Important Things For Shared Owners Of Heir Property To Know

Posted on: 27 March 2015

When a person who owns real estate passes away, it is not uncommon for the property to be left to his direct descendants in his will. If there are several people who now share ownership of inherited property, this can lead to a stressful situation if they do not all agree on what will be done with the property. These are some important things that those who have equal shares in the inherited property should know.

Selling the Property 

Heir property cannot be sold unless each of the persons who inherited it agrees on it. It cannot be sold by one person without the consent of all other heirs. A clear deed to the property cannot be legally created for the potential buyer without the signatures of everyone who is an heir to the property.

If all heirs agree on the sale, the profit from the sale will be divided equally between each person. This can make the sale of heir property more time-consuming, but it must be done this way in order for the sale to be considered legal and final.

However, if one heir wants to sell his portion of the property, this can be done through the court system. This can be done only if a specific area of the property has already been designated for this particular person. 

Acquiring Loans Against the Property 

Heir property cannot be used as collateral for obtaining a financial loan. This means that one heir cannot get a mortgage against the property regardless of what the money will be used for.

If the property has been partitioned, a loan may be obtained using only that section of land. But, all of the property must be partitioned and have separate deeds in the name of each inherited owner. This prevents a creditor from being able to take possession of the entire piece of heir property should the loan be defaulted.

Usage of the Property 

Every shared owner of heir property has the right to use it as they see fit. This includes building a home on it, raising crops on it, or selling timber from it to make it more profitable. However, if one heir has built a home on the property, this does not give him full ownership of the land. The other heirs still have the legal right to use it for their own purposes.

If there is no will existing to determine who inherits property, it is usually divided evenly between the deceased person's children or grandchildren. If there is an active mortgage against the property that remains unpaid after the person has passed on, the property may be sold for the amount that is owed against it. Contact a professional from Iannello Anderson for more information.