QUESTION

What rights do brothers who inherit a house have if one wants to buy out the other brothers but the others want to put it in the market?

Asked on Nov 25th, 2014 on Estate Planning - California
More details to this question:
Four brothers inherit a house. One sells his 25% to another brother so one of them now has 50% ownership. The other two want to sell and the one with 50% wants to buy the others share. The two other brothers don't want to sell their share to the 50% holder brother. They want to put it on the market. What rights do the brothers have?
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5 ANSWERS

Edwin K. Niles
In general, the other bros have the right to sue to force a sale (this is called a partition action). You should offer to buy them out at an appraised price, less costs of the broker, if you are able to swing it financially. If necessary, you can make the offer subject to financing, which you can handle as part of the sale escrow. You won't need a broker; any experienced escrow officer can handle it.
Answered on Dec 01st, 2014 at 7:04 PM

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Taxation Law Attorney serving Glendale, CA at Irsfeld, Irsfeld & Younger LLP
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This depends in part on how title is held. Is it still in n estate or trust? Assuming A owns 50% and B and C each own 50%, with no other documents governing the relationship, B and C can force a partition sale. Once they set their price, they probably cannot prevent A from buying it for that or more.
Answered on Dec 01st, 2014 at 6:15 AM

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They all have the same rights. None can force the others to do anything. They will probably have to file a costly [$15,000 plus] partition action to get an order from the court to sell the house and divide the profits. They should find out what will save the most in taxes and how they can best resolve the matter [get a real estate broker to determine the likely sales price and let the 50% brother buy them out]; I personally do not think a real estate appraiser will be as accurate in determining what what the house would really sell for].
Answered on Nov 26th, 2014 at 5:30 PM

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Trusts Attorney serving Sacramento, CA at Law Office of Victor Waid
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The brothers who want to sell, could file a petition to partition in the probate court and obtain an order to sell the property at appraised value on the open market, at which time, the brother who wants to buy you out, can make a bid for the property owned by the two minority owners. If you are a minority, don't let the brother with the largest interest buffalo you by playing deduction cost games in the offer he makes to you.
Answered on Nov 26th, 2014 at 5:30 PM

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Probate Attorney serving Roseville, CA
Partner at James Law Group
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If the 50% shareholder is willing to pay fair market value for the property, the brothers have no right to block that, and quite frankly it will cost them more in the long run with realtor fees, attorney fees for partition, etc. I encourage the 3 to come to an agreement to save time and money.
Answered on Nov 26th, 2014 at 5:26 PM

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