Detailed Answer
If you and your siblings inherit real property in California, you each own an undivided share. Under California law, any co-owner may file a partition action to force a sale or physical division of the property (Code Civ. Proc. § 872.210). To avoid the cost, delay, and uncertainty of litigation, you can negotiate a private agreement instead. Here’s how:
- Obtain an appraisal. Hire a licensed appraiser. A fair market value sets a foundation for any buyout or sale split.
- Discuss goals and options. Meet with your siblings to clarify whether anyone wants to keep the property or prefers cash. Possible outcomes include:
- Buyout. One or more siblings buy out the others at their share’s appraised value.
- Co-ownership agreement. Continue joint ownership under new terms for management, expenses, and sale timeline.
- Sale and split. List the property for sale. After closing, divide proceeds by ownership percentage.
- Trust or LLC. Transfer title into a trust or limited liability company with operating rules.
- Use mediation. A neutral mediator can help you reach consensus and draft a binding agreement. Mediation is confidential and usually faster than court.
- Draft a written agreement. Whatever you decide, put it in writing. Include detailed terms on price, payment schedule, maintenance, taxes, and deadlines. All siblings should sign.
- Record any change in title. If you transfer ownership, record a grant deed or other document with the county recorder to update public records.
Negotiating avoids the statutory process in Code Civ. Proc. §§ 872.010–874.240. If negotiations fail, any co-owner may file for partition in superior court. A judge can order either a sale (partition by sale) or physical division (partition in kind).
Disclaimer: This article provides general information, not legal advice. Consult a qualified attorney before making decisions on property or inheritance matters.
Helpful Hints
- Get multiple appraisals to ensure a fair market value.
- Keep communication respectful and fact-based.
- Incorporate deadlines to avoid open-ended negotiations.
- Consider tax implications of a sale or buyout.
- Maintain records of all agreements, payments, and expenses.
- Consult a real estate attorney if disputes escalate or documents become complex.