The law and inheritance on property

[Jimbob47]

13 years ago my father passed and left no will as a result my parents property was split 50% to my mother and 25% to both my sister and myself. My mother recently passed and left her half to my sister so technically she owns 3/4 and I own 1/4 of the property. Due to my sisters lifestyle she will be unable to maintain the property and does not have the ability to buy out my share and keep the property for herself. The only option I can see is to sell the property while it is still in a good standard as if it drags on it will only decrease in value. I live no where near the property so I am unable to keep the property well maintained. My sister moved back into the property some years ago as she had no other means of accommodation. I'd like to sell my share and move on but she wishes to remain in the property. As this is all new to me and the obvious buy me out solution is a non starter could anyone tell me the best way to proceed. At the moment all our conversations are amicable and I'd like it to stay this way... But I am a realist. Any help would be most appreciated

[Kati]

Re: The law and inheritance on property

tagging [MENTION=39710]des8[/MENTION] xx

[Openlaw15]

Re: The law and inheritance on property

13 years ago my father passed and left no will as a result my parents property was split 50% to my mother and 25% to both my sister and myself. My mother recently passed and left her half to my sister so technically she owns 3/4 and I own 1/4 of the property. Due to my sisters lifestyle she will be unable to maintain the property and does not have the ability to buy out my share and keep the property for herself. The only option I can see is to sell the property while it is still in a good standard as if it drags on it will only decrease in value. I live no where near the property so I am unable to keep the property well maintained. My sister moved back into the property some years ago as she had no other means of accommodation. I'd like to sell my share and move on but she wishes to remain in the property. As this is all new to me and the obvious buy me out solution is a non starter could anyone tell me the best way to proceed. At the moment all our conversations are amicable and I'd like it to stay this way... But I am a realist. Any help would be most appreciated

She has a 3/4 interest and you only have 1/4 interest in the property. You could sell your share to a third party which then frees you from the -property and gives the third party your 1/4 property interest. However, if you tried to force a sale normally you wouldn't be successful owing to your sister being the majority share holder (3/4). When you say your sister's lifestyle what exactly do you mean?

[des8]

Re: The law and inheritance on property

... in practice selling your share to a third party is a no brainer as it is hardly an attractive investment.

1)You could sell your share to your sister via a private mortgage.
Advantages for her: she owns property and pays low interest rate
Advantages for you:, small income for you plus a charge on the property if she ever sells and she is totally responsible for the property

2)you rent your share to her

[Jimbob47]

Re: The law and inheritance on property

Thanks for taking the time to reply. My sister has been living in the house rent free for the last few years my mother paying all the bills, she has no job no income and due to her enjoyment of alcohol is incoherent more than not so communication can be strained, and at times unavailable. The only thing that is going to happen is the property will fall into a state of disrepair I'm not even sure how she is going to afford to pay the most basic of bills.

- - - Updated - - -

she has zero income no job and no money I can't see this being a player but thank you for your time. All she has is the 3/4 of the property but at the moment she cannot see that to stay in it is unfeasable.

[Openlaw15]

Re: The law and inheritance on property

Thanks for taking the time to reply. My sister has been living in the house rent free for the last few years my mother paying all the bills, she has no job no income and due to her enjoyment of alcohol is incoherent more than not so communication can be strained, and at times unavailable. The only thing that is going to happen is the property will fall into a state of disrepair I'm not even sure how she is going to afford to pay the most basic of bills.

- - - Updated - - -

she has zero income no job and no money I can't see this being a player but thank you for your time. All she has is the 3/4 of the property but at the moment she cannot see that to stay in it is unfeasable.

As it is a family matter, by law you must go through family mediation counsellor to settle this, before any court order is possible. There are limited exceptions to family mediation however. Try and sort it out with her now before taking this action. You say your sister lived in the property rent free. When your sister became the beneficiary she inherited 3/4 of the property, so she must at least pay rent for the 1/4 interest that you own. It's very unlikely that a mortgage is suitable for her as she has no income and no motivation to get a job, notwithstanding her apparent problems with alcohol. If the mediation doesn't work you could try and persuade the court for an order of sale as you do have said mitigating circumstances.

[des8]

Re: The law and inheritance on property

Slightly away from your wish to realise your asset before it disappears, have you arranged insurance to cover your liability as part owner of the property?
If it should through some mishap cause injury or damage to a third party or their property, you may be found liable for their losses.

I suspect the best way to resolve your problem would be by helping your sister resolve her alcoholism, but you have probably explored that avenue.