Detailed Answer
This guide explains the practical steps someone in Florida should take to buy out co-owners (for example, siblings) so one person keeps the home. It walks through the legal issues you must check, how to value the property and structure the buyout, what to do if lenders are involved, and what happens if you can’t reach agreement.
Start by confirming ownership form and homestead status
Before you do anything, get a copy of the current deed and a title report (from the county recorder or a title company). The deed tells you whether owners hold the property as:
- Tenancy in common (each owner has a share that can be sold or inherited).
- Joint tenancy with right of survivorship (if one owner dies, the survivors usually inherit automatically).
- Tenancy by the entireties (only for married couples; it has special protections).
If the person who wants to keep the home claims it as their primary residence and meets homestead requirements, Florida’s homestead protections can affect forced sales. See the Florida Constitution, Article X, Section 4: https://www.flsenate.gov/Laws/Constitution#A10S04.
Step-by-step process to buy out co-owners
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Gather documents and financial facts.
Get the deed, mortgage(s), recent property tax bills, homeowner association documents (if applicable), insurance policies, and any estate or probate papers. Identify all liens and outstanding loans on the property.
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Get a market valuation.
Obtain a professional appraisal or at least a broker price opinion to establish fair market value. This gives a neutral basis for calculating each sibling’s share.
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Calculate the buyout price.
Decide how to treat mortgages and liens. Typical approaches:
- Buy the owners’ equity share: (Market value – encumbrances) × owner’s percentage.
- Negotiate a premium or discount based on liquidity, maintenance, or emotional value.
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Determine how you will pay.
Options include refinancing the mortgage in your name (to pay out siblings and remove them from title), paying cash, taking a personal loan, or arranging seller financing where siblings carry a promissory note secured by the property.
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Negotiate and document the agreement in writing.
Prepare a buy-sell agreement that states the price, payment terms, closing date, and responsibilities for prorations and closing costs. Each sibling should sign. Use a real estate attorney or closing agent to prepare documents and ensure legal compliance.
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Close the transaction and transfer title.
At closing, siblings will sign a deed (commonly a quitclaim or warranty deed) transferring their interest to you, and you will pay the agreed buyout amount. The deed should be recorded with the county recorder/ clerk to update title.
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Update mortgage and insurance.
If you refinance, the new lender will place your mortgage lien. Update homeowner’s insurance and property tax billing to reflect the new ownership.
What if someone won’t agree to sell?
If co-owners cannot agree on a buyout, a co-owner can file a partition action in Florida court to force division or sale of the property. Partition actions are governed by Florida law; the court can order a division (partition in kind) or, if division is impractical, a sale with proceeds divided among owners. See Florida’s partition statutes: Chapter 64 — Partition of Property.
Be aware: a forced sale can lead to a less favorable outcome than an agreed buyout. Courts may also account for improvements or waste when dividing proceeds.
Special topics to watch in Florida
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Mortgages and lender approval.
If there’s an existing mortgage, the lender’s consent may be required to remove siblings from liability. Often the buyer must refinance to put the loan solely in their name.
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Homestead protection.
If the property qualifies as homestead for one owner, that owner has strong protections under the Florida Constitution that can affect partitions and creditor claims. See: Article X, Section 4.
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Title issues and deed language.
Carefully review the deed wording and get a title search. If ownership is not tenancy in common, different rules apply. Ask a title company or attorney for confirmation.
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Tax and inheritance consequences.
Buying out siblings can have capital gains, basis, and gift tax implications. Talk to a tax professional about potential consequences.
Practical checklist
Before closing, make sure you have:
- Current deed and title report
- Professional appraisal
- A written buyout agreement drafted or reviewed by an attorney
- Financing commitments or proof of funds
- Signed deed to transfer ownership
- Recorded deed and updated homeowner’s insurance
How an attorney or title company helps
A real estate attorney or a title/closing agent will prepare closing documents, do the title work, handle recording, and advise on legal risks. If negotiations become contentious, an attorney can discuss settlement options, mediation, or handling a partition action under Florida law. For help finding counsel, the Florida Bar’s public resources are here: https://www.floridabar.org/public/.