Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Understanding Co-Owner Rights in New Hampshire Inherited Property Disputes
Detailed Answer
When a property passes to multiple heirs in New Hampshire, it typically becomes co-owned as tenants in common. Each heir holds an undivided interest and may use or occupy the entire property. Unless one co-tenant formally excludes another (an “ouster”), a co-tenant living on the premises does not owe rent to the others. However, each co-tenant remains responsible for their proportional share of expenses such as property taxes, mortgage payments, and necessary repairs.
If one heir wishes to sell while another wants to remain in the home, the selling heir can file a partition action in the Superior Court. Under NH RSA 547:1, the court may order:
- Partition in kind: Physical division of the property among co-owners when feasible.
- Partition by sale: Sale of the entire property and allocation of net proceeds among co-owners when division would cause material injury—see NH RSA 547:2.
The occupying heir has several options to avoid an unwanted sale:
- Buyout: Offer to purchase the other heir’s share at fair market value, often based on a professional appraisal.
- Refinance: Secure new financing to pay off co-owners and remove their interests.
- Negotiated agreement: Agree on a timeline or terms for a future sale that accommodates both parties.
Helpful Hints
- Obtain a professional appraisal to establish accurate fair market value.
- Keep records of taxes, mortgage payments, repairs, and improvements you fund.
- Discuss buy-sell options or a cash-out refinance before filing court proceedings.
- Consider mediation to resolve disputes without litigation.
- Act promptly: partition actions have procedural rules and timelines in New Hampshire Superior Court.
- Consult a qualified New Hampshire attorney for guidance tailored to your situation.