Last updated on June 25th, 2025 at 05:29 am

Co-ownership of a home is very common. There are many cases and situations where the property was left to one or more heirs.

Joint ownership relieves owners of the financial strain of house maintenance, repair costs, and other bills.

When the owners decide to sell the house, the process may be confounded by owners who refuse to agree to the terms of sale.

In the case of joint ownership, some partners may be doing better financially than others and thus may not be as eager to sell as their less liquid counterparts.

Decisions will need to be made among family members.

6 Steps to Sell a Home with Multiple Owners

A comprehensive guide to navigating complex property sales

Get All Owners to Agree

Every owner must consent to the sale. This includes agreeing on price range, timeline, and terms.

Document all agreements in writing
Set realistic expectations together
Consider mediation if needed

If one owner refuses, you may need a costly partition lawsuit (up to 2 years)

Understand Your Ownership Structure

Most multi-owner properties operate under “Tenancy in Common” with unequal shares and no automatic inheritance rights.

Determine each owner’s percentage
Clarify expense responsibilities
Review existing agreements

Hire One Qualified Real Estate Agent

Choose one agent to represent all owners equally to prevent conflicts and ensure consistent representation.

Look for multi-owner experience
Avoid biased recommendations
Ensure they understand partition laws

Determine Costs & Responsibilities

Establish who pays for what before listing. Document all agreements to prevent disputes.

Real estate commissions (5-6%)
Repairs and staging costs
Ongoing utilities and taxes

Get Professional Appraisal

An objective appraisal prevents disputes over property value and ensures fair distribution of proceeds.

Provides unbiased market value
Helps set realistic asking price
Consider second appraisal if disputed

Negotiate Offers & Divide Proceeds

All owners must agree on offers. Distribution reflects ownership percentages minus all selling expenses.

Document all offers in writing
Compare terms, not just price
Account for capital gains tax

💡 Key Takeaway

Multi-owner property sales require clear communication, professional guidance, and patience. With proper planning and documentation, you can successfully navigate this complex process while protecting everyone’s interests.

Multi-Owner Home Sale FAQ

Frequently Asked Questions

Common questions about selling homes with multiple owners

If a co-owner refuses to sell and no prior agreement exists, you have several options:

Negotiate: Try mediation or offer to buy out their share
Partition lawsuit: Force the sale through court (expensive and time-consuming)
Wait: Continue discussions until agreement is reached

Warning: Partition lawsuits can cost thousands in legal fees and take up to 2 years to resolve.

Proceeds are typically divided based on each owner’s percentage of ownership, but several factors affect the final distribution:

Original ownership percentages (may be unequal)
Who paid for property taxes, insurance, and maintenance
Any improvements made by individual owners
Outstanding mortgages or liens

All selling expenses (commissions, closing costs, etc.) are deducted before distribution.

Tip: Document all expenses and contributions throughout ownership to ensure fair distribution.

No, you should hire one agent to represent all owners equally. This approach:

Prevents conflicts and miscommunication
Ensures consistent marketing and pricing strategy
Reduces confusion for potential buyers
Typically results in lower overall commission costs

Best Practice: Avoid agent recommendations from individual family members to prevent bias claims.

Selling a property in probate requires additional steps and court approval:

Court approval required: All sales must be approved by the probate court
Extended timeline: Process typically takes 45-60 days minimum
Additional costs: Legal fees, court costs, and ongoing property expenses
Documentation: Extensive paperwork and legal filings required

Consider hiring an attorney experienced in probate sales to navigate this complex process.

This should be agreed upon in writing before any work begins. Common approaches include:

Proportional to ownership: Each owner pays based on their ownership percentage
Equal split: All owners contribute equally regardless of ownership share
Advance and reimburse: One owner pays upfront, others reimburse at closing

Important: Get written estimates and approval from all owners before starting any repairs or improvements.

Timeline varies significantly based on cooperation and circumstances:

All owners agree: 30-90 days (similar to typical sales)
Minor disagreements: 3-6 months with mediation
Major disputes: 6 months to 2+ years if legal action required
Probate properties: Add 45-60 days minimum for court approval

The key factor is getting all owners aligned on goals, pricing, and timeline early in the process.

Each owner reports their portion of gains or losses individually:

Capital gains tax: May apply based on property appreciation and ownership duration
Primary residence exemption: Up to $250,000 ($500,000 for married couples) if property was primary residence
Inherited property: May receive “stepped-up basis” reducing tax liability
Investment property: Different tax rules and depreciation recapture may apply

Consult a tax professional: Multi-owner situations can be complex, and tax laws vary by state.

In most tenancy in common situations, owners can sell their individual share, but:

Buyer limitations: Few buyers want partial ownership of a property
Reduced value: Partial shares typically sell for less than proportional value
Right of first refusal: Other owners may have contractual rights to purchase first
Practical challenges: New co-owner relationships can be problematic

Selling the entire property together usually yields better results for everyone involved.

Steps in Selling a Home with Multiple Owners