How to buy heir properties at low prices

Can I buy heir properties, or do I have to be one of the heirs?

So-called heir properties usually consist of real estate that belonged to someone who died without a will. Children and grandchildren could all be co-owners, with various percentages of ownership. In addition, a wide variety of nieces, nephews, cousins, and others might be coowners.

In such situations, it is virtually impossible to get everyone to agree to a sale. That is because at least one person will have a sentimental attachment to the property. Additionally, the sale proceeds would have to be split up into such small portions that it might not be worth anyone's time or trouble to even think about selling. The land might be vacant, or one of the heirs might be living in an old house on the property.

If it were not for a procedure called a partition, or sale for division, such property would probably remain unused forever or unable to be sold. In virtually all states, any single co-owner can request the court to order a sale of the property. After the sale, the money is split among all owners, according to their percentage of ownership. The one co-owner who requested court action does not have to be one of the original heirs.

Any investor can buy out one of the heirs and become eligible to request a partition. It usually takes very little cash to buy the interest of an heir with a small percentage of ownership. Be aware the some people consider this unethical or at least immoral. It is, however, perfectly legal and often the only solution available when property has many owners who are unable to reach consensus and take any action.

Can I buy heir property for bargain prices?

Normally, the property must be sold for at least its appraised value. You can profit in two ways.

1. You pay pennies on the dollar to buy out another owner's interest, and then file the sale for division lawsuit. Another owner, or a third party, buys the property. You are paid according to your percentage of ownership, not according to how much you paid to obtain it. If you pay US Dollars 1,000 to buy a one-twelfth interest in a property worth US Dollars 240,000, you receive US Dollars 20,000.

2. You can be the successful bidder and buy out the other owners. You might or might not get a bargain price, but you do get a property that was otherwise unattainable.

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