Want to Sell Your Share of Inherited Property? Here’s How

You can sell your share of inherited property even if other heirs don’t agree, but the process depends on ownership structure and state law. In most cases, heirs may sell their interest directly, negotiate a buyout, or pursue a partition sale through court. This guide explains the legal options, risks, and fastest ways to turn an inherited ownership share into cash.

When Can Inherited Property Be Sold?

In most cases, an inherited home must go through probate before it can be sold. Probate is a legal process through which a deceased person’s remaining debts are settled and their assets are distributed to surviving heirs or designated beneficiaries. 

There are some instances where an inherited property may be sold prior to being transferred, such as when there isn’t sufficient cash in the estate to cover outstanding obligations. 

For the purposes of this article, however, let’s assume that the house you’ve inherited does not fall into this category and will be going through the probate process.

Can I Force the Sale of the Property?

In some cases, you can force the sale of inherited property. However, it gets tricky with co-owners who won’t cooperate, as well as varying state laws that govern these types of transactions.

For instance, in Texas and California, when multiple people own a piece of real estate, any owner (even the minority owner) can bring what’s known as a partition action, which asks the courts to force the sale of the property.

Can I Sell Only My Share of the Property?

Yes, you can sell your share of the property you’ve inherited. You may choose to do this for a variety of reasons. For instance, maybe you already own a home that you’re happy with, or you simply don’t want the hassle and headaches of dealing with the upkeep. Whatever the reason, as long as you’re the sole beneficiary, it’s your choice to make.

But what if there are multiple beneficiaries, and one or more of them don’t want to sell? This is when things get a bit more complicated. 

While it is possible to force the sale through a partition action, many in this situation will instead choose to simply sell their share of the property. This allows you to avoid the stress and expense of litigation.

Do All Heirs Have to Agree?

The answer to this question is: it depends. For instance, if the heirs have joint ownership, then yes—all would need to come to an agreement, whether it’s to sell the property or buy out one or more of the co-owners.

It may also depend on the state in which the property is located, as well as what instructions were given prior to the owner’s death. To be certain, it’s best to consult with an attorney who specializes in estate cases.

If an amicable agreement can’t be reached, the joint owners can seek resolution through a third party, such as a mediator. Or they may need to turn the case over to the court for a judge to decide.

If one beneficiary wants to sell just their share, things are typically a little more straightforward. The other beneficiaries would simply need to agree to buy out the heir in question and then divvy up that person’s share among the remaining co-owners.

Steps to Sell Your Share of Inherited Property

1. Have a Conversation – Let the other heirs know your intentions. Discuss your reasoning and work toward a mutual agreement for the other owners to buy out your share.
2. Get the Property Appraised – Before you can sell your share of inherited property, you’ll need an accurate idea of its value. Hire an appraiser to determine the home’s market value. 
3. Negotiate – Once you have an idea of what your share of the property is worth, you can then come back to the table with a request. There may be some back and forth with the other owners, so be prepared to negotiate.
4. Consider Mediation – If there are disputes or you can’t settle on a fair purchase price, consider enlisting the oversight of an experienced mediator. 
5. Hire a Real Estate Attorney – Selling only a share of property ownership can be a complicated and confusing process. To understand your rights and avoid potential issues, it’s best to enlist the help of a professional.

If one or more co-owners don’t want to sell the property but do not have the financial means to buy out their share, they may need to take out a small mortgage or agree to a payment plan. 

Tax Implications

Regardless of whether you’re selling the entire property or just your portion, there will almost certainly be capital gains taxes owed. 

Fortunately, this is calculated based on the home’s value at the time of the deceased owner’s passing, also known as the “stepped-up” basis. 

Generally speaking, the faster you sell your share, the lower your tax obligation will likely be. 

Again, it’s best to consult with an expert, so speak with your accountant to make sure you’re covering all your bases.

Alternatives to Selling Your Share of an Inherited Home

If you change your mind about selling, you can always keep your share and retain the property with the other co-owners. Just keep in mind that in doing so, you’ll also retain the responsibilities that come with keeping the home.

If you choose to keep your share, you can:

• Keep the property and decide who gets to live there.
• Rent the home out and make some investment income.
• Take out a loan and use your share as collateral. 

Of course, each of these options comes with its own set of pros and cons. 

Consider a Quick, Cash Sale Instead

One of the main reasons a beneficiary may decide not to sell the property they’ve inherited is because they want to avoid the hassle and expense of selling it. Let’s face it. Traditional real estate sales can take a long time—especially if the market isn’t ideal. 

If you’re looking to sell your share, you may be able to convince the other owners to sell the property in a quick, cash sale instead. This process cuts out the middleman by eliminating the need to hire a real estate agent. 

It also allows the co-owners to sell the home As-Is without having to sink thousands of dollars into repairs or renovations.

A cash sale through a reputable investor can provide all beneficiaries with fast access to the proceeds of the home. That way everyone can walk away with their fair share without having to continue to maintain the home and all the headaches that go along with it. 

Presenting this as an option may just be enough to convince the other co-owners to sell, eliminating the need to negotiate the sale of only your share.