Selling a Co-Owned Property in New Mexico to Cover Funeral and Property Taxes | New Mexico Probate

Detailed Answer — How to sell a co-owned property in New Mexico to cover funeral and property tax expenses

Below is a clear, step-by-step explanation of how the sale of co-owned real estate typically works in New Mexico when you need proceeds to pay funeral bills and property taxes. This explains common situations, the practical steps to take, timelines, and the legal tools used. This is educational information only and not legal advice.

1. Identify the type of ownership and the current legal status of the deceased (if any)

Start by determining how title to the property is held. Common forms of ownership:

Joint tenants with right of survivorship: When one owner dies, title typically passes automatically to the surviving joint tenant(s) and the property does not go through probate.
Tenants in common: Each owner holds an individual share. When an owner dies, that owner’s share passes according to their will or by intestacy through probate.
Owner held by an estate: If the decedent’s share has already been transferred into a probate estate, the personal representative (executor/administrator) controls that share subject to court oversight.

Look at the deed recorded at the county clerk/recorder to confirm how title is held. If someone recently died, you will also want to know whether a personal representative has been appointed in probate.

2. If all co-owners agree to sell: easiest path

If every co-owner (or the surviving joint tenant(s) or the estate’s personal representative for the decedent’s share) agrees to sell, you can list the property with a real estate agent or sell it privately. Key points:

All owners must sign the deed at closing or the personal representative must sign for the estate’s interest with any required court authorization.
Existing liens (including unpaid property taxes) must be cleared from title at closing. The title company or closing attorney will handle payoff of liens from sale proceeds.
The closing statement will allocate sale proceeds among owners according to ownership shares after paying closing costs, mortgages, liens, and taxes.

In most cases, sale to a willing buyer closes within 30–90 days after listing, depending on market and financing.

3. If owners disagree: partition action (court-ordered sale)

If one or more co-owners refuse to cooperate, an owner can file a partition action in New Mexico district court to force division or sale of the property. Partition actions are the primary legal remedy when co-owners cannot agree.

What a partition can do:

The court can order a physical division (partition in kind) if the property can be fairly divided.
If division is not practical or equitable, the court can order a sale and divide proceeds among owners according to their legal shares.

Filing a partition suit typically leads to a court-ordered sale if the judge finds division impractical. Partition actions involve court fees, attorneys’ fees, and take several months (sometimes a year or more) depending on complexity and court backlog.

For basic information about New Mexico court procedures, see the New Mexico Courts self-help resources: https://www.nmcourts.gov/self-help/. For statutory authority and civil procedure related to property actions, see New Mexico statutes: https://www.nmlegis.gov/Legislation/Statutes.

4. If the decedent’s estate needs money for funeral bills and taxes

When someone dies and the estate lacks liquid funds to pay funeral costs or delinquent property taxes, common options include:

Personal representative authority: The executor or administrator can often sell estate assets, including the decedent’s share of real property, if the will or probate court authorizes it. The probate court supervises the sale to ensure proper notice and protection of creditors and heirs.
Emergency or interim orders: In urgent situations, the personal representative can petition the probate court for authority to sell property quickly to pay funeral expenses and taxes. Courts may grant interim relief when necessary.
Creditor claims and priority: Funeral expenses and property tax liens are typically paid from estate assets before distributions to heirs, subject to the order of priority under New Mexico probate rules. Property taxes (and tax liens) often attach to the property and must be addressed by title companies at closing.

If the estate’s interest in the property is small and co-owners want to avoid probate, they sometimes negotiate a buy-out of the estate’s interest.

5. Practical steps you can take right now

Obtain a certified copy of the death certificate if an owner died.
Get the deed from the county clerk/recorder’s office to confirm how title is held.
Contact the local assessor or county tax office to learn the property tax status and amounts due. New Mexico Taxation and Revenue: https://www.tax.newmexico.gov/.
Talk to co-owners about voluntary sale or buyout. Written agreements avoid litigation.
If voluntary agreement is impossible, consult an attorney about filing a partition action or about probate steps if a decedent’s share is involved.
Use a title company or closing attorney to coordinate payoff of liens, taxes, and distribution of proceeds.

6. Typical costs and timeline

Voluntary sale (all owners agree): 1–3 months from listing to close, depending on buyer financing.

Partition or contested probate sale: often several months to over a year. Costs include attorneys’ fees, court costs, appraisal fees, and possible sale expenses ordered by the court.

7. What to expect at closing

The title company will obtain payoffs for mortgages, tax liens, and other encumbrances.
Proceeds are used to pay off debts; remaining amounts are distributed to owners according to ownership shares or court order.
If a probate estate is involved, the personal representative may need a court order or the court may require notice to creditors and heirs prior to distribution.

8. When to talk with an attorney

Speak with a New Mexico real estate or probate attorney if:

Co-owners disagree about selling.
There are liens, unresolved taxes, or title defects.
A decedent’s share is in probate and you need immediate authority to sell to pay funeral bills.
You need help filing a partition action or petitioning the probate court for authorization to sell estate property.

Legal guidance can shorten delays and reduce the chance of costly mistakes.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Laws change and facts matter. Consult a licensed New Mexico attorney about your specific situation.

Helpful Hints

Start by verifying title at the county recorder — it determines who has the legal right to sell.
If everyone agrees, a voluntary sale is faster and far cheaper than court action.
Keep funeral and tax bills documented — these are priority claims against an estate and the documentation helps a personal representative obtain court approval if needed.
Contact the county tax office early to learn deadlines and penalties to avoid lien accrual or tax-sale risks. See New Mexico Taxation & Revenue: https://www.tax.newmexico.gov/.
If you expect a partition action, get an appraisal and keep records of contributions (mortgage payments, taxes, improvements) — courts consider equitable adjustments.
Use a licensed title or escrow agent at closing to ensure liens (including property taxes) are paid and title transfers clear.
Ask about mediation — many disputes among co-owners resolve faster and cheaper through mediation than litigation.