How to Sell a House with Multiple Heirs in Tennessee
Brad:
So what would you say is probably the most complicated inheritance deal that you guys have ever closed at your company?
Triumph Over Complexity: Navigating a Difficult Inherited Property Deal
The property in question was a house in need of significant repairs, located in the downtown Nashville area. The individual who contacted us had been struggling with other companies; they would initiate the process but then it would fall apart due to its complexities.
After inheriting the house, he took the lead in trying to sell it. However, it turned out that when he inherited the house, probate was not done, which resulted in 15 other heirs, bringing the total to 16.
We had to trace the family trees, contact funeral homes, read through obituaries, and reach out to multiple hospitals to obtain contact information for every individual involved. Additionally, we needed affidavits of heirship from friends who could verify the relationships. Moreover, many of the heirs had outstanding judgments, which complicated matters further. This required us to navigate challenging conversations about the distribution of funds—determining who was owed what and how those amounts were decided.
These discussions can be quite difficult. There are laws governing these matters, so we had to ensure we adhered to them. Our goal was to communicate clearly with everyone involved, ensuring they received the same information at the same time to prevent any misunderstandings or miscommunications. It took many months to track down each person, confirm relationships, and clarify details, but ultimately, we were able to close the deal successfully.
Raymond had been trying for years to sell a house that was ultimately destined for demolition. It wasn’t a property that could be easily renovated, but he saw the potential in it. Raymond envisioned multiple homes being built on the lot, providing opportunities for several families. He worked hard to communicate this vision to the community, helping them understand the benefits of the new development. He recognized that for many, this house represented their childhood and held significant emotional value, as it was part of their family legacy. The process was challenging for the team, as it involved coordinating efforts and communicating effectively with various people.
A notable aspect of the experience was reconnecting family members who hadn’t spoken in years, some of whom were unaware others were still alive. This journey was both rewarding and difficult, requiring persistence and extensive communication, but in the end, it brought satisfaction to everyone involved.
Brad:
Those situations can be really challenging. I’ve experienced a few myself.
The Complexity of Multiple Heirs
A while back, we encountered a case where the seller decided to give up. There were 31 identified heirs, and the seller thought, “It’s not worth it.” He said he would just live in the house until he passed away and let the county take care of it afterward.
This kind of scenario is not uncommon. You mentioned that this happened near downtown Nashville, and we see similar situations in Atlanta, where I’m from. There are many old houses in Atlanta that have been passed down through generations without going through probate. Untangling these cases can be quite complicated. There are specific legal steps involved, which is why we consult with experienced attorneys.
In the Nashville area, I’ve worked with a probate attorney named April Jackson, and we have an informative resource page for probate in Nashville. It’s essential to follow the legal steps because they are designed to protect the family and ensure that everyone receives their inheritance fairly. It can be difficult for some people to accept, especially when they realize that the money must be distributed among various relatives, like a second cousin named Johnny. Unfortunately, that’s the law.
The Perils of Omission: Uncovering Hidden Heirs
We had a deal two years ago where we reached the finish line the day before closing. The family had reached out to us for help with the probate process, and we assisted them by taking them to the probate court. We even helped secure bail money for one of the heirs who had been arrested for a minor offense; we needed her signature to proceed. Fortunately, we managed to get that worked out.
I connected her with my probate attorney, who agreed to handle the case pro bono upfront, with the understanding that he would be reimbursed at closing. This is something we frequently do. Everything was progressing smoothly until we were just one day away from closing. Early in the process, we had asked an heir whether the deceased had any children, and she assured us that there were none and that the individual was single at the time of death. This information was critical to the deal, so we took her word for it.
The probate attorney and my closing attorney also relied on her statement. Then, at the last minute, the title underwriter requested a copy of the deceased’s obituary to maintain on file for the closing. I assured them it would be no problem to find it. However, after searching online without success, we called the local funeral home. They confirmed they had a copy of the obituary, as the woman had passed away in 2008, which was quite some time ago. When we received the obituary, we discovered that she was actually survived by four children.
I called the lady we had been dealing with through the administrator. I told her, “You informed me that she didn’t have any kids, and now I can’t close tomorrow because you lied to me. You knew she had children, and you didn’t disclose that.”
She had completely misrepresented the situation; her aunt was one of the heirs and had lived with them, so she was well aware of her aunt’s existence. She intentionally omitted this information because she knew it would affect the distribution of the money among the additional heirs. Ultimately, this came back to haunt her, and I couldn’t finalize the deal.
We needed to track down all the heirs, and one of them was deceased, which complicated matters significantly. Then she got upset with me and publicly criticized me online, claiming I didn’t close the deal. I reminded her, “You lied to me, and now we are facing these issues.”
Later, she ended up selling the house to another investor without informing him of the complications. She also failed to pay my probate attorney, who was owed $4,000 for his work. The ironic part is that when that investor went to sell the house, he had to deal with the unresolved title issues that his attorney had overlooked. I had invested a significant amount of my own money into the deal, even going out of my way to help them, including taking her to probate court because she didn’t have a car.
The moral of the story is that we need to ask the right questions upfront. These issues are crucial, and if we don’t resolve them early on, they will resurface later. We must adhere to the laws and rules to avoid these complications.
It’s okay if things are a little messy or if there are some issues to uncover. We want people to feel comfortable discussing this. It can be a burden and a pain point, and it’s certainly a touchy subject.
However, I don’t want my family to be aware of these matters. There’s no judgment here; we simply need to address these issues because, legally, we have to be aware of them. If we don’t address them, they will come to light, as they are public information or have gone through some aspect of the legal system. When we come back to these matters, it can get quite complicated, but at the end of the day, we know that it’s always better to address everything upfront.
Let’s talk about it openly so we can identify what we’re working with and find the best and fastest solution to get the deal done.