A common question after a parent dies is:
“My siblings and I inherited family land together, but one of my siblings wants to build a house on it. Can they do that without everyone’s permission?”
Inherited land can carry enormous emotional and financial value. Family farms, wooded acreage, and longtime family properties often represent generations of memories.
However, when multiple people inherit property together, each person becomes a co-owner with rights and responsibilities. Problems can arise when one owner wants to use the property in a way that affects everyone else.
Who Owns the Property After It Is Inherited?
When multiple heirs inherit real estate, they often become co-owners of the property.
Each co-owner has an interest in the property, but no single owner generally has unlimited authority to make major decisions affecting everyone else.
This includes decisions involving:
- Building structures.
- Selling the property.
- Changing the use of the land.
- Making major improvements.
- Leasing the property.
The details depend on how ownership was created and the rights of each owner.
An estate planning law firm in North Carolina can help explain those ownership rights and responsibilities.
Can One Sibling Build a House Without Permission?
No, a sibling should not assume that inheriting a share of the property gives them the right to build a house, or place a trailer or other structure, wherever they want.
Although each co-owner has rights to use the property, those rights exist alongside the rights of the other owners.
Construction may raise issues involving:
- Ownership interests.
- Permission from other owners.
- Increased property value.
- Use of common property.
- Future division of the land.
- Rights of Way.
- Easements.
- Mineral and Gas rights.
A sibling who builds a home may believe they are improving the property, but the other owners may view it as taking control of a shared asset.
Probate administration services in North Carolina can help families address property and inheritance issues during estate administration.
What If My Sibling Pays for the Construction?
This can make the situation more complicated.
A person who spends money improving jointly owned property may later argue that they should receive credit for those expenses.
However, paying for improvements does not automatically give someone additional ownership rights.
Questions may include:
- Was there an agreement among the owners?
- Was the improvement approved?
- Did the improvement benefit the entire property?
- How should costs and value be allocated?
What If One Sibling Has Always Taken Care of the Land?
Many inherited property disputes involve one family member who has maintained the property for years.
These are often referred to as “carrying costs,” such as paying property taxes, cutting timber, maintaining roads and structures, or managing farming operations.
These contributions may matter when resolving disputes, but they do not give one owner the right to make unilateral decisions about the property.
A trust drafting attorney can help families understand their ownership rights and available options.
What If We Cannot Agree?
When co-owners cannot agree about inherited property, several options may exist.
Families may consider a voluntary agreement, sometimes referred to as a Family Settlement Agreement; some North Carolina courts prefer to see this document signed and notarized by all parties prior to concluding a dispute.
Another option is to mutually agree to sell the property, split the equity proceeds, share the listing/realtor fees, and reimburse co-owners for their carrying costs.
It is a good idea to reimburse costs like this commensurate with each co-owner’s interest in the property if there are unequal shares because a court can order the same reimbursement and include interest on top.
Many co-owners offer to buy out the others, or everyone could agree to partition the land itself and divide it into portions for their own use. We recommend surveying the land when this is done and turning those portions of the land into separate parcels
Mediation
A neutral mediator may help family members solve issues without lengthy litigation.
Partition Action
If agreement is impossible, a co-owner may seek a partition action.
A partition action allows a court to address jointly owned property and determine whether it should be divided or sold.
For many residential properties and smaller parcels, a sale may be the most practical solution because physically dividing the property may not be realistic.
Larger parcels can be divided in the same way as mentioned above that co-owners can voluntarily agree to, but the end result may not be satisfactory to any party.
Can One Person Force a Sale?
A co-owner, regardless of the size of their interest in the property, generally has the right to bring an action to force a sale.
North Carolina law generally recognizes that a co-owner should not be forced to remain in an unwanted ownership arrangement indefinitely.
If the parties cannot agree, a partition proceeding may provide a legal method to resolve the dispute. A partition action attorney can help explain the available legal options.
Why Family Land Disputes Become Difficult
These disputes can become personal very quickly and are underpinned by long-standing grudges between siblings that become especially apparent after the death of the final patriarch or matriarch of the family.
Some family members may have paid towards the property to keep it out of foreclosure only to be stuck sharing it with those who never helped financially in the past.
Addressing the legal issues early can prevent a disagreement from becoming a permanent family conflict.
The Bottom Line
When siblings inherit land together, everyone has rights, but each owner must also consider the interests of the others.
One sibling generally cannot treat jointly inherited property as their personal asset without considering the rights of the other co-owners.
If your family cannot agree about how inherited land should be used, maintained, or divided, estate planning lawyers in North Carolina can help you understand your options, including negotiation, mediation, and partition proceedings.
