Options for Multiple Heirs Who Want to Keep an Inherited House

Disclaimer: This is educational information, not legal advice. I am not a lawyer. For guidance tailored to your situation, consult a Nevada attorney.

Quick overview

When several heirs inherit the same house, they often become co-owners (typically as tenants in common). If one or more heirs want to keep the house instead of selling it, there are several routes that may let the family keep the home without a forced sale. Which path works best depends on whether the estate is in probate, whether there is an existing mortgage or liens, how many co-owners there are, and whether the co-owners can reach an agreement.

Detailed answer — how to keep the house under Nevada law

Basic legal background

When a decedent leaves a house to multiple heirs, each heir usually owns an undivided share. Without an agreement, any co-owner can ask a court to partition the property. Nevada’s statutes that govern partition actions are in Chapter 38 of the Nevada Revised Statutes. A court can divide the property physically (partition in kind) or order a sale and divide the proceeds (partition by sale) if division in kind is not practicable: NRS Chapter 38 (Partition).

Practical options to keep the house

1. Negotiate a buyout (one or more heirs buy the others)

   One common solution is for the heir who wants to keep the house to buy the other heirs’ ownership interests. Typical steps:

   • Get a professional appraisal or broker price opinion to determine fair market value.
   • Subtract any outstanding mortgage, liens, and selling costs to find net equity.
   • Multiply the net equity by each heir’s percentage share to determine each heir’s buyout amount.
   • Arrange payment: the buyer can pay cash, take out a mortgage or refinance the property in their name, or sign a promissory note to the sellers.
   • Record a deed transferring the sellers’ interests and update title.

   Refinancing is often required if there’s an existing mortgage that the buyer cannot assume. The buyer must qualify with a lender and may need to pay closing costs and transfer taxes.

2. Agree to co-ownership terms (occupancy and expense agreements)

   If heirs want to keep ownership shared, they should put a written agreement in place that addresses:

   • Who lives in the house and whether occupants pay “rent” to other co-owners.
   • How property taxes, insurance, utilities, maintenance and repairs will be paid and how records will be kept.
   • How decisions about major repairs, improvements and sale are made.
   • A buy-sell or right-of-first-refusal clause if one heir wants to leave or sell later.

   Written agreements reduce disputes and make it harder for a co-owner to successfully force a sale.

3. Use refinancing or mortgage assumption to consolidate ownership

   If the heir keeping the house can refinance in their own name, they can use the refinance proceeds to pay off other heirs’ shares and any outstanding mortgage. Lenders will evaluate the buyer’s income, credit and the property’s value.

4. Transfer the property into an entity or trust

   Some families move the property into a trust or a family LLC to manage ownership and create rules for occupancy and future transfers. This can centralize control and establish buyout mechanisms. Setting up an entity or trust has legal and tax consequences; consult an attorney and tax advisor.

5. Mediation or negotiated settlement

   If heirs disagree, mediation gives a neutral professional a chance to help the family negotiate an outcome (buyout, co-ownership terms, or timed sale) without litigation. Courts sometimes order mediation before a partition action proceeds.

6. Partition action (what happens if heirs can’t agree)

   If heirs cannot reach agreement, any co-owner can file a partition action in Nevada court. Under NRS Chapter 38, the court may:

   • Order a physical division of the land if it can be fairly divided (partition in kind).
   • Or, if division is impractical, order the property sold and distribute the proceeds among the owners after costs, liens and fees (partition by sale).

   Partition actions can be costly and unpredictable; frequently they end in sale. For the statutory framework see: NRS Chapter 38 (Partition).

Special considerations in Nevada

• Nevada is a community-property state for married owners. If the decedent was married, the spouse’s community-property rights and surviving-spouse rules may affect ownership. Consult a probate or family law attorney about spousal rights.
• If the estate is still in probate, the personal representative or executor has duties and authority under Nevada probate law to manage or dispose of estate assets. Confirm whether the executor already has authority to sell, or whether court approval is required.
• Nevada has no state income tax, but federal capital gains tax rules (and the step-up in basis at death) can affect the tax outcome of any sale or retained ownership—discuss tax consequences with a tax advisor.

Practical step-by-step checklist

1. Confirm how title passed to the heirs (will, intestacy, transfer-on-death deed, joint tenancy).
2. Gather key documents: deed, death certificate(s), mortgage/payoff statements, property tax bills, insurance, will/probate papers, and recent appraisal or comparable sales.
3. Get a current market valuation (appraiser or experienced agent).
4. Meet with the heirs to explore buyout, co-ownership rules, or sale; consider mediation if emotions or disagreements run high.
5. If pursuing a buyout, decide on price, payment method, and draft a written buyout and deed transfer with help from a real estate lawyer or title company.
6. If refinancing is needed, contact lenders early to confirm loan options and timing.
7. If a partition threat arises or the probate process is complex, contact a Nevada real estate / probate attorney promptly.

Helpful hints

• Get valuations from at least one licensed appraiser or two experienced local agents before negotiating buyouts.
• Put any agreement in writing. Oral promises are hard to enforce between co-owners.
• If you’re the occupant, pay your share of ongoing expenses and keep records—this strengthens your position and reduces conflicts.
• Consider a short-term rental or caretaker arrangement to generate income if heirs need time to decide.
• Mediation can save time and money compared to litigation and helps preserve family relationships.
• Be realistic about cash: many heirs cannot be bought out without the buyer qualifying for a mortgage or raising cash.
• Consult both a Nevada real estate/probate attorney and a tax advisor before finalizing major decisions—there may be probate, property, and tax consequences unique to your situation.

When to get legal help

If any of the following apply, talk to a Nevada attorney promptly:

• One or more co-owners threaten a partition action.
• There is a mortgage or liens and the heirs don’t agree about who will pay them.
• The estate is in probate and you’re unsure whether the personal representative can sell or transfer the property.
• Complex family arrangements, competing claims, or suspected fraud.

Even if you hope to keep the house, early legal and financial advice can help you choose the least risky and least expensive path.

Final note: This article summarizes general options and Nevada’s partition statute. It is not legal advice. For a plan tailored to your facts, consult a Nevada attorney who handles probate and real estate matters.