How to Buy Out Siblings’ Interests in Co-Owned Property (Massachusetts)

Quick disclaimer: This article is for educational purposes only and is not legal advice. Consult a Massachusetts attorney before taking legal or financial steps.

Detailed answer — Step-by-step process

If you want to keep a family home that you co-own with your siblings, the usual path is to buy their ownership interests. The specific steps depend on how title is held, whether there is an outstanding mortgage, and whether your siblings cooperate. Below are the practical steps to complete a buyout under Massachusetts law and what to expect at each stage.

1. Confirm how title is held (tenancy in common vs. joint tenancy)

First, pull a copy of the recorded deed from the county registry of deeds or ask your local town clerk. Look at the language: if the deed names owners as “joint tenants” with a right of survivorship, the share of a deceased co-owner may pass automatically. If the deed lists owners without survivorship language, the default in many situations is tenancy in common, where each owner holds a divisible share that can be sold or transferred.

Massachusetts law on conveyances and deeds is collected in the General Laws (see Chapter 184 for conveyances and related rules): M.G.L. c. 184 (Conveyances).

2. Get a current market valuation

Hire a licensed appraiser or get multiple broker comps to determine fair market value. A written appraisal is the best evidence if siblings challenge the price.

3. Determine each sibling’s share and calculate the buyout amount

Once you have market value, multiply by the sibling’s fractional ownership (for example, 1/3 each if three equal owners). Subtract any outstanding liens or mortgages that will be paid off at closing to calculate the net equity each sibling is entitled to.

4. Decide how you will pay (cash, new mortgage, seller financing, promissory note)

Common options:

Refinance the property in your name only to cash out sibling shares and remove them from the mortgage (lender approval required).
Take a new mortgage in your name to pay siblings.
Pay siblings in cash out-of-pocket.
Negotiate a purchase agreement where you pay siblings over time and sign a promissory note; secure the note with a mortgage or lien if siblings agree.

5. Negotiate and document the agreement

Get agreements in writing. Typical documents include a purchase and sale agreement, a release of interest signed by the selling siblings, a quitclaim deed or warranty deed transferring their ownership interest to you, and any promissory note or mortgage if payment will be made over time.

6. Address the mortgage and lender requirements

If there is an existing mortgage, most mortgages include a clause that the lender must consent to removing a borrower. To remove siblings from loan liability, you generally must refinance into a loan in your name alone or get the lender’s written release (rare). Talk to your lender early.

7. Close and record transfer documents

At closing, siblings sign the deed (often a quitclaim deed) and any releases. After closing, record the deed and other required documents at the county registry of deeds. Recording protects the new ownership against third-party claims.

8. Update title insurance and tax records

Order an updated title search and title insurance endorsement (if you have an existing policy). Notify the assessor’s office and update municipal records. Be aware of potential transfer taxes or recording fees charged by the city or town.

9. Consider tax and estate consequences

A buyout can trigger income tax, capital gains tax, or gift tax issues depending on whether you pay below market or above market and how the payment is structured. Work with a tax advisor to understand the tax consequences of a cash purchase, promissory note, or forgiveness arrangement.

10. If siblings refuse — partition actions as a last resort

If negotiations fail, Massachusetts law permits a co-owner to file a partition action in court to force either physical division (rare for a single-family home) or sale and division of proceeds. A partition action can be costly and unpredictable: courts will consider each party’s contribution and may order a sale by auction or open market. Because of the stakes, consult an attorney before filing. Court rules and remedies are part of Massachusetts property law and court practice; an attorney can advise on strategy and likely outcomes.

Practical examples and timing

Example A — Refinance buyout: You refinance the mortgage for the full balance plus funds to pay out two siblings. The lender closes, you pay siblings, siblings sign quitclaim deeds, deeds record. Time: 30–60 days (typical mortgage refinance timeline).

Example B — Seller-financed buyout: You sign a promissory note with two siblings and give them a mortgage on the home as security. You make payments to siblings until note is satisfied. Time: depends on negotiation; recording takes a few days.

Helpful Hints

Confirm how title is held before doing anything. The deed controls who can sell.
Get a professional appraisal — it reduces disputes about fair market value.
Talk to the mortgage lender early to learn options for removing co-borrowers.
Use clear written agreements and have deeds and releases prepared or reviewed by an attorney.
Record deeds at the county registry of deeds immediately after closing to protect new ownership.
Consider using escrow for the buyout closing to ensure funds and signed documents exchange properly.
Keep tax consequences in mind — consult a CPA about gift or capital gains concerns.
If a sibling is uncooperative, don’t assume litigation is your only option — mediation or a neutral valuation may resolve the dispute faster and cheaper than a partition lawsuit.
Before signing any document, ask an attorney to confirm the language removes the sibling’s interest and any future claims.

Where to get help in Massachusetts

County registry of deeds — for copies of recorded deeds and to record new deeds.
Massachusetts Land Court or Superior Court — for cases involving title disputes or partition actions.
Licensed real estate appraisers and mortgage lenders — for valuation and financing.
An experienced Massachusetts real estate attorney — to draft documents, negotiate with siblings, and represent you in court if necessary.

For Massachusetts statutory guidance on conveyances and deeds, see M.G.L. c. 184 (Conveyances): https://malegislature.gov/Laws/GeneralLaws/PartII/TitleI/Chapter184.

Final note: Buying out co-owners involves legal, financial, and tax issues. While the steps above outline a typical process in Massachusetts, your situation may have special considerations (mortgage clauses, liens, trust or probate issues, or unequal ownership shares). Speak with a Massachusetts real estate attorney to protect your rights and complete the transaction correctly.