If you’re wondering how to sell a house when there are multiple owners, you’re in the right place. Keep reading for a quick overview on how to sell your Indiana home that’s co-owned.
Let’s be honest, house ownership can be costly; so, co-owning a house with other people has some huge advantages. It’s nice when you’re sharing the financial load, but can be very tricky when selling the house comes up.
Even though the process of selling doesn’t change much when there are multiple owners, issues such as what price to ask, when to sell, and how to sell can come up which makes the situation tricky for everyone. Add in even more contentious situations, like selling a house during a divorce, and the already complex situation gets even more complex.
Selling a House With Multiple Owners? Find Out Exactly How the Title Is Held
The first and most important step to selling an Indiana house when there are multiple owners is finding out exactly how the title is held. You have to know who really owns the house and the details of that ownership. Without these details, it will be impossible to sell your Indiana home.
Most commonly, you’ll find a situation called “joint tenants” or “tenants in common.” “When two or more people buy or inherit a property, they are known as co-owners. Homes are held as joint tenants or tenants in common. If ownership is not specified, a tenancy in common tends to exist by default. To sell a home, co-owners need to communicate and reach a mutual agreement. When disagreements arise over a home, the court can intervene to order a sale and divide the property.”
Additional types of joint ownership exist, so figuring out exactly how yours is set up is crucial. When it comes to joint tenants, all parties own equal shares of a property, but both (or all) owners have to agree to a sale. However, the court can step in and force a sale if an agreement can’t be reached in certain situations.
This quote from an industry expert may explain it better: “If you are joint tenants, you each own an equal share. Both owners must consent to a sale. Tenants in common share separate, undivided interest in the home. Each tenant can sell or give away his share. If you want to sell the home with a tenant in common, you both must agree to sell your shares. The sale proceeds are divided based on the owner’s interest. One owner can also buy out the other tenant in common’s share to simplify the process.”
How to Reach an Agreement When Selling a House with Multiple Owners
The best-case scenario is an early agreement in the process or one that took place before the original purchase. Ideally, each owner would have thought about and reached a consensus on selling when purchasing or inheriting the house. But, like most things in life, the ideal situations don’t always happen and they are that, “ideal.”
Getting multiple parties to agree on important details like what offer to accept, the closing date, and the move-out date isn’t always easy. So before you contact an agent or speak with a local cash home buyer like We Flip Houses, try to come together and set guidelines regarding price, sale date, and anything else that could be a source of disagreement during the transaction.
This will help you to at least have a list of where are are and are not flexible to come back to during the process. Do not skip this step as it’s very important and will make the selling process easier for all owners plus the agent or individual person assisting with the sale of the home.
Legal Issues with Selling a House With Multiple Owners
Beyond the normal inconveniences that come with selling a home, be aware that when selling a house when there are multiple owners you may face more legal issues than you would selling a home with one owner. In fact, “[l]iens, loans and unfavorable legal judgments belonging to one seller can complicate and even derail an entire house sale for all involved.”
“Whether married, divorced, or single, a home seller who owes creditors may incur liens against their name and real estate owned. Tax liens, mechanics liens, unpaid child or spousal support, and other major delinquent debt resulting in legal judgments against one seller can affect the sale of a home. For example, an IRS tax lien would have to be repaid before closing or at closing with sale proceeds in order for the house sale to close. If paid at closing, this additional cost would impact the total net sale proceeds due to the sellers after closing.”
If you are concerned about these legal issues when you’re trying to sell a house in Indiana with multiple owners, give one of our real estate professionals a call at 812.768.3108. While we are not lawyers and are not licensed to practice law, we can give you an overview of what the process will look like. Depending on where you’re located, we may have a lawyer we know and trust to recommend.
The Investor Advantage
Ultimately, selling an Indiana house with multiple owners can be complex and come with many issues. What if we told you that there was a way to skip most of the issues and fast-track the sale of your Indiana home? What if we told you that you wouldn’t lose out on commissions, fees, or any other cost normally associated with selling your home to an agent.
That’s where we, experienced Indiana homebuyers are an amazing option. We specialize in helping individuals in difficult situations sell their homes fast and help them navigate the entire home-selling process. Give us a call today or contact us here to sell a house in Indiana with multiple owners.