What is the process of refinancing and buying out the other owner? - Pennsylvania
The Short Answer
In Pennsylvania, a refinance-and-buyout usually means you obtain a new mortgage in your name (or keep financing in place) and use the loan proceeds to pay the other owner(s) their agreed share, while the other owner signs a deed transferring their interest to you. If the property is part of an estate, the buyout often must be structured through the personal representative and may require Orphans’ Court involvement depending on the will, title, and whether all interested parties consent.
What Pennsylvania Law Says
When a home is tied to probate (for example, inherited by multiple heirs), the key legal question is often who has authority to convey the property and what approvals are required. In many estates, the personal representative (executor/administrator) has statutory authority to handle estate property, but the scope of that authority can change based on whether the property was specifically devised, whether heirs/devisees must join in the deed, and whether court approval is needed to protect the estate and beneficiaries.
The Statute
The primary law governing an estate-related sale/transfer is 20 Pa.C.S. § 3351.
This statute establishes that (unless a will provides otherwise) the personal representative may sell real property that is not specifically devised, and that real property that is specifically devised generally requires the joinder of the specific devisee.
If court authority is needed (or if it is strategically advisable to obtain a court order so the transaction has the effect of a judicial sale), Pennsylvania law also allows sales, mortgages, or other transactions under court order in appropriate circumstances. See 20 Pa.C.S. § 3353.
Related reading: Can one heir live in an inherited home while another heir wants to sell in Pennsylvania?
Why You Should Speak with an Attorney
Even when everyone agrees on a buyout, probate real estate transfers can derail quickly if the title, authority, or numbers are off. Legal outcomes often depend on:
- Strict Deadlines: Refinancing and estate administration timelines can collide (for example, lender underwriting timelines vs. estate distribution timing), and delays can increase costs or trigger disputes among heirs.
- Burden of Proof: The buyout amount often hinges on defensible valuation and a clear accounting of mortgage payoff, taxes, insurance, repairs, occupancy credits, and estate expenses—issues that can become evidence disputes if relations sour.
- Exceptions: Whether the personal representative can transfer without court approval, whether a specific devisee must join, and whether a court order is advisable under 20 Pa.C.S. § 3353 are fact-specific questions that can affect marketable title and lender requirements.
Trying to handle this alone can lead to a failed closing, a title defect, or a dispute that turns into litigation. A Pennsylvania probate attorney can coordinate the estate authority, deed language, lender/title requirements, and the buyout terms so the transfer actually “sticks.”
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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.