Short answer
If you want to keep family real estate instead of forcing a sale, you can usually buy your siblings’ interests. The common path is to confirm how title is held, get a fair market value, agree on a buyout price and payment terms, and record a deed transfer. If agreement fails, a co-owner can ask a court for a partition, which can result in a sale. Working with a North Dakota real estate or probate attorney and using a written buyout agreement or deed transfer protects everyone.
Detailed answer — step-by-step under North Dakota law
1. Verify who actually owns the property
Start by examining the deed and any estate documents. Common ownership forms include joint tenancy with right of survivorship and tenancy in common. If title is joint tenancy and the parent is deceased, survivorship may have already passed full ownership to the surviving joint tenant(s). If ownership is tenancy in common, each co-owner holds an undivided fractional interest you can buy.
2. Check whether the property is still in probate or part of an estate
If the father’s estate is open in probate, the personal representative (executor/administrator) controls transfers until the estate is closed. You may need the personal representative’s consent, or a court-approved family settlement, to transfer interests. For general North Dakota Century Code information, see the North Dakota Legislature’s Century Code resources: North Dakota Century Code. For practical court information, see the North Dakota Courts website: ndcourts.gov.
3. Get a current market valuation
Order a professional appraisal or get multiple broker price opinions. A fair, documented value helps your negotiations and supports tax reporting later. If siblings disagree about value, a neutral appraiser or mediator can resolve the dispute.
4. Decide how to structure the buyout
Common options:
- One lump-sum payment to each sibling based on their fractional share;
- A promissory note from the buying sibling secured by the property or a mortgage (seller financing or assumption);
- Refinancing an existing mortgage in the buyer’s name and using loan proceeds to pay siblings;
- Staggered payments with a deed transfer and lien held by the sellers until fully paid.
5. Negotiate and document the agreement
Have the parties sign a written buyout agreement that includes the price, payment schedule, security (if any), closing conditions, and who pays closing costs and transfer taxes. Include language about releases of claims and future cooperation (signing deeds, mortgage payoffs, etc.).
6. Complete the transfer at closing
At closing, execute the deed that conveys each selling sibling’s interest to the buyer. Record the deed in the county recorder’s office. If there is a mortgage, arrange payoff or refinance with the lender’s approval. Use an escrow agent or closing attorney to handle funds and recording to avoid title problems.
7. If negotiation fails — understand partition actions
Under North Dakota law a co-owner can file a partition action asking a court to divide the property (partition in kind) or to sell it and divide proceeds (partition by sale). Courts prefer physical division when feasible, but they can order sale if division is impractical. A threat or pending partition suit often motivates settlement and a negotiated buyout. Because a court-ordered sale can leave the buyer without the option to keep the land, negotiate carefully and consult counsel if partition is likely.
8. Consider taxes and cost impacts
Buying out siblings has tax consequences: capital gains exposure for selling siblings, change in tax basis for the buyer, possible gift tax if price is below market, and closing costs. Consult a CPA or tax advisor before completing the deal so everyone understands income tax, estate tax, and basis impacts.
9. Use professionals
Work with a North Dakota real estate attorney to draft documents and with a title company or closing attorney to clear any liens and ensure clean title. If the estate is involved, a probate attorney can advise on whether the personal representative must approve transfers.
Key practical checklist
- Confirm title type and whether probate is open.
- Get an appraisal or broker opinion.
- Discuss financing options and affordability.
- Negotiate price and terms with siblings in writing.
- Prepare deed, promissory note, mortgage, or settlement agreement as needed.
- Close through an escrow or attorney; record the deed.
- Report any tax consequences appropriately.
Remember: if you cannot reach agreement, a co-owner can ask a North Dakota court for partition, which may force sale of the property.
Helpful Hints
- Start with title and probate searches — don’t guess about ownership.
- Get an appraisal early to prevent later disputes about value.
- Put every agreement in writing and include a dispute-resolution clause (mediation/arbitration) to avoid immediate litigation.
- If you need time to secure financing, ask siblings for a short written forbearance or option to buy before anyone files for partition.
- Consider using a mediator experienced in family real estate disputes; mediation often preserves relationships and costs less than court.
- Confirm who will pay closing costs, deed recording fees, and proration of taxes and utilities in your written agreement.
- Consult a North Dakota attorney early if probate is involved or if liens/mortgages complicate the transfer.