Can I sell a co-owned Delaware property to pay for funeral and property tax expenses?
This FAQ explains how co-ownership, probate, and sale options interact under Delaware law so you can decide whether to sell a shared property to cover funeral and tax bills. This is educational only and not legal advice.
Quick answer
If you and someone else co-own real estate in Delaware, whether you can sell the property quickly to pay funeral and property taxes depends on how title is held (joint tenants with right of survivorship, tenants in common, or held in a trust), whether one owner has died or become incapacitated, and whether the co-owner consents. If the co-owners disagree, you may need a court partition or to administer an estate through probate so an executor or administrator can sell the decedent’s share to pay debts. In all cases, contact a Delaware real estate or probate attorney early to protect your rights and comply with local tax and court rules.
Detailed answer — step by step under Delaware law
1. Identify how the property is titled
Start by looking at the deed. Common ownership forms are:
- Joint tenants with right of survivorship. If one owner dies, ownership typically passes automatically to the surviving joint tenant(s) and the deceased owner’s share does not go through probate. A surviving joint tenant can usually sell the whole property (subject to mortgages, liens, and local rules).
- Tenants in common. Each owner has a separate share that can be sold or inherited. If an owner dies, their share goes to their estate and the personal representative (executor) may need authority to sell the decedent’s share to pay funeral or estate expenses.
- Property held in trust or by an LLC. Trust or entity documents govern sales and distributions.
2. If a co-owner died: probate and paying funeral/property tax bills
If the decedent owned a share (e.g., tenants in common) and there is an estate, the personal representative appointed in probate has authority to settle debts and may sell estate assets to pay funeral expenses and taxes. The Delaware decedents’ estates statutes and probate rules guide how creditors are notified and paid; consult Delaware Code and the probate court guidance (see Delaware Code Title 12 for decedents’ estates: https://delcode.delaware.gov/title12/).
3. If co-owners disagree about selling
If one or more co-owners refuse to sell voluntarily, a co-owner can usually bring a partition action in Delaware courts to divide or force sale of the property. Partition is an equitable remedy that a court may order when co-owners cannot agree. Expect the court process to take time and cost money — sometimes selling privately by agreement is faster and cheaper. For court procedures and locations, see the Delaware Courts site: https://courts.delaware.gov/.
4. Practical steps to sell quickly (when possible)
- Confirm ownership: obtain a copy of the recorded deed from the county recorder/registrar (New Castle, Kent, or Sussex county recorder).
- Determine if an estate is opening: if an owner died and the property is part of an estate, contact the appointed personal representative or file for probate so the representative can lawfully sell estate property.
- Check liens and mortgages: lenders or tax liens must be paid at closing. Unpaid property taxes can create priority liens that must be cleared or resolved; contact the county tax office where the property sits (Delaware county tax collector websites vary by county).
- Get a title search and market valuation: a title company or real estate attorney can identify encumbrances and estimate net proceeds after debts.
- Seek co-owner agreement: negotiate a sale, buyout, or allocation of proceeds. A written agreement avoids litigation.
- If no agreement: consider mediation or file a partition action to force sale. A judge may order the property divided or sold with proceeds split according to ownership shares.
5. Using sale proceeds to pay funeral and property tax expenses
When property is sold, closing proceeds typically pay mortgage(s), tax liens, and closing costs first. If the seller is the personal representative of an estate, Delaware probate procedures govern payment of funeral expenses and creditor claims before distributing remaining funds to heirs. If co-owners sell voluntarily, allocate proceeds according to your agreement or ownership shares. For tax information and payment options, consult Delaware’s Division of Revenue and the county tax office: https://revenue.delaware.gov/.
6. Timeframes and urgency
• Voluntary sales with agreement and clear title can close in weeks.
• Probate and court partition actions commonly take months. If taxes are overdue, contact the county tax office immediately to discuss payment plans or temporary stays to avoid tax sale or penalties.
7. When to get a lawyer
Consult a Delaware real estate or probate lawyer if any of the following apply:
- One owner died and you need to open probate to sell the decedent’s share.
- Co-owners disagree about sale or division.
- There are mortgages, tax liens, or creditor claims that complicate closing.
- You need to file a partition action or protect your rights in court.
Hypothetical example
Suppose two siblings own vacation property in Delaware as tenants in common. One sibling dies and the survivor needs funds to pay the funeral and the county property taxes. The deceased sibling’s share passes to their estate, so the executor must be appointed by the probate court to sell the decedent’s share. If both siblings agree to sell, they can list the house and use closing funds to pay the mortgage, county property taxes, and funeral expenses. If the living sibling refuses to sell, the executor may ask the court for an order to partition or sell the property. A court-ordered sale would pay liens and distribute net proceeds according to ownership interests.
Helpful hints
- Locate the deed first — it controls who has authority to sell.
- If an owner died, find the will (if any) and contact the person named as executor. If there is no will, someone must petition probate court to be appointed administrator.
- Contact the county tax office immediately if taxes are unpaid to discuss options and avoid penalties or tax sale.
- Get a title search early to reveal liens, mortgages, or judgments that may block or delay a sale.
- Consider a buyout: one co-owner may purchase the others’ share to avoid selling the property on the open market.
- Document every agreement in writing and keep receipts for funeral and estate expenses if you expect reimbursement from estate proceeds.
- Use mediation to resolve disputes — it is often faster and less expensive than litigation.
- When in doubt, consult a Delaware attorney experienced in real estate and probate to explain local court practices and deadlines.