What steps are involved in selling property held under a life estate deed with different ownership percentages? - Pennsylvania
The Short Answer
In Pennsylvania, selling real estate subject to a life estate typically requires the cooperation of both the life tenant (the person with the right to use the property during life) and the remaindermen (the people who receive full ownership after the life estate ends). When ownership interests are split by different percentages, the sale can still happen, but the division of proceeds and the ability to sell without unanimous consent can become legally and financially complicated.
What Pennsylvania Law Says
A life estate divides ownership into two layers: a present possessory interest (the life tenant) and a future interest (the remaindermen). Because a buyer usually wants “marketable title” (clear, complete ownership), a sale often requires signatures and properly drafted conveyance documents from everyone who holds an interest—especially when the deed lists different percentage interests.
If some future interests are effectively difficult to convey (for example, interests involving people who are not legally able to sign, or interests that are otherwise treated as inalienable), Pennsylvania courts have authority to approve a sale and control how proceeds are held and distributed.
The Statute
The primary law governing court-authorized sales of real property subject to certain future or inalienable interests is 20 Pa.C.S. § 8305.
This statute allows the court, on petition by a party in interest, to appoint a trustee to sell the property and hold the proceeds in trust when real property is held subject to certain future interests (including where future interest holders may be unborn, unascertained, or not legally able to act), so the sale can proceed while protecting everyone’s rights.
Relatedly, Pennsylvania law also addresses how proceeds and converted property can be treated when a present interest is subject to a future interest. See 20 Pa.C.S. § 6113.
For more background reading, you may find these helpful: Can a Life Tenant Sell or Mortgage Life Estate Property Without the Remainderman’s Consent in Pennsylvania? and What Rights Does a Remainderman or Co-Owner Have When a Life Tenant Is Living in the Property in Pennsylvania?.
Why You Should Speak with an Attorney
While the general rule sounds straightforward (“everyone signs”), applying it to a life estate deed with different ownership percentages is rarely simple. Legal outcomes often depend on:
- Title and consent problems: If any interest holder refuses to sign, is deceased, cannot be located, or lacks legal capacity, the transaction may stall—or require a court-supervised solution under statutes like 20 Pa.C.S. § 8305.
- Proceeds allocation (not just “percentages”): Sale proceeds are often negotiated or allocated based on the value of the life estate versus the remainder interests, liens, and the deed language. Getting this wrong can trigger disputes, tax issues, or claims of unfair dealing.
- Protecting future-interest holders: Pennsylvania law can require safeguards where a present interest is converted into cash that must be preserved for future interest holders (see, for example, 20 Pa.C.S. § 6113), which can affect how closing is structured.
Trying to handle a life-estate sale without counsel can lead to a failed closing, an uninsurable title, or litigation among family members over who was entitled to what portion of the proceeds.
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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.