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If you are dealing with a property dispute after the death of a loved one, it is essential to know your rights and what steps to take. There are many reasons why a property dispute can arise, but often negotiation or mediation can help. Getting legal advice from an experienced property lawyer who can guide you through the process and protect your interests is crucial. Let’s look at why property disputes arise between family members after a death in Texas.
Inheritance Laws in Texas
Texas has laws governing how property is divided among heirs after someone passes away. These state statutes determine who gets what share of the estate if there is no will.
When a loved one passes away, emotions run high in the family left behind. Depending on whether the decedent left a will or not, disputes over property inheritance can come up. Disgruntled heirs may feel that someone was treated unfairly in the will. Or perhaps 5 children inherited the property and can’t decide on next steps.
Heirs often need help to settle complex issues related to property inheritance. Perhaps a newly executed will states that one sister inherits the family home while a 20-year-old transfer on death deed names the other sister.
Heirs may wish to contest a will in court if they believe it was unfair. However, going to court to solve a real estate issue can take years and be costly to all involved. The good news is that you can often settle a property dispute with the help of a real estate lawyer.
Since a real estate legal professional understands how the laws apply to your situation, they can help you know what is fair. It makes sense to avoid litigation, and with a mediation attorney, you can save time and money while finding an amicable solution based on applicable Texas statutes.
Family Member Dies Without a Will (Intestate)
When someone passes away without a will, the process of distributing their assets is known as intestacy. This can lead to disputes between heirs who may disagree on how the property should be divided.
Intestate law statutes state that if someone dies without a will, their spouse inherits 1/3 of their personal estate, and their children (or grandchildren) inherit the other 2/3. The spouse receives 1/3 interest in the home and land for life, and the remaining 2/3 passes to the decedent’s children or grandchildren.
If the decedent does not have descendants, then half of the personal property, home, and land goes to the spouse, and the other half passes to the deceased’s parents. If there are no living parents, then the other half passes to their siblings.
You can see how intestate law could cause family strife! Texas law typically gives preference to spouses and children over other relatives, but this can vary depending on the circumstances. A knowledgeable real estate lawyer can help you work through any issues related to real property inheritance when there is no will.
Family Member Dies With a Will (Testate)
When a family member passes away with a will, their wishes are typically followed. However, heirs can contest the will’s validity if they believe it was written unfairly or under duress. In Texas, wills must meet certain legal requirements to be valid and enforceable.
Reasons Heirs May Contest a Will
- Dispute over the language of the will
- Written under duress or undue influence
- Not properly signed or witnessed
- Forgery or other illegal activities
- More than one will
- An older will that didn’t take a newer heir into consideration
- Improper or criminal negligence by the executor in their fiduciary duty to distribute the estate
- An heir is disinherited in the will
As a relative, you can work with an attorney to contest a will and legally dispute your right to inherit a share.
Three Ways to Own Property Jointly in Texas
- Community property (marriage relationship): Ownership as a married couple does NOT have right-of-survivorship unless the couple signs right-of-survivorship agreements
- Joint Property (with or without right-of-survivorship): A tenant owns property together with one or more other parties is a joint tenancy. With right-of-survivorship, the arrangement is called “tenancy in common”
- Life estate: One party gives a partial interest to an heir or other party.
Let’s see how these types of ownership work and how a property dispute can happen in each case.
Community Property Ownership
As a married couple residing in Texas, your joint property is considered jointly owned community property. You have the choice to possess it with right-of-survivorship so that when one of you passes away, the other can immediately inherit without any legal confusion or problems.
With this survivorship clause in place, if one spouse passes away, their partner will automatically and immediately inherit full ownership of the shared property.
If you do not own the property with right-of-survivorship, when one spouse dies, the other spouse’s share of the property goes to their estate.
When living children expect more of an estate, especially if their parent’s spouse is not their parent, disagreements quickly arise! You can usually resolve any dispute over these rights with an attorney’s help through mediation or court proceedings.
When two or more heirs are involved, agreeing on dividing a property inheritance is often difficult. This type of dispute can become very complex, especially if there is considerable animosity between the parties.
An attorney specializing in real estate disputes can help you work through all your legal options and resolve the differences with minimal disruption to all involved. Next, let’s look at how you can own property can in Texas.
Joint Ownership of Property
If you are unmarried and own property with someone else, the ownership amount is in your contract. However, inheriting property with a parent or sibling can lead to complex shared ownership issues, especially when you disagree about what to do with land or a home.
Your tax and monthly loan obligations depend on the percentage of your legal ownership. If you have a right-of-survivorship clause, when one owner dies, their portion of the real estate property transfers to the other owners automatically.
Life Estate Joint Owner
An experienced attorney can create a life estate title that transfers partial ownership of property to an heir, enabling older persons to provide for their loved ones.
However, this method of joint possession limits the first party from possessing absolute authority over the sale or refinancing of the real estate, since they are obligated to obtain permission from their co-owner before any such transactions.
When A Joint Property Legal Dispute Arises
Owning property with a partner can be incredibly rewarding but there is always the possibility of conflict when it comes to important decisions. Whether you’re selling, making changes, or covering taxes and expenses, having a plan in place beforehand helps ensure that everyone’s interests matter.
Without an agreement on how best to handle property dispute issues, navigating difficult conversations may become increasingly difficult. If one joint owner desires to sell while another does not, the situation can quickly become tricky and difficult to navigate!
To avoid future disputes and secure your interests in a property, consulting an experienced Texas real estate attorney is strongly recommended. Their specialized knowledge of the applicable state laws can help resolve any potential issues.
Property Dispute Arising From Debts and Obligations
If the joint owner of your real estate property acts recklessly, you could be in trouble. You must watch out for any debts or obligations they incur that may influence you, such as bankruptcy filings, tax liens due to non-payment, and judgments placed against them.
If you don’t possess a homestead exemption, creditors can place liens on your property and seize it to collect someone else’s debt. Not only could this be financially devastating for you, but your home may end up at a public auction!
Working through mediation with your attorney or filing a lawsuit for an injunction is the most effective way to guarantee your property rights. It’s essential to consult with an expert real estate attorney who can support your best interest. An experienced lawyer will use their knowledge of Texas law to create a solid case for settlement or litigation.
Property Disputes About Selling or Refinancing Your Home
When selling a property, all parties must agree before making any deal. Sometimes common property disputes revolve around whether to accept an offer or not. A property dispute may also arise when joint owners disagree about whether to sell a home or land or have the property.
Common types of property disputes include whether it is better to fix items before listing the property for sale or how much renovation to do for top dollar.
The legal aspects of refinancing can also be a complex situation, where one person may dispute whether the interest rates make it worthwhile. Discussions about which lender to use for refinancing or debates over contract terms arise. When one co-owner has a poor credit score, the other may draw up documents to buy out their property share and refinance in their own name.
Wanting legal action against a co-owner to force a sale is not uncommon. These legal disputes bring major headaches when a person owns property with another. However, legal proceedings associated with forcing a property sale can be costly and time-consuming.
When a family member has property ownership disputes with you, it can trigger unintended hurtful emotions for your other family members. With family involved, you may decide to compromise instead of filing suit to avoid family strife.
Incapacitation or Incompetence
When a property dispute occurs, Texas law determines what happens when one owner loses their ability to make decisions.
Suppose you inherit a home with your sister. She becomes incapacitated while hospitalized. In that case, a court may appoint a guardian or conservator to represent her best interest in any property disputes.
You may disagree that a guardian’s decisions about the jointly owned property reflect your sister’s best interest. Talking with an attorney can help you act for the best outcome in this type of co-owner dispute. You may use mediation or need to file a lawsuit to represent your legal rights according to Texas property law.
Tax Disagreements
Selling your home for a price exceeding the original amount can impose taxes on any capital gains you receive. Considering the taxes, other owners may disagree that selling would result in enough profit. Disputes could also occur over who should pay the taxes.
Unexpected tax bills can lead to financial strain, leading you to reconsider whether it still makes sense to continue joint ownership of the property. At this point, you may need to hire an attorney to help you work out an agreement for one owner to buy another out.
Partition Lawsuits: Property Joint Ownership Disputes
The ownership of a shared asset can lead to conflicting ideas. Depending on your stake, you and those holding other portions may clash over numerous matters.
Common joint ownership disputes occur when the owners involved disagree over these common property disputes:
- Taxes: How much or how little should each owner pay?
- Future goals or decisions: Will you all refinance at some point? When and how?
- A real estate contract and whether owners should accept a particular offer
- Selling or renting the property: Should you sell or rent? If renting, should you hire a management company?
- Improvements on the property: Hire someone to make improvements or DIY? Who should do the work?
- Maintenance: Should you involve a maintenance person or DIY?
- Living situations: Who lives in the home and do they own less because of their living arrangements?
- Do you have a right-of-survivorship clause with each other?
- Other problems, such as one owner’s debt or obligations infringing on your right to keep the home
When the terms of a co-ownership agreement go awry, and tensions rise due to joint property disputes, it can be difficult for all parties involved to know how best to move forward. Confrontation often leads the parties into an impasse – unable to find common ground and resolution.
At this stage, co-owners can take advantage of a property lawyer’s expertise for professional advice.
Partition Lawsuits in Texas
A property owner can often force a sale using a partition action lawsuit. A judge can order a forced property sale.
The court will assess the dispute over joint property and distribute its proceeds equitably between all parties. If each party owns different percentages, the court may distribute according to the amounts each party holds.
If you’re concerned about selling or managing jointly owned property, hire a qualified real estate attorney in Texas to help you work out agreements so your family issues don’t go to court.
Other Ways a Real Estate Lawyer Can Help with Real Property Matters
Real estate lawyers can also advise you on the following matters:
- Create real estate contracts
- Help with title searches concerning your potential heirship, including seeing if the deed is a transfer on death deed which would prevail over a will
- Help you draw up a demand letter to the other heir tenants
- Advise you on selling property in poor repair, with mold issues, or in an undesirable locale
- Draw up agreements between heirs to avoid costly disagreements
- Help you through mediation to solve an inheritance property dispute
- Help joint owners with a property dispute about whether to sell
- Draw up a family trust for your property
- Negotiate mortgage payment struggles so that a bank doesn’t foreclose
- Help avoid or remove tax or mechanic liens
- Initiate short sales, forbearance deals, cash for keys when financial struggles appear
Managing or selling a jointly-owned property without the help of a legal professional can involve issues you may not fully comprehend. By consulting with an experienced real estate attorney, you can ensure that everyone involved is treated fairly and in accordance with Texas law.
If your family can’t resolve a property dispute, you may choose to involve the court. During this process, a judge will decide your property dispute based on what is fair for all parties involved.
Your lawyer can explain how this type of real estate lawsuit works and provide guidance. However, taking a matter to court can be expensive and take a long time to resolve.
Find Answers With Experienced Texas Real Estate Lawyers
At The Jarrett Law Firm, we specialize in the complicated legalities and intricate relationships of joint property ownership. We are devoted to understanding your needs and getting the desired results for you and your loved ones.
Get in touch today for an appointment, and see how we can help you resolve your property disputes!