My brother and I inherited 50% of a property in Georgia and our three cousins own the other 50%. Everyone but one cousin want to sell the house and land. She is currently squatting on the property rent free and fighting the sale of the house to the point the area real estate agents don't want to deal with it anymore. What can we do?
Assuming that probate has been completed, you likely will need to retain a real estate lawyer to assist you with partition. There has been a recent change in Georgia's partition laws that MAY apply in your case, and you should discuss that with a lawyer in your area. (Read Ms. DiSalvo's excellent reply for additional information).
The below press release explains a bit on how the law works:
(April 19, 2012) - Uniform Law Commission www.uniformlaws.org
For Immediate Release:
Georgia Second State to Enact Uniform Partition of Heirs Property Act
New Act Protects Vulnerable Landowners
April 19, 2012 – Georgia has recently become the second state in the country to enact the Uniform Partition of Heirs Property Act (UPHPA), a state law which helps to protect the interests and needs of vulnerable landowners. The Uniform Act, introduced in Georgia as HB 744 and sponsored by Rep. Edward Lindsey, was signed into law by Georgia Governor Nathan Deal on April 16.
“Heirs’ property” generally refers to family-owned land, passed down without a will and held by descendants as “tenants in common.” Heirs’ property is typically owned by a family for many generations, with each owner having inherited an undivided interest in the land. Anyone who inherits or purchases even a small interest in the land can file with a court to force other owners to sell. These “partition sales” often occur against the wishes of many of the family members that own the property. The end result is often a sale that does not meet fair market value, and may result in the dispossession of family members from their inherited land.
Property owners with access to trust and estate attorneys, business planners, and other professional assistance, can avoid or mitigate the harsh consequences of a forced partition sale by structuring agreements with their fellow cotenants to contract around the default rules of the tenancy in common. Low- to moderate-income heirs’ property owners, on the other hand, do not have access in most cases to similar professional assistance and are particularly vulnerable to predatory speculation. Most such owners are not even aware that their property is in jeopardy until a partition action is already underway.
The Uniform Partition of Heirs’ Property Act establishes a number of important protections for owners of heirs’ property, while retaining flexibility for those wishing to sell their interest in the land.
Under the Act, the court appoints a disinterested real estate appraiser to assess the fair market value of the property, unless all the cotenants agree to a different valuation method, agree on the value of the property, or the court determines that the cost of the appraisal will outweigh its evidentiary value. The Act provides the procedural timeline for determining the fair market value. After the court determines the value of the property, the Act provides all of the cotenants who did not request partition by sale with a right to buy out all of the interests of those who have done so, at a price equal to the court-determined value of the property multiplied by the fractional interest of the cotenant that is bought out. If the buy-out does not resolve the matter, the Act provides courts with a clear set of protocols and considerations for determining whether and how to proceed with partition in kind or by sale for this important subset of property.
The Uniform Partition of Heirs Property Act provides an important addition to states’ laws governing partition for heirs’ property, and provides heirs’ property owners with significant protections against unexpected and often devastating predatory speculation. The Act will assist heirs’ property owners, particularly (but not exclusively) low- to moderate-income heirs owners, with preserving the integrity and value of property that has both economic and strong familial significanc
You have a very tough situation. If the property was owned by a single estate, the Administrator of the estate should be able to sell it even if your one cousin doesn't want to. However, it sounds like the property is already held in the actual names of you, your brother, and the three cousins. In that case, if the one cousin is unwilling to sell, you and the other owners will likely have to file a suit to have the property partitioned. That means that a court will either have to order that the property be physically divided or that it be sold, and the proceeds split. Georgia has a fairly new statute designed to help families deal with this type of situation. However, it's really a real estate questions, not a probate question, so I added real estate to your practice areas in hopes of getting you more answers about how the partition process works. You could also just sell your interests without your cousin selling hers - she and the purchaser would then own the property. However, you may be unlikely to find a purchaser willing to buy your interests in that situation.
By the way, if your cousin is one of the owners, then she isn't squatting on the property - as a joint owner, she is entitled to use the property just like the rest of you are entitled to use the property. She also does not have to pay rent, just her share of expenses. What she isn't allowed to do is prevent the other owners from also using the property, so you can demand access to the house and land just like she has.
Please consider consulting a good real estate attorney who is experienced in handling these sorts of disputes. If funds are a problem, consider contacting the Georgia Appleseed Project to see if they can help. Good luck to you.
One of the problems with having a lot of owners of a piece of property is that they all have to agree what to do with it. Allowing your cousin to stay on the property may be exposing you and the other owners to liability. You also may end up giving up some of your legal rights if you let her stay there to the exclusion of you and the other owners.
Your next move may be to sue to partition the property - this will put your cousin in the position of having to buy everyone out if she wants to keep the property or the court will likely have the house sold and split the proceeds. You need to consult a real estate attorney.
Assuming that the property has already been distributed to you by way of an Executor or Administrator's Deed, you will need to file a Petition to Partition in the Superior Court of Dougherty Conty. You will need an attorney to help you throught this minefield.
If the property has not yet been transferred, but you will inherit the property in the near future, you can ask the administrator or executor to take actions to dispossess the squatter before transferring the property to you.
