Selling a Co-Owned Property in Oregon to Pay Funeral and Property Tax Costs — FAQ

Detailed answer — how the process usually works under Oregon law

When people jointly own real property and you need to sell that property to pay for funeral costs and outstanding property taxes, the right steps depend on how title is held, whether one owner has died, and whether the co-owners agree to a sale. Below are the usual steps and legal options under Oregon law.

1. Identify how title is held

Obtain the deed from the county records or a title company. The deed will tell you whether owners hold title as joint tenants with right of survivorship, tenants in common, or in another form (for example, community property does not apply in Oregon). If title is joint tenancy, a surviving joint tenant typically becomes sole owner automatically on the other owner’s death. If tenants in common, each owner owns a fractional share and that share can be sold or passed via a will or intestacy.

2. If an owner died, check whether probate or a small-estate process is required

If an owner has died, the decedent’s share may need to pass through probate before it can be sold unless the title already passed automatically (as with joint tenancy) or a valid transfer-on-death/title instrument exists. Oregon’s courts provide practical probate guidance; see the Oregon Judicial Department’s probate resources for basic forms and steps: Oregon Judicial Department – Probate.

3. Check for liens and unpaid property taxes

Property taxes are a lien on the property. Unpaid taxes must usually be paid from sale proceeds or addressed prior to closing because most buyers and title companies require clear title. For information about property tax liens and collection in Oregon, consult the Oregon Department of Revenue and your county assessor or tax collector: Oregon DOR – Property Tax.

4. If all co-owners agree to sell

If every co-owner signs the deed or agrees in writing, you can list and sell the property like any real estate sale. Typical steps: obtain a title report, secure a broker, agree on price and terms, pay off liens and taxes at closing, and split net proceeds according to ownership shares. If one owner’s share is in a decedent’s estate, the personal representative or the person who holds legal authority for the estate must sign to sell.

5. If co-owners cannot agree — partition action

If co-owners cannot agree on selling, Oregon law allows a partition action. A partition lawsuit asks the court to divide the property physically if practicable, or to order a sale and divide proceeds among owners. Oregon’s rules for partition start in ORS Chapter 105. You can read the statute text here: ORS Chapter 105 — Partition. A partition can be costly and slow, so it is often a last resort.

6. Paying funeral expenses from property sale proceeds or estate assets

Funeral expenses are generally considered claims against a decedent’s estate and are typically paid before distributions to heirs. If the estate lacks sufficient liquid assets, selling the decedent’s interest in real property (with the proper authority) may be necessary to raise funds. If no probate administration occurs, parties must negotiate payment or use legal processes (for example, a small estate procedure if qualifying). The Oregon Judicial Department’s probate pages explain the order of claims and administration options: OJD – Probate.

7. Practical timeline and common outcomes

– If co-owners agree, a sale can close in a matter of weeks after title, taxes, and repairs are addressed. If probate is required, expect months depending on complexity. A partition action may take a year or longer.

– Proceeds usually pay liens (including property taxes), necessary estate claims (including reasonable funeral costs if approved in probate), and then any remaining balance is split according to ownership shares or the court’s order.

Statutes and official resources

• Partition actions — ORS Chapter 105: https://www.oregonlegislature.gov/bills_laws/ors/ors105.html
• Oregon Judicial Department — probate information and forms: https://www.courts.oregon.gov/services/Pages/probate.aspx
• Property tax program — Oregon Department of Revenue: https://www.oregon.gov/dor/programs/property/Pages/index.aspx

Helpful hints

• Gather documents first: deed, mortgage statements, recent tax bills, the deceased’s will (if any), and any communications with funeral providers.
• Check title early. A title report reveals liens, encumbrances, and the exact legal ownership.
• Talk to all co-owners. A written agreement to sell will save time and money compared with a court partition.
• Contact the county assessor/tax collector to get a payoff figure for property taxes and any penalties or interest.
• If an owner died, confirm whether the estate needs probate. Small estate procedures may allow transfer without formal probate in limited cases; use court resources to determine eligibility.
• Consider mediation if co-owners disagree. Mediation can be faster and less costly than litigation.
• Use a qualified real estate broker experienced with co-owned or estate sales; they can coordinate valuation and marketing while protecting interests of co-owners.
• Document all communications and keep receipts for funeral and estate expenses; those records matter if claims against the estate are contested.
• Before distributing sale proceeds, ensure title is cleared of liens and the order of claims (taxes, mortgages, approved estate claims) is satisfied.
• Consult a licensed Oregon attorney early if you expect disputes, an unclear title, or complex probate issues. An attorney can explain options, timelines, and likely costs.