Legal Question in Wills and Trusts in Massachusetts

Re: Selling of jointly owned real estate

Yes. Those who want to sell can file a petition to partition the estate and sell it. If it can't be partitioned into parcels of equal value that can be sold by those who want to sell, it can be sold. Or those who want to sell can petition for the sale of the property without going to partition first. The two who oppose selling it can buy out the other two and not sell it.

The law requires the owner to have the septic inspected before sale and if it fails, it has to be replaced or repaired and reinspected. If the two who do not want to sell it also do not want to have the septic inspected or if it fails inspection, pay for repair or renewal, the value of the property will be less. They will have only the two of them to pay for the repair or replacement, however, if it fails or if they later want to sell it. The cost of repair or replacement will not go down, and at some point the town will probably decide the septic approach is no longer tolerable and decide to put in a sewer system, which all the abutters will have to pay for pro rata. The value of the property will go up, but the cost of owning it will also go up due to the sewer cost and the sewer fee.

The sister who has lived rent-free in the property should be reimbursed for the cost of major improvements that increased the value of the house or kept it livable, but all other expenses would be just the cost of living there.

You will all owe capital gains taxes on the sale of the property to a non-owner (probably not enough to owe federal capital gains, but you'd have to talk to a tax lawyer or accountant), with the tax "basis" adjusted for the capital improvements, assuming there were any and assuming the sister who paid for them has kept records for tax purposes. The septic work would also be a capital expense.

If no inheritance tax was paid when father died, make sure you wait at least 10 years to avoid having to pay whatever inheritance tax was in effect at the time. 10 years ago, I believe the state had converted to the federal mop-up, and in any event there probably was no tax due, if the estate was less than the threshold amount in effect at the time. (I'd need the year and month of death to say anything certain.)

Re: Selling of jointly owned real estate

Subject to seeing the current title, the two sisters who want to sell can file a Petition to sell or a Petition to Partition which will require the property to be sold if the property cannot be partioned.

The two sisters who do not want to sell could agree to buy-out the two who do, otherwise a Petition is the most viable way to force a sale.

There are a variety of tax issues that relate to sale of the property including issues of capital gain and inheritance taxes, but without more information I can't comment.

As to the septic system any new sale would require a Title V inspection and certificate of compliance. If the system fails you will be required to make repairs or replace it as part of the sale. Not making repairs or replacement will reduce the value.

The sister who lives in the home will be entitled to reimbursement for improvements and certain maintenance that improved or maintained the value of the property.

I suggest you contact an attorney.