Multiple Parties on Title

[tuffbrk]

What is the name of your state (only U.S. law)? NJ

Three parties are willed a 1/3 share in a summer home. The will states that each party is entitled to sell their 1/3 share interest in the home.

Two parties want to sell. The third does not want to sell but does offer a buyout to the other two members. Those wishing to sell obtain an appraisal (we'll call it #1). The other obtains their own appraisal (we'll call it #2).

One of the two potential sellers decides that the amount of appraisal #2 (which is acknowledged to be realistic as compared to appraisal #1) is to be split into thirds and that is what the two potential sellers should be paid.

The party who wants to buy them out has agreed to pay all closing costs and purchase the home as-is. However, there is a difference between the buyout offer and appraisal #2. The potential sellers refuse to acknowledge that quite often in a buyer's market they cannot expect to receive the full appraisal amount and that instead they may need to accept market value or something in between. In this case the difference between the offer and the demand is $10k.

One of the two potential sellers has now indicated that they have filed suit to compel the party who does not wish to sell into putting the house on the market anyway.

Can the party who does not wish to sell be forced into putting the house on the market?

Thank you.

 

[tranquility]

People can sell or not. Most competent "appraisal"s have a discounted component for lack of alienability because of multiple owners. Since the ownership discount would be resolved by the sale, I wouldn't agree to the discount, but it would depend on the actual numbers and my desire to sell.

One of the two potential sellers has now indicated that they have filed suit to compel the party who does not wish to sell into putting the house on the market anyway.

Can the party who does not wish to sell be forced into putting the house on the market?

Partition litigation is expensive. Not only in the cost of the suit, but also in the discounted price of the property in an auction at the courthouse steps. If a partition suit has been filed, everyone loses unless there is a deal to take the suit off the table quickly.

 

[tuffbrk]

Thank you Tranquility. When I look at the appraisal, is there an actual line item for the discounted component for lack of alienability? I'm going to google the term because I'm not sure what it means!

Considering the $10k difference in numbers, one would think a compromise mid-way could be reached as opposed to filing suit. I just wasn't certain a Judge could be able to order all parties to sell if one wasn't willing but apparently so?

 

[tuffbrk]

Alienability is the right to sell or transfer ownership of property..thus the "lack of" with multiple owners is because any one party may not wish to sell, thereby hindering the ability to sell or transfer...if I'm interpreting the meaning correctly. If that's so, there really wouldn't be an actual line item. True?

 

[tranquility]

I'm thinking you didn't pay for a true "appraisal" in the way I mean it. When we use them it is for tax purposes and cost thousands of dollars to prepare. (aka qualified appraisal) I'm not thinking that's what you got. I'm thinking you got a market "analysis"-type thing which costs a few hundred.

In a legally defensible appraisal, there should be different methods used to value the property. One of the methods would deal with the alienability issue. It would not be a line, but an entire section which may include other discounts and additions.

If the difference between the parties is less than $10K, there is no way a partition lawsuit is appropriate. Each person will be out well more than that from the process either out of pocket or in less realized from the sale.

Make a deal. Really.

 

[anteater]

If the difference between the parties is less than $10K, there is no way a partition lawsuit is appropriate. Each person will be out well more than that from the process either out of pocket or in less realized from the sale.

Make a deal. Really.

It ain't called "going nuclear" for nuthin'.

 

[tuffbrk]

You're absolutely correct, the appraisal cost under $500. I'm trying my best to purchase but they are being fairly unreasonable. There is simply no way in our market that we would be able to obtain the appraised value. Homes have been on the market in the town for a year and longer. My offer is a mere $10k under. I will go up another $5k and hope they bite.

Thank you again for your assistance. It is greatly appreciated.

 

[HomeGuru]

You're absolutely correct, the appraisal cost under $500. I'm trying my best to purchase but they are being fairly unreasonable. There is simply no way in our market that we would be able to obtain the appraised value. Homes have been on the market in the town for a year and longer. My offer is a mere $10k under. I will go up another $5k and hope they bite.

Thank you again for your assistance. It is greatly appreciated.

**A: sounds fair to me. Keep in mind that the value of the property would be less to an outsider.