How to Buy Out Siblings’ Interests in Co-Owned Property in Washington

Disclaimer: This page provides general information about Washington law and is not legal advice. Consult a licensed Washington attorney before making binding decisions.

Detailed answer — step-by-step path to acquiring full ownership

If you and your siblings co-own a home in Washington and you want to keep the house for yourself, follow these main steps. Each step explains what you should do, why it matters, and practical next actions.

1. Confirm how title is held. Look at the recorded deed (available from the county recorder) to see whether ownership is as joint tenants, tenants in common, or some other arrangement. Tenants in common have separate percentage interests you can buy; joint tenancy may include a right of survivorship. If title is unclear, order a title report or contact the county recorder to obtain a copy of the deed.
2. Get an independent market valuation. Hire a licensed real estate appraiser to establish current fair market value. You can also get a broker’s comparative market analysis (CMA) as a lower-cost alternative. A reliable valuation is the starting point for calculating each owner’s share and for negotiations.
3. Calculate each owner’s financial position in the property. Determine the equity by subtracting outstanding mortgage balance(s), liens, unpaid property taxes, and anticipated closing costs from the market value. Each co-owner’s buyout price generally equals their percentage interest of the net equity (unless you negotiate otherwise).
4. Negotiate price and payment terms with your siblings. Options include: (a) a lump-sum payment for each sibling’s share, (b) paying over time via a promissory note secured by a deed of trust, or (c) trading other assets. Put terms in writing: purchase price, payment schedule, interest rate (if any), what happens on default, and who pays closing costs and excise taxes.
5. Address the mortgage and lender requirements. If the mortgage remains on the property, lenders typically require that anyone assuming payment qualify or that you refinance to remove siblings from liability. Contact the lender early to learn their requirements. If you cannot refinance and the lender refuses assumption, siblings may remain liable unless released by the lender.
6. Use appropriate legal instruments to transfer ownership. Common documents include a deed (quitclaim or warranty deed depending on negotiation and title insurance needs) transferring each selling sibling’s interest to you. Record the signed deed with the county recorder to update title. Washington’s recording statutes govern these filings: see RCW chapter 65.04 for recording requirements (https://app.leg.wa.gov/rcw/default.aspx?cite=65.04).
7. Pay Washington real estate excise tax and record transfer documents. Most transfers of real property in Washington require payment of real estate excise tax under RCW chapter 82.45 (https://app.leg.wa.gov/rcw/default.aspx?cite=82.45). Calculate the tax and submit the required forms with the county when you record the deed.
8. Close through escrow or a title company. Use an escrow or title company to handle funds, obtain a payoff statement for any mortgage, ensure liens are cleared or addressed, calculate prorations (taxes, utilities), and record the deed. Title companies can also issue title insurance to protect your ownership interest.
9. Document the transaction and update records. Make sure the deed is recorded, transfer taxes and recording fees are paid, and the property tax records and homeowner insurance are updated to reflect you as the owner. Keep copies of all closing documents.
10. If siblings won’t agree, consider a partition action as a last resort. If negotiations fail and you cannot reach an agreement, either you or a co-owner can ask the superior court to partition the property under Washington’s partition statutes. The court can physically divide land only in some cases; more commonly it orders a sale and distributes proceeds among owners. See Washington’s partition law at RCW chapter 7.28 (https://app.leg.wa.gov/rcw/default.aspx?cite=7.28). A partition action can be costly and time-consuming, so weigh this option carefully.

Sample hypothetical to illustrate

Hypothetical: three siblings own a house as tenants in common, each with 33.33% interest. Appraised value is $450,000 and mortgage balance is $150,000. Equity = $300,000. Each sibling’s share of equity = $100,000. If you agree to buy both siblings’ interests, you would need to pay approximately $200,000 plus handle mortgage refinancing (or obtain lender consent), transfer taxes, and closing costs.

Helpful Hints

• Obtain a professional appraisal — it strengthens your negotiation position and helps avoid disputes over price.
• Get a current title report early to identify liens, mortgages, easements, or judgments against the property.
• Speak with the mortgage lender before finalizing terms — the lender’s requirements can drive whether you need to refinance.
• Consider using a neutral escrow or title company to hold funds and record the deed to avoid disputes about payments and transfer timing.
• When offering payment over time, secure the seller’s interests with a recorded promissory note and deed of trust to protect both parties.
• Keep detailed written agreements covering price, payment schedule, default remedies, who pays taxes and insurance during the transition, and who pays closing costs.
• Consult a Washington attorney for drafting deeds, promissory notes, or if a partition action may be needed — an attorney can also review tax consequences of the transfer.
• Check real estate excise tax rules and local recording fees at the county level to budget for transfer costs (see RCW chapter 82.45: https://app.leg.wa.gov/rcw/default.aspx?cite=82.45 and recording rules at RCW chapter 65.04: https://app.leg.wa.gov/rcw/default.aspx?cite=65.04).
• Consider mediation if negotiations with siblings become contentious — mediation can be faster and less expensive than litigation.
• Talk to a tax professional about federal tax consequences (capital gains, basis adjustments) and whether any portion of the buyout might be treated as a gift.

Final note: Many issues arise in buyouts — title questions, mortgage obligations, tax implications, and family dynamics. Use the steps above to prepare, but consult qualified Washington professionals (attorney, appraiser, title company, tax advisor) before completing the transaction.