Can Majority Rule in Selling Inherited Property?

 Any legal consultant will agree that inheriting a property can be a very sensitive issue. A deceased person will often leave a share of an estate to multiple heirs, which can only create a burden. Regardless of whether they inherit a vast empire or a modest home, the beneficiaries must decide what to do with the property -- live in it, put it up for rent, or sell it. Disputes could arise amongst family members, particularly if the property holds a sentimental value to some beneficiaries but not to others.

Every local court in the UAE handles property disputes differently, but in most cases, the majority does not rule. If beneficiaries do not arrive at a common conclusion, it is up to the courts to decide whether one party has the legal grounds to force a buyout or a sale. As such, it is highly recommended to include an estate administrator in a Will or someone who will be responsible for selling the property and equally distribute the net proceeds among the beneficiaries. It means no one will own the property; instead, they will receive a cash sum equivalent to their share. It’s the best way for loved ones to avoid costly and time-consuming real estate disputes.

Solutions to Co-ownership Conflicts

If a dead loved one entrusted property to several individuals, they would be considered co-owners as per inheritance law. When it comes to a joint property, all beneficiaries have equal ownership rights, but individual shares are not always defined with separate boundaries. This is the foremost reason for feuds and disagreements amongst relatives. Each beneficiary might want to control the property differently. It would put non-residents in a vulnerable position as they are not physically present to protect their interests. It would be a journey filled with tedious legalities.

If one of the owners want to sell, but the other co-owners don’t, a lawsuit for ‘partition’ can be filed. It refers to physically dividing the property between beneficiaries. However, the partition can only work well for some properties, such as farmland acreage. If the property in question is a residential home or commercial building and can’t be partitioned, one of the parties can request the courts to force a sale. The net sale proceeds will be divided among the beneficiaries equally or according to their home percentage ownership. The courts can order partition on applying a single beneficiary, even if the majority doesn’t want to sell.  

A co-owner who wishes to keep the property but is on the receiving end of the partition is a good option to buy the other co-owners out. In legal terms, ‘partition by appraisal.’ This arrangement demands that you have the money to buy out the other co-owners of their percentage ownership. In this case, an appraiser should be appointed to determine a fair price for the property and top law firms to file the legal paperwork. If all parties couldn’t agree on a buyout, the courts may proceed with a third-party sale.

Disputes on an inherited estate in the UAE could take a year or more to resolve without the help of experienced property attorneys. If you have questions concerning your rights involving co-owned real estate, start looking for a ‘law firm near me’ or book an appointment with Motei & Associates! Call them at +971 4 435 5959.