Detailed answer — how keeping the house works in Missouri

When a homeowner dies and the house passes to multiple heirs, the heirs typically hold the property together as co-owners (commonly tenants in common) unless the will or deed says otherwise. That means each heir has a legal share of the property.

1. Confirm ownership and how title passed

First, determine how title changed at the owner’s death. If the house passed through probate or by a transfer-on-death deed, the probate records or deed will show which heirs received interests. If you are unsure, get a copy of the deed and the probate paperwork (if there was probate). For general state court probate information, see Missouri Courts: Probate & Estate Administration: https://www.courts.mo.gov/page.jsp?id=197.

2. Options if heirs want to keep the house

Heirs who want to keep the home have several common options:

• Agreement to hold and share expenses: Heirs can sign a written agreement spelling out who lives in the home, who pays mortgage, taxes, utilities, repairs, and how future decisions are made. A written co-ownership agreement reduces misunderstandings.
• Buyout: One or more heirs can buy out the others by paying cash (or refinancing the mortgage to take the property in one owner’s name). Get the property appraised so the buyout price is fair.
• Refinance or new mortgage: An heir who wants full ownership can refinance the existing loan in their own name and use the proceeds to pay the other heirs for their shares. Lenders will require the borrower to qualify on income/credit.
• Form a family LLC or trust: The heirs can transfer the house into an LLC or trust that they own jointly. This can simplify management, clarify responsibilities, and make future sales or transfers easier. Consult a lawyer to create the proper entity and transfer documents.
• Use a gradual buyout (installments): Heirs may agree that one will pay others over time — with the agreement documented and secured (for example, with a promissory note and deed of trust).

3. What happens if heirs disagree — partition actions

If co-owners cannot reach an agreement, Missouri law allows any co-owner to file a lawsuit to partition the property. Missouri’s partition statutes explain how courts handle these disputes. See Missouri partition statutes: Mo. Rev. Stat. Chapter 525 (Partition).

Key points about partition under Missouri law:

• The court first considers whether a partition in kind (physically dividing the property) is practical. If the property can be divided fairly, the court may order it.
• If a fair physical division is not practicable, the court can order a sale and divide the proceeds among the owners according to their ownership shares.
• The court can award costs, fees, and adjustments for improvements or contributions by co-owners.

4. Practical considerations before agreeing to keep the house

Before committing to co-ownership, consider these points:

• Who will live in the house? How are occupancy rights determined?
• Who pays the mortgage, taxes, insurance, and maintenance? What happens if someone fails to pay?
• How are repairs and improvements approved and funded?
• How will future sales or transfers be handled?
• How will income or tax consequences be handled if the property is rented or later sold (capital gains rules)?

5. Hypothetical example

Three siblings inherit a family house as tenants in common. One sibling wants to keep living there and is willing to buy the others. Steps they might take: (1) obtain a professional appraisal; (2) negotiate a buyout price; (3) the buying sibling refinances the mortgage in their own name or borrows funds to pay the others; (4) the selling siblings sign quitclaim deeds transferring their shares. If they cannot agree, any sibling could file a partition action and risk a court-ordered sale.

6. Costs and timing

Negotiated solutions (buyout, agreement, LLC) typically cost less and resolve faster than litigation. Partition lawsuits can take many months, involve court and attorney fees, and often result in a public sale if the property cannot be divided fairly.

7. When to consult an attorney

Talk with a real estate or probate attorney if:

• Heirs disagree about whether to sell or how to use the property.
• There are mortgages, liens, or tax issues attached to the property.
• Heirs want to draft a co-ownership agreement, LLC paperwork, or a buyout contract.
• You face a potential partition lawsuit or need help with probate title transfer.

Missouri courts and statutes provide the legal framework, but an attorney can help tailor a solution, draft binding agreements, and protect each heir’s legal and financial interests.

Important legal reference

Missouri partition law: Mo. Rev. Stat. Chapter 525 (Partition). For probate basics and how title may have passed, see Missouri Courts: Probate & Estate Administration: https://www.courts.mo.gov/page.jsp?id=197.

Disclaimer: I am not a lawyer. This article is for general information only and does not provide legal advice. For advice about your specific situation, consult a licensed Missouri attorney.

Helpful Hints

• Get a copy of the deed and any probate paperwork to confirm who legally owns the house.
• Order a professional appraisal before negotiating a buyout so all parties have a fair market value.
• Put any agreement in writing, and record new deeds promptly after buyouts or transfers.
• Consider refinancing costs and whether lenders will loan on inherited property with multiple owners.
• Document contributions (mortgage payments, repairs) in case the court must later adjust shares in a dispute.
• Talk to a Missouri real estate or probate attorney early if there are liens, unpaid taxes, or conflicting heir wishes.