Multi owner property sale with missing owners

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Figuring_it_out
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Multi owner property sale with missing owners

Post by Figuring_it_out » Fri May 17, 2019 8:47 pm

My family owns a property in Louisiana that has 6 owners. Each owns equal share of the property (inheritance). The property has a house on it and is valued at ~400k. One of the owners is hostile with the other 5 and refusing to sell simply to be a pain. :/ The other 5 are in agreement to sell.

Can the 5/6 owners perform some action to force the 1/6 owner to sell and receive his 1/6 share of the proceeds. No one lives in the property and the upkeep falls on the 5/6th owners. The 1/6th guy could care less.

7eight9
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Re: Multi owner property sale with missing owners

Post by 7eight9 » Fri May 17, 2019 8:57 pm

My understanding is that you can seek a partition by licitation (2009 Louisiana Civil Code :: CC 811 - Partition by licitation or by private sale)
link -- https://law.justia.com/codes/louisiana/ ... cc811.html

I am not a lawyer. I suggest that you consult one.
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aude
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Re: Multi owner property sale with missing owners

Post by aude » Fri May 17, 2019 9:46 pm

See whether you have a tenant in common agreement. It may govern. Louisiana law is often different than other states. You need local legal advice!

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Sandtrap
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Re: Multi owner property sale with missing owners

Post by Sandtrap » Fri May 17, 2019 10:00 pm

Partition Action . . depending on State.
Seek legal counsel.
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JGoneRiding
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Re: Multi owner property sale with missing owners

Post by JGoneRiding » Fri May 17, 2019 10:45 pm

This is a really great example of why probate is helpful to force sells of real estate rather than transfer ownership to all the heirs and create a mess!

Scrapr
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Re: Multi owner property sale with missing owners

Post by Scrapr » Sat May 18, 2019 9:08 am

JGoneRiding wrote:
Fri May 17, 2019 10:45 pm
This is a really great example of why probate is helpful to force sells of real estate rather than transfer ownership to all the heirs and create a mess!
and then a couple of owners die and pass through their share to even more owners....

spectec
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Re: Multi owner property sale with missing owners

Post by spectec » Sat May 18, 2019 10:45 am

Yes, you'd better seek legal help to determine if you can resolve this under the laws in your state before there are 16 heirs rather than 6. Once the value gets sufficiently diluted by deaths & divorces, it isn't worth any individual heir's time to try and herd all the cats. Plus many of the second and third-tier heirs have no incentive to cooperate unless they're offered a disproportionate amount of the proceeds. Stalemate.
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ResearchMed
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Re: Multi owner property sale with missing owners

Post by ResearchMed » Sat May 18, 2019 10:58 am

spectec wrote:
Sat May 18, 2019 10:45 am
Yes, you'd better seek legal help to determine if you can resolve this under the laws in your state before there are 16 heirs rather than 6. Once the value gets sufficiently diluted by deaths & divorces, it isn't worth any individual heir's time to try and herd all the cats. Plus many of the second and third-tier heirs have no incentive to cooperate unless they're offered a disproportionate amount of the proceeds. Stalemate.
If it is a state that does have partitions for just this type of situation, then there wouldn't be any "stalemate".
If there is not agreement, then one party can sue for partition (selling the property and splitting the proceeds).
Whether there is enough value for a contested partition would matter.
Presumably, if the "holdout" isn't interested in arranging a split voluntarily, they wouldn't want to spend money on legal assistance to do the same thing, or to force someone to continue to hold it, etc.

That *might* cause one/more of the other owners to "make an offer" or such.
But at least no one is forced to continue to hold ownership with no hope of selling.
(If it's not contested, then the owners can divvy it up themselves.)

RM
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Topic Author
Figuring_it_out
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Re: Multi owner property sale with missing owners

Post by Figuring_it_out » Sat May 18, 2019 4:03 pm

This person may be aminable to sell their portion of the house to the 5. This means they get their portion now vs later when the house sells. How is something like this officially done.

riverguy
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Re: Multi owner property sale with missing owners

Post by riverguy » Sat May 18, 2019 6:16 pm

Exchange money and a deed from them to you five.

Broken Man 1999
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Re: Multi owner property sale with missing owners

Post by Broken Man 1999 » Sun May 19, 2019 9:59 am

JGoneRiding wrote:
Fri May 17, 2019 10:45 pm
This is a really great example of why probate is helpful to force sells of real estate rather than transfer ownership to all the heirs and create a mess!
Amen to that!

It is disheartening to see how lack of attention to details can burden those left behind. Best intentions notwithstanding.

Lack of a will is bad, but also terms of a will can also be bad. Family strife can overwhelm the positives in having a will.

The deceased probably thought equal division of the home was the fair thing to do. But, the devil is in the details. Inheritance was fair, though.

Broken Man 1999
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stan1
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Re: Multi owner property sale with missing owners

Post by stan1 » Sun May 19, 2019 10:31 am

Sandtrap wrote:
Fri May 17, 2019 10:00 pm
Partition Action . . depending on State.
Seek legal counsel.
Yep, or agree to give the 6th person a higher percentage of the proceeds than he's entitled to in order to "buy" his cooperation. If he's in it for spite not money then you don't have much choice but to hire the attorney and seek a legal remedy.

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Sandtrap
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Re: Multi owner property sale with missing owners

Post by Sandtrap » Sun May 19, 2019 10:36 am

stan1 wrote:
Sun May 19, 2019 10:31 am
Sandtrap wrote:
Fri May 17, 2019 10:00 pm
Partition Action . . depending on State.
Seek legal counsel.
Yep, or agree to give the 6th person a higher percentage of the proceeds than he's entitled to in order to "buy" his cooperation. If he's in it for spite not money then you don't have much choice but to hire the attorney and seek a legal remedy.
+1
Yes.
I've been through this.
4 owners. 1 a PITA.
Legal counsel sent a letter to PITA's legal counsel threatening "partition action".
(legally, no 1 owner can force the others "not to sell" a property that is co owned, it reminded).
No further legal action was needed.
Although the PITA owner continued to persist reluctantly till the end of the sale of the property.

Lesson: do not co-own things.
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