What to know about selling a co-owned property in Iowa to pay funeral and property taxes

Disclaimer: I am not a lawyer. This article explains general Iowa legal concepts and common steps people take. This is educational information only and does not constitute legal advice. For help specific to your situation, consult a licensed Iowa attorney.

Short answer — the path depends on ownership, liens, and whether an owner died

If the co-owners agree, the fastest option is an agreed sale and division of sale proceeds after paying liens (mortgages, property taxes). If one owner died and their share passed to heirs, you may need probate administration before selling. If co-owners cannot agree, an interested co-owner can ask an Iowa district court for a partition action to force sale and divide proceeds after liens and costs.

How ownership type affects your options

Start by checking the deed or title to learn how the property is owned:

Joint tenancy with right of survivorship: When one owner dies, ownership typically passes automatically to the surviving joint owner(s). If this is the case, the surviving owner can usually sell the property without probate for the decedent’s share (subject to liens).
Tenancy in common: Each owner has a distinct share. If an owner dies, that owner’s share goes through their estate (probate or small‑estate procedure) and becomes the property of their heirs or devisees. The co‑owners (including heirs) must agree to sell, or one party can seek a court‑ordered partition.
Community or marital ownership: If the property is owned by a married couple or held as part of marital property, family law or probate rules may affect rights to sell.

Common routes to sell a co-owned property in Iowa

1) Agreed sale by all owners (fastest and simplest)

All co-owners (and heirs if an owner’s interest passed by will or intestacy) sign a deed transferring title to the buyer. At closing, liens and closing costs are paid from the sale proceeds, and owners receive their share per agreement or according to their ownership percentages.

2) Probate or small-estate process if the deceased owner’s share must be cleared

If an owner’s share is part of a decedent’s estate, the estate likely must be administered before a clean sale can occur. Probate administration lets creditors (including funeral homes) file claims against the estate. Funeral expenses are usually handled as an estate claim.

Whether you need full probate depends on the value of the estate and how title is held. The Iowa court system provides information and forms for probate administration; contact the clerk of district court in the county where the decedent lived or visit the Iowa Judicial Branch site for public resources: https://www.iowacourts.gov/.

3) Partition action (when co‑owners disagree)

If co-owners cannot agree to sell, an interested owner can file a partition action in Iowa district court asking the court to divide the property (partition in kind) or sell it and divide proceeds (partition by sale). Courts commonly order sale when the property cannot be fairly divided. A court-appointed commissioner or sheriff conducts the sale; proceeds are distributed to pay liens, costs, and then owners in proportion to their interest.

Paying funeral expenses and property taxes from sale proceeds

Funeral expenses: Funeral homes generally have the right to file a claim against the decedent’s estate for payment. When an estate is opened in probate, the administrator pays valid creditor claims from estate assets before distributing the remainder. If the estate owns the real property (or the decedent’s share), sale proceeds become estate assets and can be used to pay funeral bills.
Property taxes: Property taxes are a lien on the property. At closing, unpaid property taxes must be paid from sale proceeds or otherwise resolved. You can get county tax information from the Iowa Department of Revenue and your county assessor/treasurer; general property tax guidance is at: https://tax.iowa.gov/property-taxes.
Outstanding mortgages and other liens: These are paid at closing from the sale proceeds in order of priority. A title company or closing attorney will run a title search to identify liens that must be cleared.

Practical steps to move forward

Examine the deed/title: Confirm how title is held (joint tenancy, tenancy in common, etc.). You can request a copy from the county recorder’s office.
Identify liens and encumbrances: Order a title search or talk with a title company to learn about mortgages, tax liens, or other claims.
Talk to the funeral home and creditors: Determine whether funeral bills have been submitted as claims against an estate. If no estate is open, ask how they expect payment and whether they will accept payment from sale proceeds.
Decide whether to sell by agreement or seek court help: If everyone agrees, list the house and close as usual. If not, discuss partition with an attorney; a partition suit forces an orderly sale but adds time and court costs.
Consider probate: If a deceased co‑owner’s share is involved and there are unpaid funeral bills or other estate creditors, opening probate or using the county’s small‑estate process (if eligible) will properly resolve creditor claims before distributing proceeds.
Use a title company or closing attorney: A title company organizes payoff of liens and ensures clear title at sale; a closing attorney can help allocate sale proceeds to creditors, taxes, liens, and co‑owners.

When to call a lawyer (recommended)

Speak with an Iowa attorney if any of the following apply:

Co‑owners disagree about selling.
An owner has died and the estate has creditors (funeral bills, medical bills) or complex assets.
There are significant unresolved liens, tax delinquencies, or foreclosure threats.
You are unsure whether a small‑estate procedure applies or whether to open formal probate.

To find help locally, see the Iowa Bar Association or Iowa Legal Aid for referrals and resources: https://www.iowabar.org/ and https://www.iowalegalaid.org/.

Helpful hints

Confirm the type of ownership on the recorded deed before acting.
Get a title search early to reveal mortgages, liens, and tax obligations.
If the decedent’s estate will pay the funeral bill, open probate promptly to stop collection efforts and allow creditors to file proper claims.
If you need quick cash to pay urgent bills, consider a short‑term agreement among owners or a secured loan rather than an immediate forced sale—get legal advice first.
Keep careful documentation of all payments from sale proceeds (taxes, funeral costs, creditor payoffs) to prevent later disputes among co‑owners or heirs.
Even when co‑owners agree, consider using a title or closing attorney to ensure liens are paid and the deed transfer is clean.

Where to read Iowa statutes, rules and county resources

For statutory text and official sources, consult the Iowa Legislature and the Iowa Judicial Branch:

Iowa Legislature (full code and statutory search): https://www.legis.iowa.gov/
Iowa Judicial Branch (probate and court procedures): https://www.iowacourts.gov/
Iowa Department of Revenue — property tax information: https://tax.iowa.gov/property-taxes
Local county recorder, assessor, and treasurer offices — for deed copies, tax records, and payment information (search county offices at your county website).

If you would like, I can help summarize the likely next steps for your specific facts (who is on the deed, whether someone has died, current liens, and whether co‑owners agree). That summary can help you talk with a local Iowa attorney or the county probate clerk.