Legal Question in Real Estate Law in California

Re: Siblings inherit undividable land, one wants out, other can't pay

If the sibling who doesn't wish to sell cannot afford the financing to buy out the other sibling, the sibling who wishes to sell can file a lawsuit for partition. The court could order the sale of the property and split the proceeds between the two of them.

Re: Siblings inherit undividable land, one wants out, other can't pay

The legal action for "partition" got its name from the former practice of dividing the farm, but in urban America and with subdivision and zoning restrictions almost everywhere, partition is almost always done by court-ordered sale and division of the net proceeds.

Alternatives to partition exist and may be worth considering, depending upon the age, closeness, incomes etc. of the siblings. One possibility is for the occupant co-owner to use a reverse mortgage to buy out the other. Another is to create a life estate for the occupant (by deed or trust) with the remainder interest to pass to the non-occupant (or his/her heirs) upon the occupant's death. If either of these concepts would produce an inequitable result for reasons related to the parties' ages, health, etc., they could be tweaked with cash adjustments or percentage interest adjustments.

Reminds one somewhat of Solomon's decree on splitting the baby. There are ways around a result no one wants.

Re: Siblings inherit undividable land, one wants out, other can't pay

Your post didn't state, but I assume the resident sibling wants to remain in the house. If that's the case, my colleagues are correct. If the other sibling can find a place to live with the money from the house sale, then by all means both of you should hire a broker and list the property.