Heir Property in Alabama:
Sole ownership of property comes with its own set of complex rights and responsibilities. Co-owning property with family members or business partners adds an extra layer of rules and potential complications. These issues often surface when the owners have different ideas about how the property should be used or managed. There are many ways to address these conflicts, some involving a division of acreage, placing the property in trust, or filing a partition or sale-for-division action.
If you're having trouble resolving a real estate issue, it may be time to speak with an attorney and find out exactly what options are available to you. Call Alabama Property and Estate Law at 256-489-0038 to schedule a consultation here:
Real Estate Disputes Between Joint Owners:
Co-owning property can work smoothly when everyone is on the same page, but as soon as disagreements arise, it becomes important to understand your rights.
One of the most common situations involves jointly owned property among family members. It's very typical for a parent, as part of their estate planning, to transfer ownership of a property to their children. For example, imagine two siblings who inherit a vacation home together after their parents pass away.
One sibling wants to move into the house, while the other prefers to sell it and split the proceeds. Not only does this create conflict over what to do with the property, but if the first sibling wants to buy out the second's share, there will almost certainly be disagreement over the home's value. Disputes like this can lead to serious arguments and strain family relationships. If communication breaks down or the siblings cannot agree on how to divide their interests, both may have legal options to consider.
Common Co-Owner Situations:
There are multiple different situations in which people end up owning property together. These situations may include:
- Divorced couples
- Business partners
- Inherited property
- Gifted Property
- Friends investing in real estate
- Failed engagements
Other Types of Real Estate Disputes:
While it's common for one party to want to sell and other parties to want to maintain ownership, that isn't the sole type of dispute that may arise. Others may include:
- One party not being able to meet the financial obligations associated with ownership
- One owner misusing, mismanaging, or causing damage to the property
- Disagreements over how to use the property (personal use, rent it out, or use it as a business space, as examples)
- Parties disagreeing over how to maintain the property and who should be responsible for different tasks and expenses
- Access issues
Solutions to Disputes:
There are several ways co-owners can approach resolving property disputes, but a productive conversation starts with both sides clearly understanding their rights. A co-owner who wants to keep the property may decide to buy out the other person's share. In that situation, the parties can agree on a value and then complete the necessary deeds to transfer ownership. If the disagreement makes it impossible to reach a settlement, the next step is often to pursue a legal remedy such as a partition or sale-for-division action through the courts.
When a Partition Action is Appropriate:
A partition action is a lawsuit that asks the court to determine each co-owner's share of the property and the property's value. The court can then order the property to be sold and have the sale proceeds divided between the co-owners. In some cases, a co-owner may also exercise statutory rights to purchase the other party's interest at fair market value instead of proceeding with a sale. A partition action is usually the best option once informal negotiations have broken down. It can also be the most practical route when neither party wishes to continue the relationship going forward. For example, consider a scenario similar to the one described above. The dispute is that one party has been completely shut out of the property and denied access and is essentially forced to foot the bill for the other enjoys the property. In this scenario, pursuing a partition action would allow formal resolution of the dispute or sale of the property.
Get Help with Heir Property Issues—Call Alabama Property and Estate Law:
Real estate disputes can get very messy and very expensive. It's wise to contact an attorney as soon as a problem arises. To set up a consultation with the team at Alabama Property and Estate Law, submit a Consultation Request or call us at 256-489-0038.