FAQ — Buying Out Co-Owners’ Interests in Florida Real Property

Short answer: You can often keep a family property by buying your siblings’ shares through a voluntary buyout (preferred), or—if they refuse—by asking a Florida court to allocate the property to you and order payment to the others under the state partition statutes. Which route is best depends on title type, whether the property is in probate, the siblings’ willingness to sell, valuations, and available financing.

Detailed answer

Hypothetical facts for context: Your father owned a house that now belongs to you and two siblings as tenants in common (equal shares) after your father’s death. You want to keep the house and have asked your siblings to sell their shares to you rather than sell the house to a third party.

1. Confirm ownership and any encumbrances

First, confirm how title currently stands. Is the property already transferred to the children (deed recorded), or is it still part of the probate estate? Look at the recorded deed(s) and any probate documents. Also check for mortgages, liens, unpaid taxes, or homestead status. If title is unclear, get a title search and copy of the deed from the county clerk/recorder.

2. Voluntary buyout — the preferred path

Most successful buyouts are voluntary. The basic steps:

Order a professional appraisal or comparative market analysis to set fair market value (FMV).
Calculate each sibling’s share (for example, one-third each if equal ownership).
Make a written purchase offer that states the price, payment terms, and timeline.
If siblings accept, close like a normal real-estate sale: execute a purchase agreement, provide funds (cash, loan, or seller financing), record a deed transferring the seller-siblings’ interests to you, and update title and insurance.

Common payment structures:

Cash purchase at closing.
Mortgage or refinance: you refinance the property and use proceeds to buy out siblings.
Promissory note secured by a mortgage or deed of trust: you pay over time and give the selling siblings a lien until paid.
Installment sale with clear written terms (interest rate, default remedies, acceleration).

3. Valuation and adjustments

Use an appraisal to avoid disputes. Adjust the buyout price for outstanding mortgage balance, liens, prorated property taxes, and contributions (for example, if one sibling paid for major improvements, you may negotiate a credit). Put any agreed offsets in writing.

4. If siblings won’t agree: partition under Florida law

If voluntary negotiation fails, Florida law allows a co-owner to file a partition action. See Florida Statutes, Chapter 64 (Partition of Real Property): Florida Statutes, Ch. 64. A court can:

Order a partition in kind (divide the land) if division is practical.
Order a partition by sale (public or private sale) if division in kind is impracticable.
In some cases, allot the whole property to one party and order that party to pay the other owners their monetary share (effectively a court-ordered buyout) when that remedy is fair and practical.

Key points about partition actions:

Courts prefer partition in kind but will order sale if necessary to achieve fairness.
Partition litigation can be time-consuming and expensive. Legal fees and sale costs reduce the net proceeds.
If you want the property, you can petition the court for allotment to you and request crediting of your contributions (mortgage payments, improvements) — courts consider equitable factors.

5. Probate considerations

If the property is still in probate or the estate hasn’t been fully administered, the personal representative (executor) controls distributions. Discuss buyout or distribution options with the executor or the probate court before you negotiate with siblings. If the will or Florida probate process created specific interests, you must follow those procedures first.

6. Taxes and practical financial issues

Florida has no state income tax, but federal tax consequences can arise, such as capital gains if a sale occurs. Consult a tax advisor about basis, step-up in basis at death, and gift-tax issues if you pay less than FMV.
Closing costs, recording fees, documentary stamps, and title insurance are common costs to budget for.
If you take out a mortgage or refinance to fund the buyout, ensure your income and credit support the loan.

7. Documentation to use

Written purchase agreement/settlement statement.
Deed transferring the sellers’ interest to you (warranty deed or quitclaim deed depending on negotiation and title situation).
If installment payments: promissory note and mortgage/deed of trust, plus clear default remedies.
Title insurance and updated homeowner policies if you become sole owner.

8. When to hire a lawyer

Hire an attorney if:

Title is unclear or the property remains in an open probate case.
Siblings refuse to negotiate or threaten partition litigation.
You need a tailored financing plan, complex deed language, or a court petition for allotment.
There are homestead questions, creditor claims, or large tax issues.

An attorney can prepare documents, negotiate terms, handle a partition filing, and explain how Florida courts are likely to treat your request.

Helpful Hints

Get a clear title report early. It will reveal mortgages, liens, easements, and other surprises.
Order a professional appraisal to set a defensible FMV before making or accepting offers.
Offer mediation first. Courts often require or recommend alternative dispute resolution in family property disputes.
Put every agreement in writing. Oral agreements about buyouts cause disputes later.
Consider seller financing if you can’t qualify for a bank loan — but secure it with recorded collateral (mortgage/deed of trust).
Factor in closing costs, realtor fees (if a sale occurs), taxes, and legal fees when negotiating numbers.
If the property is claimed as homestead by a surviving spouse or minor dependents, special rules may limit transferability — get legal advice.
If you file for partition, be prepared for possible sale rather than allotment; present strong evidence (appraisal, use plans, financing proof) if you want allotment to you.

Where to read the law: For the statutory framework on forced partition in Florida, see Florida Statutes, Chapter 64 (Partition of Real Property): https://www.flsenate.gov/Laws/Statutes/2023/Chapter64.

Disclaimer: This article explains general principles of Florida law and common procedures. It is educational only and not legal advice. For a definitive plan tailored to your facts, consult a licensed Florida attorney who can review the deed, any probate files, tax consequences, and the financial arrangements you propose.