When parents die, one of the most difficult things that their adult children may face is deciding what to do with the family home or other property. Sometimes, everybody agrees about the path forward. Often, however, the siblings are divided: One may want to sell immediately, while others may want to keep the property in the family – and some may simply see it as a potential investment, useful for vacations or as a rental.
When co-owners can’t agree on what to do with their real estate, legal disputes can follow. Since nobody can be forced to remain in a shared ownership arrangement forever, the court will usually be asked to make the call via a partition action. However, there are special rules that apply to partition actions involving inherited property.
Inherited family property is afforded special protections
There are two kinds of partition actions possible. A “partition in kind” physically divides property among the co-owners, which leaves each free to do as they please with their part. This approach can work well for large tracts of farmland and undeveloped property, but it is highly impractical for family homes. Those are usually handled via “partition by sale,” which forces the property to be sold and the proceeds divided.
Inherited property, however, comes with unique rules. Washington State adopted the Uniform Partition of Heirs Property Act to protect families from predatory forced sales and preserve generational wealth as much as possible. When inherited family property is at issue, the following rules must be observed:
- Co-owners have the right of first refusal: Per RCW 7.54.050, the co-tenants who do not wish to sell have the right to buy out the interest of the co-tenant who does at fair market value.
- Partition in kind must be considered: Per RCW 7.54.070, the court – not the co-tenants – must determine whether partition in kind is appropriate before forcing a sale.
- An open market sale must occur: If the property is ultimately to be sold, it must be fairly appraised and sold on the open market, not listed at auction. That helps make certain that the co-tenants receive fair value for the property.
If you find yourself in an uncomfortable situation due to inherited property and disagreements with your kin on how to proceed, it may be time to seek legal guidance.