Can I Buy Out My Sibling Instead of Selling an Inherited House in New York?

Man signing documents with tiny home on top | Gill & Kadochnikov P.C.
|

Two siblings inherit a house. One wants cash and wants the property sold. The other wants to keep the home.

Does the disagreement automatically mean the house must be sold?

Not necessarily.

In New York, siblings can often resolve an inherited property dispute through a buyout, in which one co-owner purchases the other’s interest. And when the property qualifies as “heirs property” under New York’s Uniform Partition of Heirs Property Act, RPAPL § 993, the law may provide a specific court-supervised opportunity for a co-owner to buy the interest of a sibling who is seeking a partition sale.

The important point is that not every inherited property dispute follows the same rules.

Can Siblings Simply Agree to a Buyout?

Yes.

Co-owners do not have to wait for a court to order a sale. If the siblings can agree on a price and terms, one sibling can purchase the other’s ownership interest as part of a negotiated resolution.

A voluntary buyout typically requires the parties to address several practical issues, including:

  • The value of the property
  • The percentage owned by each sibling
  • Any mortgage or other liens
  • Whether one owner claims credits for taxes, mortgage payments, repairs, or other expenses
  • How and when the purchase price will be paid
  • The documents needed to transfer the departing owner’s interest

A negotiated buyout can be reached before a partition action is filed or while litigation is pending.

What If One Sibling Has Already Filed a Partition Action?

A partition lawsuit does not necessarily eliminate the possibility of a buyout.

Under New York’s general partition law, a co-owner may seek partition of jointly owned property and, when physical division is impractical, may seek a sale. But parties frequently resolve co-ownership disputes by agreement before the case reaches a court-ordered sale.

For certain inherited properties, however, New York law goes further.

New York’s Heirs Property Law Can Create a Specific Buyout Right

RPAPL § 993 applies to qualifying “heirs property.” The definition is technical, but generally, the property must be held as tenants in common, used for residential or agricultural purposes, lack a binding partition agreement among all co-tenants, and satisfy statutory family-ownership requirements.

Importantly, not every house inherited by siblings automatically qualifies.

If the court determines that the property is heirs property, RPAPL § 993 changes the ordinary partition process. Among other things, the statute requires a settlement conference and provides procedures for valuation and a potential co-tenant buyout.

The Appellate Division recently emphasized the importance of these protections in Williams v. Williams, 250 A.D.3d 592 (1st Dep’t 2026). There, a brother and sister acquired interests in a Manhattan cooperative apartment from their mother. The First Department held that the Heirs Property Act applied and sent the case back so the statutory procedures could be followed.

How Does the Court-Supervised Buyout Work?

When heirs property is involved and a co-tenant requests partition by sale, RPAPL § 993 gives the other qualifying co-tenants an opportunity to purchase the interests of those seeking the sale.

The process begins with valuation.

The co-tenants may agree on the property’s value or on a method for determining it. If they do not, the court generally orders an appraisal by a disinterested New York-licensed real estate appraiser and ultimately determines the property’s fair market value.

After the court sends notice of the determination of value, a co-tenant who did not request partition by sale generally has 45 days to notify the court that he or she elects to purchase the interests that are subject to the statutory buyout.

The purchase price is based on the court-determined value of the entire property multiplied by the percentage interest being purchased.

For example, if a qualifying inherited property is valued at $800,000 and one sibling owns a 50% interest that is subject to purchase, the statutory starting point for that interest would be $400,000.

That simple example does not account for liens, separate accounting claims, closing issues, or other facts that may affect the economics of an actual resolution.

What Happens If More Than One Co-Owner Wants to Buy?

RPAPL § 993 also contains rules for allocating the right to purchase when multiple eligible co-tenants elect to buy.

The statute gives certain priority to co-tenants who acquired their interests from a relative, including additional priority in some circumstances for a co-tenant who resides at the property.

These rules are designed to give family co-owners a meaningful opportunity to preserve ownership before the property proceeds further through the partition process.

What if the Sibling Who Wants the House Cannot Complete the Buyout?

Wanting to keep the house and being able to finance the buyout are different issues.

A co-owner considering a buyout should evaluate financing early. That may involve cash, refinancing, a new mortgage, or another negotiated financing arrangement.

Under the statutory heirs-property procedure, deadlines matter. If the required purchase price is not timely paid, the partition action can proceed to the next statutory stage, which may ultimately include partition in kind or a sale.

Waiting until a sale is imminent can substantially reduce the available options.

Do Mortgage Payments or Other Contributions Affect the Buyout?

They can affect the overall dispute and settlement negotiations.

A sibling who paid more than his or her share of the mortgage, property taxes, or certain property expenses may have accounting claims that should be evaluated separately. Those issues can matter when the parties negotiate the economics of a voluntary buyout.

We recently discussed those accounting issues in If One Sibling Pays the Mortgage on an Inherited House in New York, Do They Get Reimbursed?

The key is to identify both the ownership percentage and any legitimate accounting issues before agreeing on a final number.

The Bottom Line

If you inherited a New York property with a sibling and want to keep it, a forced sale is not always the only possible outcome.

The parties may negotiate a voluntary buyout at any stage. And if the property qualifies as heirs property under RPAPL § 993, New York law may provide a structured, court-supervised opportunity for one co-owner to purchase the interest of another co-owner seeking a sale.

Because the heirs-property rules depend on how the title was acquired, how the property is held, how it is used, and who the co-owners are, determining whether RPAPL § 993 applies should be addressed early in a partition dispute.

This article is for general informational purposes only and does not constitute legal advice. Prior results do not guarantee a similar outcome. The application of New York partition law depends on the facts and circumstances of each matter.

Primary legal sources reviewed: RPAPL §§ 901 and 993; Williams v. Williams, 250 A.D.3d 592, 2026 NY Slip Op 03902 (1st Dep’t June 18, 2026).
Categories: