Can multiple heirs keep a Michigan house instead of selling it?

Short answer: Often yes — but it depends on how the property is titled, whether the estate is open, the heirs’ willingness to cooperate, and whether any co-owner forces a sale through a legal partition. This article explains the common options under Michigan law and practical steps heirs can take to keep the house.

Detailed answer — what you need to know

1. Who actually owns the house now?

Start by determining how title is held. Common forms:

Joint tenancy with right of survivorship — surviving co-owner(s) usually own the property automatically when one owner dies. If the decedent owned the home in joint tenancy, the share typically passes to the surviving joint tenant(s) and is not part of the probate estate.
Tenancy in common — each owner holds an individual fractional interest that can pass to heirs or through a will; surviving co-owners do not automatically acquire the decedent’s share.
Ownership through the decedent’s sole name — the home will pass according to the will or by intestacy and may need probate to transfer legal title.

If you are unsure how title is held, get a current title report or deed search from the county register of deeds.

2. If the house is part of the probate estate

If the decedent owned the home alone or as a tenancy in common and left heirs, the home may pass through probate. Michigan’s Estates and Protected Individuals Code (EPIC) governs intestate succession and probates; for example, procedures on distribution and heirs are described in the probate statutes. See Michigan probate law for more detail: MCL 700.2101 (intestate succession provisions).

3. Practical options for heirs who want to keep the house

Agreement to co-own and share expenses — heirs can agree to continue co-ownership, splitting mortgage, taxes, insurance, and upkeep in proportion to ownership shares. Put the agreement in writing and consider a co-ownership agreement that covers use, costs, repairs, rent (if any), and what happens if one owner wants out.
Buyout one or more heirs — one or more heirs can pay the other heir(s) cash for their share. Determine a fair buyout price (appraisal, market analysis) and document the transaction. Estate funds or life insurance proceeds sometimes provide cash for buyouts.
Refinance or obtain a mortgage in the remaining owner’s name — if the heirs want one person to take title, that person can refinance the mortgage solely in their name (if they qualify) and use proceeds to buy out co-owners. This removes other heirs’ mortgage liability and clarifies ownership.
Installment sale to heirs — the estate or co-owner can sell their share on installment terms to one or more heirs, spreading payments over time. Use a clear written contract and secure it with a mortgage or land contract.
Use of homestead or exemptions — in some cases the probate court may allow a surviving spouse or minor children to remain in the home for a period. Check specific probate protections and exemptions that may apply to the family.

4. When a sale may be unavoidable — partition actions

If heirs cannot agree, any co-owner can file a partition action in Michigan circuit court to force division of the property or sale and division of proceeds. Partition is a legal remedy that a disagreeing co-owner can use even if other heirs want to keep the house. Michigan law provides the court authority to divide or sell jointly owned property when co-owners disagree. See Michigan law on civil actions related to property division: MCL 600.2901 (see statutes relating to partition and actions to divide property).

Practical points about partition:

Courts prefer physical division when possible, but for a single-family home that’s rarely feasible; most partition actions end with a court-ordered sale and division of proceeds.
Filing a partition action can be costly and slow. Courts consider equitable factors and liens or mortgages that affect proceeds.
To avoid a court sale, heirs often negotiate buyouts, agree to a common ownership plan, or submit a settlement to the court.

5. Tax, mortgage, and title issues to consider

Refinancing or taking title can trigger closing costs and potential tax consequences. Capital gains basis can change when property passes by inheritance (step-up in basis may apply).
If the property has a mortgage, the lender may have rights (due-on-sale clauses) when title changes. Talk to the lender early.
Liens against the property (tax liens, judgments) attach to the house and affect proceeds. Clear title issues before transfer if possible.

6. Steps to take right now

Get a current copy of the deed from the county register of deeds to confirm title.
Gather mortgage statements, insurance, property tax bills, and the will (if any).
Talk with all heirs to confirm goals: live in, rent, sell, or buy out.
Order a market appraisal or broker price opinion to value the house for buyouts or negotiations.
Consult an attorney experienced in Michigan probate and real estate to review options and draft agreements. If you face a partition threat, act quickly to negotiate or prepare a defense.

Helpful Hints

Put agreements in writing. Oral agreements among heirs often lead to disputes later.
Get a written appraisal for buyouts to set a fair price and avoid accusations of unfair treatment.
Consider mediation before litigation. A neutral mediator can help heirs reach a workable agreement and avoid the expense of a partition action.
If you plan to refinance, check credit score and income requirements early so the qualifying heir can prepare.
Keep clear records of payments for mortgage, taxes, and repairs. These records can determine equitable credits if ownership shares change.
Watch deadlines in probate. If an estate is opened, creditors’ claims and estate administration timelines can affect available cash for buyouts.
Talk to a Michigan probate or real estate attorney for documents such as co-ownership agreements, buyout contracts, deeds, or to evaluate risks of a partition action.

Resources

Michigan Legislature (probate code and civil procedure statutes): https://www.legislature.mi.gov
Michigan Courts information and forms (probate and civil): https://courts.michigan.gov

Disclaimer: This article explains general principles of Michigan law to help you understand options. It is not legal advice and does not create an attorney-client relationship. For advice tailored to your situation, consult a licensed Michigan attorney.