After my mother, Lucille, passed away in early 2024, my siblings and I faced the emotional task of navigating her estate. Since no estate planning had been done, all her assets had to go through the probate process. One of the biggest decisions we faced was what to do with her house—a townhome in a great location and a lovely community, but one that had fallen into disrepair due to years of hoarding.
My brothers decided they didn’t want the house or the responsibility of restoring it. But I saw its potential and decided to take a chance. My plan? Renovate and transform it into a rental property. In this blog, I’ll share the steps I took to buy my siblings’ shares of the property, from navigating probate to working with a title company, and finally closing the deal.
Deciding to Purchase the Home
When my brothers agreed to sell me their shares of the home, I knew I’d need guidance to handle the legal and financial complexities. I reached out to my lawyer, Paul, and the paralegal handling my mother’s probate. Their advice was invaluable and helped me navigate every step of the process.
One of Paul’s key recommendations was to create an LLC to purchase and hold the property. This would protect me personally in case of any future legal issues related to the house. This was the start of the Merrow Group LLC. Once I decided to move forward, these were the steps I needed to take:
Steps to Prepare During Probate
- Wait for the Creditor Period to Expire:
- In probate, creditors are given a set period (often 90 days) to file claims against the estate. You cannot finalize any property transactions until this period has passed.
- File a Petition to Determine Homestead Status:
- This petition legally establishes the property as the decedent’s homestead and identifies the rightful heirs. In our case, this document gave my siblings and me each a one-third ownership share.
- Obtain Court Approval for the Sale:
- Any sale of property in probate requires court approval. This ensures the sale is fair and that the interests of all heirs are protected.
While these steps were underway, I began preparing for the next phase: working with a title company.
Working with a Title Company
To move forward with the purchase, I needed to partner with a reputable title company. Their role is essential—they ensure the property title is clear, handle the paperwork, and facilitate the transfer of ownership.
Documents Needed for the Title Company:
- Order Determining Homestead Status: This document confirmed ownership of the home.
- Petition for Administration: This court document appoints the estate’s personal representative.
- Death Certificate: A certified copy is required.
- Non-Tax Affidavit: Evidence that estate taxes have been paid or are not owed.
Once these documents were submitted, the title company prepared the final contract and scheduled a closing date.
The Closing Process
The closing process was straightforward but required all siblings to be present. We met at the title company, where we signed the necessary documents to finalize the sale. Everyone needed to bring a valid ID, and the entire meeting took about an hour and a half.
At the end of the process, I walked away with all the closing documentation and ownership of the house. It was a significant milestone, and I’m excited to begin restoring the property and turning it into a rental home.
Final Thoughts
Buying out my siblings’ shares of our inherited home was a complex but rewarding journey. From navigating probate to working with a title company, each step required careful planning and patience. For anyone considering a similar path, I recommend seeking legal guidance, staying organized, and keeping an open line of communication with all parties involved.
The house may have started as a burden, but I see it as an opportunity—a chance to create something new while preserving a part of our family’s legacy.
References
Photo credit: Photo by Sarah Pflug from Burst
