Who owns the property? Family Home with Deceased Owners

Question

Hello, My husband and I are New to BP and Real Estate Investing.  We are interested in purchasing 2-4 unit homes in the Minneapolis area.  We recently discovered there is a home within our family that may not have a true owner. (best way I can put it)

A family member with declining health has lived in this all of his life and has been the only resident since his mother passed away over 30 years ago.  The property was never in her name but in her parent's name who passed long before her and they are still showing on the record as the owners.  There is no mortgage and he pays the taxes.

Questions:  The current resident has children. Would they have any rights to the property if he were to pass away or has to leave the home because of health issues?   While he still has a sound mind, is there anything he can do to take ownership of the property in order to sell it?  We would like to take on this property eventually but don't know how to approach it.  Any advice would be appreciated.  Thanks!

Tim Joyce · Answer

I'll chime in to confirm the bare bones of what @Tim Swierczek said, though I'll caution that issues like this can get messy. Your situation sounds an awful lot like one of the law school exam questions a student might face (trust me: just escaped that insanity last May).

Based on what you've said, we don't have enough information to determine if any other family members have a claim against the property. They could live states away and rarely have spoken to the former owners but still have a claim that can beat a prospective buyer. It would be a shame to get too far down the rabbit hole without chatting this out with a probate attorney (it's not my focus, sorry).

Tim's right that the court can "quiet title" to the property if need be, but if memory serves that involves a formal legal proceeding that actively seeks out folks that have interests in the property, to make sure the right people have first shot. You might still get a chance to purchase from the correct owners, but you won't know who they are without some sort of proceeding. Just so you're prepared. (If you want to be connected with a probate attorney I know, send a DM.)

Tim Swierczek · Answer

@Markesha Smith There is always an owner to the home it’s just in this case you don’t know who that is.   When this guy‘s parents passed away ownership passed through the estate to the heirs. If there were no heirs the court decides who that would be. The owner did not record their interest but they still have interest in the property. It’s likely the owner is the person that is living in the property now unless that person was given “a life estate” in which case someone else owns it but this person is allowed to live in it until they die. That’s highly unlikely but it is possible.  When the current owner dies their interest will pass to their errors and less there are none in the courts will decide who owns it.

I’d recommend you approach the personal who lives  in the property to buy it.  The title company will figure out the rest.

John Woodrich · Answer

I agree with both Tim's - you will have to talk to a probate attorney.  If you are located close by I would go to the recorder's office and see if you can find any recently filed documents or trace back to the original owner.  A title search will also help discover who is the owner and you can start from there.

Figure if the owner passed away there will likely need to be a probate hearing, all family members will have to receive notice, and it may take a while to consumate this transaction.  For all you know the person living in the house has 3 siblings located all over and during probate they may all own an interest in the property.

In any instance this will take some time, there will be legal fees involved, and you will want to make absolute sure you are acquiring marketable title.  A quiet title action would probably take a minimum of 3 months, probate probably a minimum 2 months, etc...  Make sure it is worth it before putting in the time and fees to chase this down.

Markesha Smith · Answer

@Tim Joyce Thanks for the response!  We see now that we need to check with him to see if any distant relative are out there who may have an interest in the property.

Markesha Smith · Answer

@Tim Swierczek Thanks!  That's very helpful.

Who owns the property? Family Home with Deceased Owners

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