lawsuit — it is faster, cheaper, and preserves relationships more often than litigation.
- Check for homeowner’s association rules or restrictions that may affect transfers or sales.
- Keep detailed written records of all offers, communications, and agreements.