How to Buy Out Your Siblings’ Interests in a Co-Owned Connecticut Home
FAQ: What steps do I need to take to buy out my siblings’ interests in our co-owned Connecticut property so I can keep the home?
Disclaimer: This is educational information only and not legal advice. Laws change and every situation is different. Talk to a Connecticut attorney and a tax professional before signing documents or making financial decisions.
Short answer
Confirm how title is held, get a current market valuation, agree on a buyout price and payment method, clear or refinance any mortgage, prepare and record a deed transferring the siblings’ interests to you, and update title insurance and tax records. If you cannot reach agreement, a partition action in Connecticut court can force a sale or physical division of the property. See Connecticut partition statutes: Conn. Gen. Stat., Chapter 832 (Partition).
Step-by-step process
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1. Confirm ownership type and each person’s share
Start by obtaining the deed from the town clerk or the Connecticut Land Records system (ctlandrecords.org) or a copy from whoever holds title insurance. The deed tells whether the co-owners hold title as tenants in common (each has a divisible share) or as joint tenants (right of survivorship). If the deed is unclear, a title search or an attorney can clarify the legal ownership and each party’s percentage interest.
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2. Get a reliable market value
Obtain a professional appraisal or at minimum comparative market information from a licensed real estate agent. The market value establishes a fair basis for the buyout price and helps each sibling see the numbers.
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3. Calculate each sibling’s share and propose terms
Multiply the appraised value by each owner’s percentage interest to determine the buyout amount. Decide whether you will pay cash, get a mortgage refinance in your name, or use another financing source. Put the proposal in writing so everyone understands the price, payment schedule, and related costs (closing costs, transfer taxes, prorations).
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4. Address the mortgage and lender requirements
If there is an existing mortgage with your siblings on the loan, the lender likely will not remove co-borrowers without a refinance. To remove siblings from mortgage liability and fully own the property in your name, plan to refinance the loan in your name or pay off the mortgage at closing. Speak with your lender early so you know requirements, timing, and costs.
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5. Use written agreements and a formal deed transfer
A simple agreement should state the purchase price, any seller representations, how closing and payments will happen, and how costs are shared. At closing, the siblings will sign a deed (commonly a quitclaim deed or warranty deed) conveying their interest to you. The deed must be properly signed, notarized, and recorded in the town clerk’s office where the property is located (or via CT Land Records).
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6. Close, record, and update records
At closing, pay agreed funds, obtain a recorded deed showing you as owner, obtain an updated title insurance policy (if desired), and update homeowner’s insurance. Make sure property tax and utility billing responsibilities are settled and prorations handled at closing.
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7. Consider tax and estate consequences
A buyout can have income tax and gift tax consequences and will change the basis in the property. Real estate transfer/conveyance taxes and recording fees may apply. Consult a Connecticut tax professional or accountant and review state conveyance requirements with the Connecticut Department of Revenue Services (portal.ct.gov/DRS).
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8. If you cannot reach agreement: partition action
If negotiations fail, any co-owner may file a partition action in Connecticut Superior Court to force a physical division (rare for a single-family home) or an ordered sale with proceeds divided among the owners. Partition actions are governed by Connecticut law; see Conn. Gen. Stat., Chapter 832. A court-ordered sale can result in higher costs and less control over timing and price than a voluntary buyout.
Key documents you’ll need
- Current deed and title report (from town records/CT Land Records)
- Professional appraisal or broker CMA
- Written buyout/purchase agreement
- Deed to transfer interest (quitclaim or warranty deed), signed and notarized
- Mortgage payoff statement or refinance commitment
- Closing statement showing prorations, transfer taxes, and fees
Hypothetical example (illustrative)
Suppose three siblings own a house in Connecticut as tenants in common, each with a one-third share. A recent appraisal values the home at $300,000. Your one-third share is roughly $100,000. You negotiate to buy each sibling’s one-third for $95,000 (a small discount for a private sale). You secure a refinance in your name for the remaining mortgage balance plus the $190,000 needed to pay your siblings. At closing, your siblings sign quitclaim deeds transferring their interests; the deeds are recorded; you are sole owner and the mortgage is now only in your name.
Helpful hints
- Start with title: know exactly how the deed reads and whether your siblings’ interest is transferable.
- Get a neutral, third-party appraisal to avoid disputes about value.
- Put all offers and agreements in writing. Verbal deals are difficult to enforce.
- Plan financing before making offers—lenders need time to underwrite refinances.
- When siblings are on the mortgage, removing them usually requires a refinance or written lender approval.
- If emotions run high, consider mediation before filing court actions—mediation is faster and cheaper than litigation.
- Record deeds promptly at the local town clerk’s office or via CT Land Records so the public record reflects the transfer.
- Consult a Connecticut real estate attorney to draft documents and protect your interests; they can also explain statutory rights in a partition action (Conn. Gen. Stat., Chapter 832).
- Talk to a tax advisor about capital gains and possible gift tax implications if you pay below market or structure payments over time.
Where to get help in Connecticut
- Connecticut General Assembly statutory texts (partition laws): Chapter 832 (Partition).
- Connecticut Land Records: ctlandrecords.org.
- Connecticut Department of Revenue Services (tax questions): portal.ct.gov/DRS.
- Connecticut Judicial Branch (if a partition court action becomes necessary): jud.ct.gov.
Buying out siblings to keep a Connecticut home is often straightforward when parties agree, but can become complex if mortgages, taxes, or disputes exist. Get reliable valuation, document the deal, and use counsel so the transfer is effective and you do not inherit unexpected liabilities.