My brother and I want to buy out my sister's portion of my Mom's house. I am the executor and have gone through probate. She is willing. What do i have to do? House is free and clear
This response is for educational purposes only and does not constitute legal advice. I am not licensed to practice law in your state.
It is impossible to respond accurately to your question without reviewing title and probate records. However, you imply that the estate is closed and distribution complete. That would mean that the three of you hold title, not the estate. I cannot stress enough that It is extremely important to determine the condition of title if you are to effectively transfer the property.
A transfer of this kind is usually accomplished having your sister sign a quit claim deed to you and your brother. There may be state or local requirements for effecting the transfer or recording the deed.
In making this transfer, you must consider how you and your brother hold title. Title can be held so the property is automatically transferred to the survivor by operation of law if one of you dies, or so that either brother's share passes to his heirs upon his death. The form in which title is held has other ramifications, too.
Talk with a local attorney who is experienced in real estate matters. He or she can determine the condition of title and advise you about the ramifications of how the two of you hold title. Something like this can be harder than it looks. If you do not fully understand what you are doing, you could create a huge mess for yourself and your brother.
To protect yourself, get the property appraised by a certified appraiser. I would recommend that you purchase title insurance protecting your respective interests in the property. Then it is a simple escrow closing between your sister and you and your brother, with you getting a deed and title insurance and you getting money. Youre getting title insurance will also avoid title problems on resale.
You should be consulting with the attorney hired to represent you in the administration of the estate.
If you are attempting to serve in that highly responsible and most vulnerable fiduciary capacity without competent probate counsel, then you are indeed proceeding most foolishly!
Moreover, you had better think twice, thrice and a dozen times before you and your brother create an estate in cotenancy! It is the worst possible way to hold title to real property.
There are no ups. It is all downs. If you want an explanation as to why, I’ll be happy to explain some of the unpleasant legal consequences.
