Detailed Answer

This article explains the typical steps to get court approval to sell real property that was inherited by multiple co-owners when one or more co-owners are minors, under New Mexico law. This is general information only and not legal advice. Consult a licensed New Mexico attorney for guidance tailored to your situation.

1. Determine how the property title passed

First confirm how the decedent’s interest in the property passed to the heirs. Common paths are a will (probate), intestacy (no will), joint tenancy with right of survivorship, or a transfer-on-death designation. If title passed automatically outside probate (for example, surviving joint tenant), no probate court approval to sell may be required for that owner’s share. If the property is part of a probate estate (or the heirs hold legal title as co-owners after probate), court involvement is usually required before selling when minors hold an ownership interest.

2. Open probate or establish authority over the minor’s share

If the decedent’s estate must be probated, a personal representative (executor/administrator) is typically appointed by the probate court and has authority to deal with estate property. If a minor directly owns the property share (for example distribution has already occurred), the minor’s property interest is typically managed through a guardian or conservator of the minor’s estate. The court must appoint a guardian/conservator for the minor’s property before the minor’s interest can be sold or encumbered. See general New Mexico probate and guardianship resources: New Mexico Courts — Probate and Guardianship.

3. Consider a small-estate procedure (when applicable)

For lower-value estates, New Mexico provides simplified procedures in some cases that may permit transfer of property without full administration. Whether a simplified or summary procedure applies depends on the estate value and the specific facts. If minors are involved, courts are cautious and may still require a guardian or other protections for the minor’s share. For statute search and details, see the New Mexico legislative site: New Mexico Statutes.

4. File the petition to sell real property

If the estate representative or a guardian seeks court permission to sell real property, file a petition or motion with the probate or district court handling the matter. The petition typically must state:

• the identity of the petitioner (personal representative, guardian, or conservator),
• a short description of the property,
• why sale is necessary or in the best interests of the estate/minor(s) (e.g., pay debts, inability of co-owners to hold and maintain property),
• proposed sale terms or authorization to sell at market terms (sometimes via listing/auction),
• how sale proceeds will be handled (e.g., distributed to adult heirs, deposited into a blocked account for minors, or placed under court supervision), and
• any appraisal or comparable market value information to show the sale is reasonable.

5. Provide notice and obtain any required consents

New Mexico law requires notice to interested persons (heirs, beneficiaries, known creditors, and often minors’ guardians or counsel). The court may require personal service to a minor’s guardian or appointment of a guardian ad litem to protect the minor’s interests. If all owners (including guardians for minors) agree, the court may approve the sale faster, but formal court approval is still often required when a minor’s property interest is being sold.

6. Court hearing and evidence

The court will schedule a hearing. At the hearing the petitioner should be prepared to present evidence the sale is in the best interest of the estate and the minor(s):

• a recent appraisal or broker opinion of value;
• documentation of listing and marketing efforts (if the property is listed);
• proposed purchase agreement or bidding process details;
• a plan for protecting minor proceeds (blocked account, guardianship account, or court-ordered investment); and
• evidence addressing taxes, liens, and necessary repairs or costs of maintenance.

7. Possible court orders and protections for minors

If the court approves the sale, it may issue orders that include:

• authorization of the sale under specified terms;
• approval of the sale price or authorization to sell at a price within a reasonable range;
• requirements that sale proceeds attributable to a minor be placed in a blocked or supervised account, invested in court-approved securities, or managed by a court-appointed guardian until the minor reaches majority; and
• limits on how and when proceeds may be withdrawn for the minor’s benefit.

8. If co-owners disagree: partition actions and forced sale

If co-owners cannot agree to sell, any co-owner may file a partition action in district court to force sale or division of the property. A partition action asks the court to either divide the land physically (rare for a single home) or sell it and divide the proceeds. When minors are parties, the court still protects the minors’ shares and may require guardian involvement or additional steps before finalizing a forced sale. See New Mexico district court resources: New Mexico Courts.

9. Closing, distribution and tax considerations

At closing follow the court’s instructions for distributing proceeds. For minors, distribution often means placing funds into a court-supervised account. Remember to account for estate debts, liens, and taxes. Selling inherited real property can have federal and state tax implications (for example, stepped-up basis for capital gains), so consult a tax advisor. The personal representative or guardian should retain records of the court order authorizing the sale and all closing documents for the court and for tax purposes.

10. Get local legal help

Probate, guardianship, and property law intersect in these cases. A New Mexico probate or guardianship attorney or a lawyer experienced with real property and estate matters can explain which filings are necessary in your county, prepare petition documents, represent you at hearings, and help structure protection for minor proceeds.

For state statute research, consult the New Mexico Legislature website: https://www.nmlegis.gov/, and for court forms and local procedures see the New Mexico Courts probate pages: https://www.nmcourts.gov/self-help/probate/.

Disclaimer: This is general information only and not legal advice. This explanation does not create an attorney-client relationship. For advice about your specific facts, consult a licensed New Mexico attorney.

Helpful Hints

• Gather documents early: death certificate, will, deed, mortgage statements, tax records, and any prior appraisals.
• Get a written appraisal or competitive market analysis before petitioning the court—this helps justify sale price to the judge.
• If a minor will receive proceeds, ask the court whether it prefers a blocked account, guardianship account, or court-approved investments.
• Keep meticulous records of notices, appraisals, listing activity, offers, and communications with co-owners and the court.
• Consider whether selling is necessary—sometimes renting the property temporarily or selling only an adult owner’s share (if possible) is better for the minor’s interest.
• Expect time and cost: probate and guardian proceedings involve filing fees, possible publication or service requirements, and attorney fees.
• If co-owners disagree, know that a partition action can force sale but will involve extra litigation and delay.
• Check tax basics: inherited property usually receives a stepped-up basis, which can reduce capital gains if the property is later sold. Consult a tax professional about federal and New Mexico tax consequences.
• Use a local attorney: New Mexico courts and procedures vary by county and local practice—local counsel will know courtroom expectations and required filings.