Detailed Answer
If you and your siblings inherited property in Minnesota, each of you owns an undivided share. Under Minn. Stat. §558.01, any co-owner can file a partition action to force a sale or division of the property. A private agreement, however, can help you avoid court intervention, save time, and cut legal fees.
1. Confirm Ownership and Shares. Review the deed or probate documents to verify each sibling’s percentage interest. Clarify whether the property is held as tenants in common, which is the default for inherited property.
2. Explore Buyout and Sale Options. You can arrange for one sibling to buy out the others at fair market value. Alternatively, agree to sell the entire property to a third party and split the proceeds.
3. Draft a Written Settlement Agreement. Clearly outline the terms: purchase price, payment schedule, closing date, prorated taxes, and responsibilities for upkeep. A written contract signed by all co-owners and notarized reduces misunderstandings and is enforceable.
4. Consider Mediation or Arbitration. Including a dispute-resolution clause lets you resolve conflicts outside court. An impartial mediator or arbitrator can facilitate negotiations and keep the discussion focused.
5. Record the Agreement. After signing, record the settlement agreement with the county recorder to update title records. This step protects the new ownership structure against third-party claims.
If you cannot reach an agreement, any co-owner may file a partition action under Minn. Stat. §558.01 et seq. The court may order the property sold or physically divided, which can take months or years and incur significant costs.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice.
Helpful Hints
- Start discussions early to reduce tensions and set realistic expectations.
- Obtain a professional real estate appraisal to set a fair buyout or sale price.
- Use a neutral mediator to keep negotiations productive.
- Keep detailed written records of all offers, counteroffers, and communications.
- Verify there are no outstanding liens or mortgages before closing the agreement.