Inheriting a House in New Jersey: What Happens When Co-Owners Disagree?

Inheriting a House in New Jersey: What Happens When Co-Owners Disagree?

by | May 21, 2025 | Estate Administration, Estate Planning, Intestate Estate (No Will), Last Will and Testament, Probate

If you inherit a house in New Jersey with someone else and you disagree on whether it should be sold, the situation will likely fall under property law and co-ownership rules. Here’s an overview of your options:

1. Try to Negotiate or Reach an Agreement

  • Discuss the situation with the co-owner to try and reach a compromise. This could involve buying out the other person’s share, agreeing to rent the property, or setting terms for its sale.
  • Mediation with a neutral third party can help if direct negotiation isn’t successful.

2. Partition Action (Court Involvement)

  • If you cannot agree, either party can file a lawsuit for partition in the Superior Court of New Jersey.
  • A partition action can result in one of two outcomes:
    • Partition by Sale: The court orders the property to be sold, and the proceeds are divided between the co-owners according to their ownership shares.
    • Partition in Kind: If feasible, the court physically divides the property. However, this is rare for residential properties because splitting a house isn’t practical.
  • Legal costs will be involved, and the court’s decision is binding.

3. One Party Buys Out the Other

  • If one person wants to keep the house, they could offer to buy out the other’s share. An appraisal may be needed to determine the home’s fair market value.
  • This option avoids the costs and delays of a court proceeding.

4. Co-Ownership Agreement

  • If you and the co-owner can reach a temporary agreement, you might create a written contract outlining how the property will be managed, sold, or divided in the future.

5. Sale Through Agreement

  • If both parties ultimately agree to sell, you can jointly list the house for sale and split the proceeds according to your ownership percentages.

Key Considerations:

  • Legal Counsel: It’s advisable to consult a attorney experienced in New Jersey law. They can guide you through negotiations, prepare documents, or represent you in court if necessary.
  • Costs: If the matter goes to court, both parties may incur legal and court fees.
  • Time: A partition action can take months or even years to resolve.
  • Property Expenses: Until the matter is resolved, co-owners are typically jointly responsible for property taxes, mortgage payments (if applicable), and upkeep.