Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.
Detailed Answer
When siblings inherit real property in Maine and hold title as co-owners, any one of you can file a partition action under Maine’s statutes (14 M.R.S. § 601 et seq.). A partition action asks the court to divide or sell the property so each co-owner receives their share. However, you can avoid this potentially time-consuming and costly process by negotiating a private settlement.
Here’s how to negotiate effectively:
1. Understand Your Rights Under Maine Law
– Maine law (14 M.R.S. § 601) allows any co-tenant to seek judicial partition. See § 601.
– A court can order a physical division or sale with proceeds split among owners (§ 604).
2. Open a Good-Faith Dialogue
– Schedule a meeting or mediation session.
– Discuss each sibling’s goals: Keep the property, sell it as a whole, or one sibling buys out the others.
3. Obtain Independent Valuations
– Hire a certified appraiser to determine fair market value.
– Share the appraisal report so everyone works from the same numbers.
4. Draft a Written Agreement
– Document buyout terms:
• Purchase price per share
• Payment schedule
• Financing contingencies
– Cover maintenance costs, taxes and insurance until closing.
– Include a clause for dispute resolution (mediation/arbitration).
5. Record and Enforce Your Settlement
– Once signed, record any deed transfers at the county registry of deeds.
– If someone later files a partition action, submit your settlement to the court and file a stipulation of dismissal under Rule 41 of the Maine Rules of Civil Procedure.
Helpful Hints
- Keep negotiations professional: Focus on facts and objectives, not emotions.
- Consider mediation: A neutral third party can reduce conflict and accelerate agreement.
- Get everything in writing: Oral agreements are hard to enforce in court.
- Plan for taxes: Consult an accountant about capital gains and gift tax implications.
- Consult an attorney: Even a brief attorney review can help avoid pitfalls.