How to Buy Out Siblings’ Interests in a Parent’s Property — New York (FAQ)

Disclaimer: I am not a lawyer and this is not legal advice. This article explains general New York law concepts and practical steps to help you decide whether to speak with a New York-licensed attorney for specific legal help.

Detailed answer: Can you buy out your siblings instead of selling the property?

Yes, in New York you can often buy out your siblings’ interests instead of forcing a sale, but the exact steps depend on how title is held, whether the parent is alive or deceased, and whether your siblings agree. Below are the key legal concepts and practical steps you should follow.

Step 1 — Confirm who actually owns the property

Start by checking the deed and any estate documents. Ownership types matter:

• Joint tenancy with right of survivorship: When one joint tenant dies, ownership automatically passes to the surviving joint tenants. If the property was held this way, there may be no sibling interest to buy out after a death.
• Tenancy in common: Each person owns an undivided share that can be sold, transferred, or bequeathed. This is the most common situation when a buyout is needed.
• Property in the decedent’s estate or a trust: If the property is still in a deceased parent’s estate or in a trust, distribution rules under the will, the trust, or intestacy law control who has the legal interest and when a buyout is possible.

If the owner is deceased, you may need to review the probate files or trust documents to learn who currently holds title. New York intestacy rules are in the Estates, Powers & Trusts Law; see, for example, the general intestacy provisions at EPTL §4-1.1: https://www.nysenate.gov/legislation/laws/EPT/4-1.1.

Step 2 — If siblings agree: negotiate a voluntary buyout

If everyone is willing to sell their interest to you, a voluntary buyout is the simplest route. Typical steps:

1. Get a professional appraisal or comparable-sales analysis so you can make a fair offer.
2. Check for mortgages, liens, unpaid taxes, or other encumbrances. You must address these in the buyout (pay off, assume, or refinance).
3. Present a written offer. Options include a lump-sum purchase, an installment sale (seller-financed note), or assumption of the mortgage subject to lender approval.
4. Document the agreement with a purchase agreement and plan for closing (use a title company or attorney). The closing transfers title by deed (often a quitclaim or bargain and sale deed), and the deed is recorded in the county clerk/registrar’s office.
5. Consider and plan for taxes (transfer taxes, potential capital gains, gift tax questions) and title insurance. Consult a tax advisor for tax consequences of the buyout.

Voluntary buyouts are faster and cheaper than litigation. Have any transfer documents reviewed by an attorney or title professional before closing.

Step 3 — If siblings refuse: partition actions and court-ordered sale

If a co-owner refuses to sell or to accept a buyout, any co-owner can file a partition action under New York law. Partition actions are handled under the Real Property Actions and Proceedings Law (RPAPL), and courts prefer a partition in kind (dividing the land physically) but will order a sale if division is impracticable.

Key points about partition:

• Partition actions are governed by RPAPL; see the statute series beginning at RPAPL §901: https://www.nysenate.gov/legislation/laws/RPAPL/901.
• The court can order a physical division of the land (partition in kind) if feasible. If not feasible, the court will order the property sold and divide proceeds among the owners based on their shares.
• The court may appoint a referee to conduct a sale and decide how to allocate proceeds and costs. Litigation costs and fees reduce the net proceeds.
• A partition action can be slow and expensive. A co-owner worried about an imminent partition should know a sale could be ordered over the objection of others.

Before a court is asked to sell, you can propose that the court allow you to buy other owners out at an appraised fair market value — courts sometimes permit negotiated buyouts and will account for them in resolving a partition case, but you should obtain legal help to present such a proposal effectively.

Step 4 — If the property is in probate or trust administration

If title remains in a deceased parent’s estate, the executor (or administrator) or trustee controls the asset until it is distributed. To arrange a buyout you will need cooperation from the personal representative or trustee, and any buyout terms must respect the decedent’s will or trust and creditors’ claims. Talk with the estate representative and the estate attorney about buyout timing and the authority to transfer.

Step 5 — Documentation, closing, and recording

A proper buyout closes like a normal real estate sale: signed deed, payoff or assumption of encumbrances, updated title insurance, recording the deed, and distributing funds. Use a title company or attorney to prepare and record documents and to conduct a title search that clears problems before transfer.

Practical considerations and common issues

• Valuation disputes are common. An independent appraisal is often decisive.
• If you need financing, lenders may require you to refinance the whole mortgage into your name or to underwrite the purchase of the other interests.
• Siblings can structure buyouts as installment sales with promissory notes and security interests in the property; this may be attractive to sellers but requires careful documentation and risk evaluation.
• Be aware of state and local transfer taxes and possible capital gains consequences when ownership changes.
• Mediation can help resolve buyout disagreements without litigation.

Helpful Hints

• Obtain a certified copy of the deed and chain of title from the county clerk to confirm ownership and any liens.
• Order a current market appraisal before making an offer.
• Get a title search early so you know about mortgages, liens, easements, or judgments that could affect value or transferability.
• Put offers in writing and propose realistic terms (cash, note, assumption). Be prepared to show proof of funds or preapproval.
• Consider using mediation or a neutral real estate attorney to negotiate if emotions are high.
• Budget for closing costs, possible transfer taxes, and professional fees (attorney, title insurance, appraisal).
• If a relative threatens a partition action, get an attorney promptly; partition litigation can be costly and unpredictable.
• When dealing with probate or trusts, work with the executor/trustee and their counsel to confirm authority to transfer.
• Keep careful records of all offers, communications, appraisals, and signed documents.

When to talk to an attorney

Consult a New York-licensed real estate or estate attorney if:

• Title is unclear or the property is part of an estate or trust;
• Siblings refuse to cooperate or you face a threatened partition action;
• There are complicated liens, mortgages, tax issues, or related litigation;
• You want a documented installment sale or creative financing arrangements.

An attorney can prepare documents, advise you on tax and probate interactions, represent you in court if necessary, and help structure a legally enforceable buyout.

Statutes and resources: Relevant New York statutes include the Real Property Actions and Proceedings Law (RPAPL) on partition actions (see RPAPL §901 and following): https://www.nysenate.gov/legislation/laws/RPAPL/901. For intestacy and estate distribution rules, see the Estates, Powers & Trusts Law (e.g., EPTL §4-1.1): https://www.nysenate.gov/legislation/laws/EPT/4-1.1.

Final note: Buying out co-owners is commonly done and often preferable to a court-ordered sale, but success depends on clear title research, fair valuation, good documentation, and — where needed — legal advice. If you want help finding a New York attorney to review documents or negotiate a buyout, consider contacting your county bar referral service.