circumstances. For instance, if you or your sibling(s) cannot qualify for a mortgage, the one who does not wish to keep the house can finance the transaction. This will mean you will not need a home loan or incur out of pocket expenses. For a private agreement, you make a promissory note to your sibling for his or her share of the value as assessed by the appraisal. The amount due to him or her can be paid in monthly installments along with interest (very similar to a mortgage payment to a bank). With this arrangement, you can buy out the property over time. If necessary, you may also make a deed of trust that grants the power to foreclose if someone defaults on payments. Again, it is wise to seek legal counsel and have them draw up the documents. This topic of selling the property is covered in more detail in Chapter 7.
Renting the property could be the solution if none of the siblings are interested in keeping the property personally, but as a group the heirs see benefit in the house as rental or investment property. If you have a friendly relationship and can get along for a long period as co-owners of the property, you can rent out the
property and take your share out of the proceeds monthly. If one of the siblings manages the collection of rental payments and arranges maintenance for the property, the effort can be rewarded by the others with an increased share. Whatever the terms are, though, it is advisable to record them in a written agreement to forestall future disagreements and misunderstandings.
Many times, though, the best arrangement is still to sell the
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