Can a real estateinheritance be bought and soldamong beneficiaries?
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Can a real estateinheritance be bought and soldamong beneficiaries?
Right now the house is divided into 9 equal shares – 1 for each sibling. Could 1 sibling buy out 2 other siblings by paying them what their share of the house is worth so that those 2 siblings no longer have a legal share in the house? If so, then the one who bought them out would now own 3 of the 9 shares of the house. Can this be done if one sibling eventually wants to buy the house but can’t get approved for a mortgage loan yet, so they would slowly buy the other siblings out of their shares over the course of a year or two?
Asked on July 19, 2011 under Real Estate Law, Delaware
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If an person who stands to inherit a percentage of a piece of real property wants to purchase the interests of other people who stand to inherit percentages in the same property, it can be done assuming there is a willing buyer and selelr and there is an agreement as to price.
If the person wanting to purchase his or her sibling's share in the property does not have the cash to pay immediately, an agreement (in writing) can be entered to where a promissiory note is signed by the buyer secured by the property as to all willing sibling sellers and the selling sibling's ownership interests are transferred to the buying sibling. The buying sibling would then make payments to the sibling that is being bought out as agreed over time.
It is best to structure the above transaction with the help of a competent real estate attorney and through an established escrow to prevent problems.
Good luck.
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