Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney to address your specific situation.
Detailed Answer
When someone dies owning real estate in Hawaii and leaves the property to multiple heirs, those heirs typically become co-owners as tenants in common. Each co-owner holds an undivided interest and has equal rights to possess the entire property. If one heir wants to live in the inherited property while another wants to sell, co-owners have these key rights and options under Hawaii law:
1. Right to Possession
Under common-law tenancy in common, each heir may occupy the property. Neither co-owner can exclude another co-owner from possession without risking a claim for wrongful exclusion.
2. Duty to Account for Rent and Expenses
If one co-owner exclusively occupies the property and excludes the others, the non-occupying heirs can demand reimbursement for their share of rental value or property expenses. In a partition action, the court may order equitable contribution or grant credit for payments made by the occupying co-owner.
3. Partition Action
When co-owners cannot agree on use or sale, any co-owner may file for partition under HRS § 669-1. The court can:
- Physically divide the land if feasible.
- Order a sale at public auction or private sale and distribute net proceeds according to each heir’s ownership percentage.
4. Buyout Options
The heir wishing to live in the property may offer to buy out the other co-owners at fair market value. Obtain a professional appraisal to establish value. A written buyout agreement, signed by all parties and recorded with the Bureau of Conveyances, can prevent future disputes.
5. Probate Court Considerations
If the estate is still open in probate, the personal representative must comply with distribution procedures. Under HRS § 560:3-301, the court may need to approve any transfer or sale of estate real property before distribution to heirs.
Helpful Hints
- Obtain a professional appraisal to determine fair market value.
- Document any occupancy or buyout agreement in writing and record it.
- Maintain clear records of all expenses, mortgage payments, taxes, and utilities.
- Consider mediation to resolve disputes without court intervention.
- Consult a probate or real estate attorney familiar with Hawaii law for guidance.