Multiple Owners Or Heirs On A Property But Not Everyone Pitching In Equally?
Having multiple people involved on a property can be a complicated and frustrating situation, especially when not everyone is pitching in for costs, maintenance, and other expenses associated with owning a property. This is because owning a property is a significant financial commitment that requires a lot of effort, time, and money. When one or more owners are not contributing their fair share, it can lead to resentment, disagreements, and even legal disputes. If you find yourself in this situation, consider talking to a professional home buyer. We can offer advice from our vast experience, and discuss your options moving forward.
It’s Just Not Fair!
The first issue that arises when not everyone is pitching in for costs and maintenance is that the burden of these expenses falls on the shoulders of 1 or 2 of the owners. This is often times the case with inherited property and can be a significant financial strain, especially if the property is in need of repairs or upgrades. For example, if one owner is responsible for paying for a new roof, they may not have the financial means to do so, leading to further issues with the property. As the property continues to deteriorate the value goes down which is a detriment to everyone involved.
What about property taxes??? The Parish isn’t going to wait around forever to collect your taxes. If property taxes are not paid, eventually the property will go to tax sale and a tax deed will be sold to a 3rd party buyer. If the taxes are then not redeemed within the proper time frame then you are in jeopardy of losing the property. That is the worst case scenario as it hurts everyone involved.
Lack Of Motivation And Communication
Another issue with having multiple owners on a property and not everyone pitching in is that it can lead to a lack of motivation to keep the property in good condition. When one or more owners are not contributing their fair share, they may not feel a sense of responsibility to maintain the property, leading to neglect and a decline in the overall condition of the property. This can not only decrease the value of the property but also cause health and safety issues, as well as potential legal problems.
Furthermore, when not everyone is pitching in for costs, maintenance, and other expenses, it can also lead to a lack of clear communication and cooperation between the owners. For example, if one owner is responsible for paying for a repair or upgrade, they may not communicate with the other owners about the costs and timeline for the project. This can lead to misunderstandings and disagreements about the best way to handle the property.
Nobody Wants A Legal Battle
The situation can also lead to legal disputes between the owners, especially if one or more owners are not contributing their fair share. This can be a complicated and time-consuming process, and it may require the services of a real estate attorney to resolve. Furthermore, legal disputes can be costly, both in terms of time and money, and they can also damage relationships between the owners.
One way to avoid these issues is to have a clear and detailed agreement between the owners about their responsibilities for costs, maintenance, and other expenses. This agreement should include specific details about each owner’s responsibilities, as well as a plan for how to handle disagreements and disputes. Additionally, the agreement should be in writing and signed by all owners, to ensure that everyone is aware of their obligations and responsibilities.
A professional home buyer can be a resource for you. Give us a call and let’s discuss your situation. We are happy to provide our knowledge and expertise so you have a clear understanding of all your options.
Inherited Property Is A Whole Other Animal
A written agreement is a great idea when multiple owners are purchasing a property, but when a property is inherited it is less of a reality that everyone is going to sit together and come up with such an arrangement. Often times inherited property has sentimental value to one if not all of the heirs, but almost every time the same thing happens. A portion of the people are dealing with the property and another portion is not. When this happens it is very likely that maintenance will be deferred and property taxes will fall behind at some point. Insurance can lapse. This can lead to property deterioration, which devalues the property, and puts the property in great jeopardy of being lost altogether if the property goes to tax sale and an aggressive investor pays the back taxes.
Hire A Property Manager
Another solution is to have a property manager who can handle the day-to-day maintenance and expenses of the property. A property manager can ensure that the property is maintained to a high standard, as well as ensure that all owners are contributing their fair share towards costs and expenses. Additionally, a property manager can also handle any disputes between owners and ensure that everyone is on the same page.
It is also important for owners to have regular meetings to discuss the property, including any expenses, maintenance, and upgrades that are needed. During these meetings, owners can discuss any concerns they have and make a plan for how to handle the property moving forward. Regular communication can help to avoid misunderstandings and disagreements between owners.
In conclusion, having multiple owners on a property can be a complicated and frustrating situation, especially when not everyone is pitching in for costs, maintenance, and other expenses. This can lead to a financial strain, a lack of motivation to maintain the property, misunderstandings, and even legal disputes. To avoid these issues, it is important for owners to have a clear agreement about their responsibilities, have regular communication, and consider having a property manager. By taking these steps, owners can ensure that their property is well-maintained.
A professional home buyer could also be a viable option for you. If everyone simply cannot get along then it’s time to reach out and discuss your options. Give us a call or fill out a form. We will treat you with respect and there is never any obligation to work with us. Find out how the process works here.