Detailed Answer
Short answer: In North Dakota you generally have three routes to convert a co-owned property into cash to pay funeral and property tax expenses: (1) reach a voluntary buyout or sale agreement with the other co-owner(s); (2) have the decedent’s personal representative sell the estate’s share during probate with court approval; or (3) file a partition action in district court asking the court to divide or sell the property and distribute the proceeds. Which route is best depends on how the title is held, whether the deceased’s interest is in probate, and whether other owners cooperate.
1. Confirm ownership and the decedent’s status
Start by checking the deed. If the owners hold the property as tenants in common, each owner has a divisible share that can be sold or probated. If the owners hold title as joint tenants with right of survivorship, the deceased owner’s interest likely passed to the surviving owner automatically and is not part of probate. If you’re unsure of the ownership type, obtain a certified copy of the deed from the county recorder.
2. If the decedent’s share is part of an estate (probate)
If the deceased owner’s interest must pass through probate, the personal representative (executor/administrator) has duty and limited authority to pay funeral expenses, taxes, and other valid debts of the estate from estate funds. The representative may need court approval to sell real property or an interest in real property depending on the probate statutes and the estate’s circumstances.
North Dakota probate and administration follow the North Dakota Century Code probate provisions. See North Dakota Century Code, Title 30 (probate and administration): https://www.legis.nd.gov/cencode/t30.
3. Voluntary sale or buyout (fastest, lowest cost if cooperative)
If the surviving co-owner(s) agree, you can sell the property or have one co-owner buy out the other’s share. A buyout requires agreeing on value, preparing a deed, and recording the transaction. If the estate is involved, the personal representative may need court sign-off or to show authority to sell the interest. Put the agreement in writing and record the deed with the county recorder.
4. Partition action in North Dakota (when cooperation fails)
If co-owners cannot agree, any co-owner may file a partition action in district court where the property is located. Under North Dakota law the court can either divide the property physically among owners (partition in kind) or order a sale and divide the proceeds (partition by sale) when physical division is impractical.
North Dakota statutes and rules governing real property and partition actions are in the North Dakota Century Code Title 32 (property): https://www.legis.nd.gov/cencode/t32. The district court’s order controls how sale proceeds are distributed after paying liens, taxes, and court costs.
5. How proceeds pay funeral and property taxes
- If the decedent’s expenses (funeral, last illness) and outstanding property taxes are owed by the estate, they are estate claims that are generally paid from estate assets in priority under probate rules. The personal representative should file claims, notify creditors, and pay allowed claims before distributing remaining proceeds to beneficiaries.
- If a partition sale occurs, the court will typically pay valid liens and encumbrances (for example a mortgage, property tax liens) from sale proceeds before dividing the remainder among the co-owners according to ownership shares. If funeral expenses are allowed claims against the estate, the estate’s share can be used to pay them.
- If you need funds urgently for funeral or tax deadlines, tell the court or personal representative. Courts can authorize interim actions or sales to protect property from tax foreclosure or to pay reasonable funeral expenses, but you will usually need a filing and court order.
6. Practical steps to follow
- Get a certified copy of the deed and any mortgage or lien records at the county recorder’s office.
- Check whether the decedent left a will and whether someone is appointed as personal representative. If so, contact that person.
- Estimate unpaid property taxes, mortgage balances, and reasonable funeral costs. Get written estimates or invoices.
- Attempt a written agreement with co-owner(s) to sell or buy out the interest. A signed agreement and deed avoids court costs and delays.
- If agreement fails and quick action is required (for taxes or foreclosure risk), consult the district court clerk about emergency motions and timeline for a partition or probate petition.
- If you are the personal representative, file necessary probate papers to obtain authority to act; ask the court for authority to sell if needed.
- Preserve documentation: invoices, proof of service for any notices, and court orders; these will support claims for payment from proceeds.
7. Costs, timeline, and likely outcomes
A voluntary sale or buyout can close in weeks. A probate sale or partition action can take months and create filing costs, attorney fees, court fees, and potential appraisal or sale expenses. In a court-ordered sale, the judge may order the property listed and sold by a neutral officer, then divide net proceeds after liens and costs.
8. When to consult an attorney
Talk to a North Dakota attorney if the co-owners dispute ownership, if creditors threaten tax foreclosure, if you are the personal representative and need court authority to sell, or if the property has complicated debts. An attorney can explain probate deadlines, prepare partition pleadings, and protect your share of the proceeds.
Helpful statutory resources
- North Dakota Century Code, Title 32 (Property and related provisions, including partition concepts): https://www.legis.nd.gov/cencode/t32
- North Dakota Century Code, Title 30 (Probate and administration): https://www.legis.nd.gov/cencode/t30
- North Dakota Courts (district court locations and general forms): https://www.ndcourts.gov
Helpful Hints
- Get the deed early. Knowing whether title is joint tenancy or tenants in common changes your options.
- If property taxes are late, prioritize them—tax liens can force quick sale and add penalties.
- Keep funeral receipts and invoices. Funeral homes often can wait for payment if you explain you are administering an estate; get written arrangements.
- Try a written buyout before filing court actions. Courts often order sale only after weighing options and costs.
- If you are the personal representative, file probate papers promptly to establish authority to manage property and pay debts.
- Document communications with co-owners. Clear written offers or rejections help if you later go to court.
- Expect costs: attorney fees, court costs, appraisal and sale expenses come off the sale proceeds before distribution.
Important disclaimer: This article explains general North Dakota procedures and is educational only. It is not legal advice. Your situation may require professional legal help. Consult a North Dakota-licensed attorney for advice about your specific facts.