Can multiple heirs keep an inherited house instead of selling it?

Short answer: Yes — in many cases heirs who inherit a home together can keep the property instead of selling it. Keeping the house requires agreement among the co-owners or a court order resolving disputes. The practical options include formal co-ownership agreements, one heir buying out the others, renting the property, or in some cases using refinancing or a trust. If owners cannot agree, any co-owner can ask the court to force a sale through a partition action.

Detailed Answer — How this works under Rhode Island law

When someone dies and leaves real estate to two or more people, those heirs usually become co-owners. How they own the property depends on the deed or the probate documents (for example, a will or trust). If the property is held in a trust, the trust controls what happens. If ownership passed by deed as joint tenants with right of survivorship, ownership may automatically pass to the surviving owner(s). If ownership is not specified, heirs most commonly hold the property as tenants in common, which means each heir owns a divisible share that can be sold or transferred independently.

Key points under Rhode Island practice:

Determine how title was transferred. Look at the deed, the will, and any trust. If the property is still in probate, the probate court controls distribution until title transfers.
Agreeing to keep the house is often the simplest path. The heirs should put any agreement in writing. A written agreement can cover ownership percentages, who pays the mortgage, property taxes, insurance, repairs, and how decisions are made.
Buyouts are common. One or more heirs can buy out the others at a fair market value. Obtain a professional appraisal to set the price, and then document the sale and record a deed transfer.
Rental or shared use. Heirs can choose to keep the house and rent it out, sharing income and expenses according to ownership shares. They should sign a co-ownership or rental management agreement to avoid disputes.
Refinance or mortgage. If the property has a mortgage in a deceased owner’s name, the heirs can sometimes refinance in one heir’s name to remove others and to take on the loan, or obtain a mortgage to pay buyouts.
Trusts and probate. If the property is in a living trust, the trustee follows the trust terms. If the owner died intestate (without a will), Rhode Island’s probate rules determine heirs. For information on Rhode Island probate courts see the Rhode Island Judiciary Probate Court page: Rhode Island Probate Court.

When co-owners cannot agree, any co-owner may file a partition action in Superior Court. A partition action asks the court to divide or sell the property and distribute the proceeds according to ownership shares. Partition in kind (physically dividing land) is possible when the property can be fairly divided, but for a single-family home the court usually orders a partition by sale. In Rhode Island, partition and other real-property actions are handled in Superior Court; see the Rhode Island Superior Court page: Rhode Island Superior Court.

Practical outcomes of a partition action:

If the court orders a sale, the property is sold (often at auction or by court order) and proceeds are split according to the owners’ legal shares.
The court may order an accounting of rents, mortgage payments, taxes, and repairs that affect each owner’s share.
Legal fees and costs of sale are typically deducted from the proceeds before distribution.

Rhode Island statutes and court rules govern procedure for probate and civil actions. For the full text of Rhode Island laws, including statutes that may apply to property, probate, and civil procedure, consult the Rhode Island General Laws portal: Rhode Island General Laws. For specific procedural guidance on partition or other civil remedies, check the Superior Court rules and local practice.

Typical steps if heirs want to keep the house

Confirm legal ownership. Get the deed, probate documents, and any trust instrument.
Get a current appraisal. Establish fair market value before discussing buyouts or rental assumptions.
Create a written co-ownership agreement. Include: ownership percentages, who lives in the house, cost-sharing for mortgage/repairs/taxes, rent-sharing rules if rented, dispute-resolution (mediation or arbitration), and exit rules (how and when a sale or buyout happens).
Consider financing options. If one heir will buy out others, they will likely need a mortgage or other funding. Shop lenders early.
Keep good records. Track all payments for mortgage, taxes, utilities, repairs — important for accounting and tax basis calculations.
If disagreements arise, try mediation before court. Mediation is faster and cheaper than a partition action.

How proceeds, taxes, and basis typically work

When a person dies, federal and Rhode Island tax rules can affect the home’s tax basis. Often heirs receive a stepped-up basis to fair market value at death, which can reduce capital gains tax if the property is later sold. Each heir’s tax consequences depend on how title is transferred and how the property is later disposed of. Talk with a tax advisor or attorney to confirm tax effects.

When you should consider legal help

If heirs disagree about keeping the house, if there is mortgage debt or tax complexity, or if a partition action is possible, consult a Rhode Island probate or real property attorney. An attorney can review title, explain rights under Rhode Island law, draft co-ownership agreements, negotiate buyouts, and represent an heir in court if needed.

General Rhode Island resources:

Rhode Island General Laws: https://rilegislature.gov/Statutes/
Rhode Island Probate Court: https://www.courts.ri.gov/Courts/ProbateCourt/Pages/default.aspx
Rhode Island Superior Court (civil and partition actions): https://www.courts.ri.gov/Courts/SuperiorCourt/Pages/default.aspx

Disclaimer: This article is for general information only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a Rhode Island attorney who handles probate or real property matters.

Helpful Hints

Don’t rely on verbal agreements — get any plan in writing and record deeds when ownership changes.
Get an independent appraisal before discussing buyouts so offers are fair and defensible.
Use mediation to resolve disputes early — courts often require or encourage it and it lowers costs.
Keep detailed records of contributions to mortgage, taxes, insurance, and repairs — these affect accounting and final distributions.
Check whether the property is in a trust or has deed language (e.g., joint tenancy) that changes inheritance rights.
Talk to a lender early if financing a buyout; some lenders will not loan on a property with multiple unpaid heirs named on title.
Consider short-term rental or property management if no one can live in the house but heirs want to retain it for long-term value.
Be aware that a partition action can result in a forced sale that may produce lower proceeds than a voluntary sale.