Legal Question in Real Estate Law in Maryland

My two sisters and I inherited a vacation home in MD. One sister wanted to be bought out three years ago and we offered to buy her out, but she wanted more than a fair market value. Now the market has dropped she wants to be bought again, but we are unable to buy her out. She says she is going to sue us and get a sale in lieu of partition. The home has tripled in value since we inherited it and it would be a heavy burden on capital gains on us, but since whe is rolling it into a 1031 exchange she thinks she will gain anyway. Can she force a sale now since she is greedy and she know we can't buy her out now? Who pays for all the cost, including her lawyer?


Asked on 7/31/09, 11:26 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Your sister can do this through a partition action, and if comes to this you will all pay significant court costs, including a fee to a court appointed trustee whose task it will be to sell the property. Each of you will pay your own lawyer's fees. If the home has gained that much in value since you inherited it, there should be enough equity to enable you to refinance it and get the proceeds necessary to buy her out. That would enable you to keep it and avoid or at least delay the capital gains taxes.

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Answered on 8/06/09, 9:32 am


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