Q: My father recently passed away, and my sister and I inherited his townhouse. We get along, but not very well. I think it would be better to rent it, but she’s not sure yet and might want to sell it instead. Do you have any advice on how to proceed? — Robert
answer: There are several paths ahead of you. The best option is for you to cooperate with your sister.
You can decide to help sell the property, or she can agree to rent it out. In either case, sit down together and develop a game plan.
If you decide to sell, be sure to agree to important terms and conditions beforehand. Decide who will take the initiative and deal with potential buyers, including the real estate agent. Discuss how you will handle the costs of selling the property, including ongoing association fees and necessary repairs. To get the best price for your townhome, it will likely need to be renovated, so decide who will be responsible for that as well.
If you decide to own and rent property, you will have to come to terms with many of the same issues. Discussing your plan is a good start, but it’s best to write it down. Your lawyer can help you draw up a “shared ownership agreement” and help you agree on how owning a home together will be handled.
In addition to negotiating with tenants and making repairs, try to resolve financial issues, such as how to collect and share rent, and how much reserve money to set aside for maintenance. You should also discuss what happens if one of you doesn’t want to be a landlord.
If more than one person owns a property, the owner can force it to be sold even if the other owner wants to keep it. The easiest way to deal with this is to buy her sister’s half from her. You should be able to take out her mortgage and buy her out if you want.
If that is not possible, it may be in your best interest to cooperate with the process.
Push argues that filing a “partition” lawsuit could force a sale of the property, and that legal costs could eat up some of the proceeds.
Gary Singer, a certified real estate attorney, writes about industry legal issues and the housing market. To ask him a question, email gary@garysingerlaw.com or visit SunSentinel.com/askpro.