Can multiple heirs keep a family house instead of selling it?

Short answer: Yes — but only if the heirs agree and take specific steps. Without an agreement, any co‑owner can ask a court to force a sale through a partition action. This article explains how Minnesota law treats co‑owned inherited homes, the practical options to keep the house, and the steps heirs should follow to protect everyone’s interests.

Detailed Answer — how Minnesota law treats multiple heirs and the house

1. Who actually owns the house after someone dies?

First, determine the form of ownership. If the decedent held title as a joint tenant with right of survivorship, the surviving joint tenant(s) usually become the sole owner on death. If the decedent’s interest passes through probate (for example, the decedent held title in their name alone), heirs typically own the property as tenants in common after the estate is settled. Tenancy in common means each heir owns an undivided percentage interest in the property.

For Minnesota statutes on probate and related property rules, see Minnesota Statutes, Chapter 524 (Probate Code): https://www.revisor.mn.gov/statutes/cite/524.

2. What can heirs do if they want to keep the house?

Agree to co‑own and cooperate: Heirs can sign a written co‑ownership agreement that covers mortgage payments, taxes, insurance, repairs, use, rent, and how and when someone may buy out another heir. A clear written agreement reduces disputes later.
Buy out other heirs: One or more heirs can pay fair market value (often determined by an appraisal) to purchase the others’ ownership shares. That payment can come from savings, a new mortgage or refinance, or a personal loan.
Refinance or assume the mortgage: If there is a mortgage, an heir who wants full ownership usually refinances the loan in their own name (or otherwise obtains funds) to pay off and buy out the others, so the lender holds only the one owner’s credit.
Create a life estate or trust arrangement: The estate or heirs can create a life estate or transfer the property into a trust that lets a family member live there while preserving ownership or providing a buy‑out mechanism for remainder beneficiaries. These options should be drafted carefully to avoid unintended tax or creditor consequences.
Rent and share income/expenses: Heirs can keep the property as a rental and share income and expenses according to ownership shares. They should document agreements and accounting practices.

3. What happens if heirs cannot agree?

If one or more co‑owners will not agree to keep the house or to a buyout, any co‑owner may file a partition action in Minnesota district court. Partition actions are a legal remedy to divide or sell jointly owned property. The court may order a physical division when practical; if physical division is impractical or would be unfair, the court will order the property sold and the proceeds divided by ownership share. See Minnesota statutes and rules on partition actions: https://www.revisor.mn.gov/statutes/cite/558.

4. Practical consequences and costs to consider

A partition action can be expensive and adversarial. Courts often prefer sale when dividing the property is impossible or would destroy its value.
Keep in mind carrying costs (mortgage, taxes, insurance, maintenance) while parties dispute ownership. Failure to pay can produce liens or foreclosure risk.
Refinancing to buy out heirs requires qualifying under a lender’s standards; older mortgages may have constraints.

Practical steps heirs should take to keep the house

Check title and probate status: Look at the deed and review the probate file (if any) to confirm who holds title and how the decedent’s interest passed.
Get a professional appraisal: Agree on a neutral, licensed appraiser to establish fair market value for buyouts or accounting.
Talk and document an agreement: Use a written co‑ownership agreement, buy‑sell agreement, or family settlement to fix payment responsibilities, occupancy rights, how decisions are made, and exit rules.
Consider mediation: If family members disagree, a mediator skilled in probate/real estate disputes can help reach a settlement without court.
If necessary, prepare for partition litigation: If one co‑owner threatens partition, be ready with documentation showing efforts to settle and any proposed buyout or settlement offers.

How a buyout typically works

Common buyout steps:

Order an appraisal to set market value.
Determine each heir’s share (for example, equal shares unless the will or deed says otherwise).
The buyer heir obtains funds (cash, refinancing, or lender financing) to pay other heirs their shares based on the appraisal.
Record a new deed transferring full title to the buyer heir and update mortgage/insurance as needed.

Helpful Hints

Always put any agreement in writing. Oral agreements among heirs are risky.
Get an appraisal from a neutral, licensed appraiser; don’t rely solely on online estimates.
Keep good records of every payment made and received for taxes, insurance, mortgage and repairs.
Talk with a Minnesota probate or real estate attorney early—especially before signing deeds or refinancing—to make sure the transaction is structured correctly under Minnesota law.
If disagreements arise, propose mediation before filing a partition action. Mediation is often faster and less costly than litigation.
Be aware that a co‑owner can force a sale by partition if no agreement exists.

Where to find Minnesota law and forms

Look up Minnesota’s probate code at the Revisor site: https://www.revisor.mn.gov/statutes/cite/524. For statutes governing partition actions and procedures, see: https://www.revisor.mn.gov/statutes/cite/558. For local court forms and mediation resources, check the Minnesota Judicial Branch website or contact the district court clerk where the property is located.

Next steps and when to consult a lawyer

Consult a Minnesota probate or real estate attorney if any of the following apply:

The title is unclear or there are conflicting ownership claims.
There is an outstanding mortgage or lender restrictions.
Heirs disagree about whether to sell or keep the house.
You need help drafting a buyout, co‑ownership agreement, trust, or life estate.

An attorney can explain how Minnesota law applies to your facts, prepare documents, and represent you in negotiations or court.

Disclaimer: This article is for general information only and is not legal advice. It does not create an attorney‑client relationship. For advice about your specific situation, consult a licensed Minnesota attorney.