Inherited Property Dispute: Can You Force a Sale When Family Occupies It?

A co-owner of an inherited property may be able to force a sale if family members refuse to agree on its disposition, even if a relative is occupying the home at a below-market rent. The situation often hinges on establishing beneficial ownership, which may differ from legal ownership.

If parents leave a house to multiple siblings, but the deed is in the name of only one child, the legal owner is the sibling named on the deed. However, the law differentiates between legal ownership and beneficial ownership—the right to the property's value. If parents provided the purchase funds and placed the house in one child's name for convenience, that child may hold the property in trust for them. If this is the case, the house becomes part of the parents' estate upon their death and is distributed according to their will.

Gathering evidence is crucial to resolving such disputes. This includes documentation on who paid the deposit and mortgage, household bills, the parents' intentions for the property, and why it was initially registered in one sibling's name. The parents' wills and the will-writer's file are also important.

The executors of the parents' estate are responsible for managing its assets, including the house, and administering the wills. If the will grants an equal share of the property to all siblings, this entitlement does not require the agreement of other siblings. Executors must correctly report property ownership for inheritance tax purposes and claim any applicable allowances within the statutory time frame.

Steps for Co-Owners

Once evidence is compiled, a co-owner should formally communicate their position to their siblings. This typically involves requesting a property valuation and proposing a plan for resolution. If family relations are strained, seeking advice from a specialist private wealth disputes solicitor before approaching siblings is recommended.

To protect their interest, a co-owner can register a restriction at HM Land Registry, which prevents the property from being sold or mortgaged without their knowledge. This legal step ensures that any future transaction requires the co-owner's consent.

If an agreement among siblings cannot be reached, and there is evidence that the beneficial ownership belonged to the parents, a court application can be made under the Trusts of Land and Appointment of Trustees Act 1996. The court has the authority to determine each party's share and can order the sale of the property or allow one party to buy out the others. In such proceedings, the court considers various factors, including the rights of any current occupants. While employed adults without children occupying the property are unlikely to prevent a sale, they would need to be given adequate notice.

Furthermore, the situation regarding rent paid by the niece and her partner needs to be clarified. If the house is legally part of the estate, any rent collected should belong to the estate. A co-owner might have grounds to claim a share of past rent or argue for the charging of a market rent. Specialist legal advice can explore all available avenues for possession and/or sale, depending on the specific circumstances of the case.