Owning a house with other people has a number of marked advantages: the financial burden of bills and repairs can be shared, and the labor of, say, yard work and maintenance is usually spread among multiple owners. But problems can come up when it’s time to sell. While the actual selling process is pretty much the same as with a single-owner home, bitter disputes – concerning, for example, what price to ask, when to sell, and how to sell – among the owners can arise that make selling no less than infuriating. Add in even more contentious situations, such as selling a house during divorce, and the process gets complicated even further.
Find Out Exactly How the Title Is Held
The first (and perhaps most crucial) step when selling a house in South Carolina with multiple owners is understanding how the title is held. Before you even consider putting the house on the market, it’s essential to determine who the rightful owners are and how they share ownership. The way ownership is structured will play a major role in the selling process, and it’s not always as straightforward as it might seem.
The most common forms of joint ownership are “joint tenants” and “tenants in common.” When two or more people buy or inherit a property together, they are co-owners. This means they need to be clear on how the title is held. If it’s not explicitly stated, the default ownership type is usually tenancy in common. Both joint tenants and tenants in common have specific rights and responsibilities, so understanding the nuances of these terms is vital.
For a successful sale to take place, co-owners must communicate openly and reach a mutual agreement about selling. Disagreements can lead to complications, and in extreme cases, the court may intervene to order a sale and determine how to divide the proceeds.
It’s important to note that there are other types of joint ownership beyond these two common forms. To understand your specific situation, you’ll need to examine the deed carefully to confirm how the title is held. Joint tenants typically own equal shares of the property, and any sale requires the agreement of all co-owners. However, if a dispute arises and consensus can’t be reached, a court can force a sale to resolve the conflict.
Industry professionals explain it like this: “As joint tenants, each owner has an equal share of the property. All owners must agree to a sale. On the other hand, tenants in common hold separate, undivided interests in the property. Each tenant can sell, transfer, or bequeath their share independently. If you are selling a home as tenants in common, both parties must agree to sell their shares, and the proceeds will be divided according to the ownership interest of each. In some cases, one owner may choose to buy out the other’s share, simplifying the process.”
Ultimately, knowing how the property is owned will guide you through the selling process and help avoid complications down the road. Whether you’re dealing with joint tenants or tenants in common, clear communication and legal advice are essential to ensure a smooth transaction.
How to Reach an Agreement
Agreement early on among owners to sell a house in South Carolina is the best-case scenario. Ideally, the multiple owners would have thought about and reached a consensus on selling when purchasing or inheriting the house. But, of course, that doesn’t always happen.
It’s no easy task to get multiple parties to agree on important details like what offer to accept, the closing date, and the move-out date. So before you contact an agent, you should set some guidelines regarding price, sale date, and anything else that could be a source of disagreement during the transaction. That way, you’ll at least have a baseline or common ground to work from during the process.
A South Carolina agent who has experience selling houses with multiple owners can be a great asset here. To discover more, just call (843) 410-3050.
Legal Issues
If you to sell a house in South Carolina when there are multiple owners, you also need to be aware that there are typically more legal issues to deal with (at least potentially). In fact, “[l]iens, loans and unfavorable legal judgments belonging to one seller can complicate and even derail an entire house sale for all involved.”
Whether married, divorced, or single, a home seller who owes creditors may find themselves facing liens against their name and the property they own. These liens, which can arise from a variety of legal and financial circumstances, can have a significant impact on the sale process. Common types of liens include tax liens, mechanics’ liens, unpaid child or spousal support, and other major delinquent debts that result in legal judgments.
For example, if a seller has an outstanding IRS tax lien, this debt would need to be resolved before the sale can proceed. Typically, the lien must be repaid either prior to closing or, more commonly, at the time of closing using the proceeds from the sale. If the lien is paid off at closing, it will reduce the amount of net sale proceeds the seller will receive after the sale. This means the seller may walk away with less money than expected, as the lien will be deducted from the final sale price before any funds are distributed.
Liens aren’t always obvious at the outset of a sale, which is why it’s crucial for sellers to thoroughly check the title report early on in the process. If a lien is discovered, it could delay or even derail the sale if not properly addressed. In some cases, resolving these issues may involve negotiating with creditors or even seeking legal help to remove the lien before the closing date.
For sellers in South Carolina, understanding how liens could affect a sale is key to avoiding unexpected hurdles. Legal and financial complications can arise at any point, so it’s important to seek guidance from professionals who can help navigate these complexities. Consulting with a real estate expert or an attorney who specializes in property law can ensure that these issues are dealt with in a timely manner, allowing the sale to proceed smoothly.
If you’re concerned about potential liens or any other legal challenges when selling your property with multiple owners, don’t hesitate to reach out to a trusted real estate professional at (843) 410-3050. They can provide you with expert advice, and help you determine the best course of action to resolve any obstacles, so you can move forward with your sale.
The Investor Advantage
Ultimately, then, selling a house with multiple owners can involve a number of problems, and the process is littered with potential pitfalls. Although the selling process is no different from that for a single-owner house, outside factors can ratchet up the difficulty in completing the sale. That’s why it’s vital to work with an experienced South Carolina homebuyer. We’re no strangers to helping resolve the many difficult selling situations that arise and can help you navigate the whole process. So if it’s your goal to sell a house in South Carolina with multiple owners, contact us today at (843) 410-3050.