Owning a house with others can offer several clear advantages: it allows you to share the financial responsibilities like bills and repairs, and you can distribute the workload for tasks such as yard work and maintenance among the co-owners. However, challenges may arise when it comes time to sell the property. While the actual selling process resembles that of a single-owner home, disagreements and conflicts among co-owners can make the sale process frustrating and complicated. These disputes may revolve around issues like setting the selling price, determining the timing of the sale, and choosing the method of sale. When you introduce even more contentious scenarios, such as selling a house during a divorce, the complexity of the situation increases significantly.
Find Out Exactly How the Title Is Held
The initial and perhaps most crucial step in selling a house in Florida with multiple owners involves determining the exact nature of the property’s title. Before embarking on the selling process, it is essential to ascertain the true ownership of the house and the manner in which it is owned.
The most prevalent form of joint ownership is referred to as “joint tenants” or “tenants in common.” When two or more individuals purchase or inherit a property together, they become co-owners. These homes are typically held as joint tenants or tenants in common. In cases where ownership is not explicitly specified, it often defaults to a tenancy in common. To facilitate the sale of a jointly-owned home, co-owners must engage in effective communication and reach a consensus. However, when disputes arise concerning the property, the court may intervene to order a sale and equitably divide the proceeds.
Various other types of joint ownership exist, so it is necessary to examine the property deed to determine how the title is structured. Joint tenants hold equal shares in the property, and the consent of all owners is typically required for a sale. Nevertheless, in specific scenarios where no agreement can be reached, the court can intervene and compel a sale.
To elaborate further, industry experts clarify the distinction: In the case of joint tenants, each owner possesses an equal share, and the consent of both owners is imperative for a sale. Conversely, tenants in common hold separate and undivided interests in the property. Each tenant has the liberty to sell or transfer their respective share. In the event of selling a property held by tenants in common, the agreement of both co-owners is necessary to sell their respective shares. The proceeds from the sale are distributed according to each owner’s interest. Alternatively, one owner may opt to purchase the share of the other tenant in common to streamline the selling process.
How to Reach an Agreement
Reaching a unanimous agreement among multiple owners to sell a house in Florida represents the ideal scenario. Ideally, when these co-owners initially acquired the property, they would have considered and mutually decided on selling. However, reality often differs from this ideal.
Convincing multiple parties to align on crucial details such as the acceptable offer, the closing date, and the move-out date is no simple feat. Therefore, before reaching out to a real estate agent, it’s advisable to establish some ground rules regarding the price, the sale date, and any other potential areas of contention during the transaction. This proactive approach provides a fundamental framework or common point of reference to facilitate the process.
In such situations, a Florida real estate agent with expertise in handling property sales involving multiple owners can be an invaluable resource. For further information, please feel free to contact us at (786) 904-1444.
If you to sell a house in Florida when there are multiple owners, you also need to be aware that there are typically more legal issues to deal with (at least potentially). 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 you’re married, divorced, or single, if you’re selling a home and have outstanding debts, it can lead to liens against your name and the property you own. These can include tax liens, mechanics liens, unpaid child or spousal support, and other significant overdue debts that result in legal judgments against one of the sellers. These issues can complicate the sale of your home.
For instance, if there’s an IRS tax lien, it must be settled before the house sale can close. This could mean repaying the lien either before closing or using the sale proceeds at closing. However, if paid at closing, this additional cost would affect the total amount of money you receive from the sale after closing.
If you’re dealing with these types of legal concerns while trying to sell a house in Florida with multiple owners, it’s essential to seek guidance from a real estate professional. You can reach us at (786) 904-1444 for assistance.
The Investor Advantage
In the end, selling a house with multiple owners can be quite challenging, and there are various issues to watch out for throughout the process. While the actual selling process is similar to that of a single-owner house, there are external factors that can make it more complicated.
That’s why it’s crucial to partner with an experienced Florida homebuyer. We have a proven track record of dealing with complex selling situations and can guide you through the entire process. So if your objective is to sell a house in Florida with multiple owners, don’t hesitate to reach out to us for assistance, contact us today at (786) 904-1444.