Can You Sell Your Undivided Interest in Land

Texas Landowner Partition Attorney Philip Hundl answers a question about selling an undivided interest in land. If you’re thinking about selling your undivided interest, please talk with a lawyer who is experienced in the Texas process for dividing undivided interests in land. Call or text 800-266-4870 for an appointment with Mr. Hund. Appointments can be in person, online or by phone.

Can You Sell Your Undivided Interest in Land?

Summary of the Can You Sell an Undivided Interest Video

Brief Summary of the Video

Yes, it is possible to sell an undivided interest in land, but it is usually discounted by the buyer due to the possibility of having to go through a partition process and the difficulty in finding financing from lenders who don’t like lending money on an undivided interest as collateral. Partition proceedings can be lengthy and costly, but a court may order the property sold if it is unable to be divided in kind among the co-owners. The first step in resolving an undivided interest is to attempt to partition by agreement, but if that’s not possible, a petition for partition may need to be filed with a lawyer familiar with partition proceedings.

How Might You Get an Undivided Interest?

Can you sell your undivided interest in land? Hi, I’m Philip Hundl and I’m an attorney. My law practice focuses on representing landowners in condemnation proceedings and, and partition proceedings. 

So let’s talk about partition proceedings. You may have acquired an undivided interest by gift or inheritance, and you’re asking yourself, what do I do now with this undivided interest.

One of the other co-tenants may be using the property or the property may be leased, and you’re wondering what to do. 

What’s the Texas Partition Process?

You can seek partition or you can attempt to partition by agreement. That’s always really the first option I always recommend if there can be an agreement on how to partition.

If not, then you’re going to need to seek court assistance by filing a petition for partition with an attorney who is familiar with partition proceedings. In my experience, if it’s a significant amount of property, the court’s going to say that it can be partitioned in kind or divided up amongst the co-owners. Each co-owner or each group of co-owners, if they want to stay together, will get a particular piece of land.

I go into that partition process in a series of videos. So please take a look at those videos. They are helpful in explaining the whole process and all the steps.

The partition proceeding can be lengthy, and it can be expensive. It just depends on how far through the process a person has to go to to get a partition accomplished. 

Partition by Sale and Selling an Undivided Interest

The only time a court will in my experience, order the property sold is if it’s a house on a lot and there’s multiple owners. There’s really no way to divide it up. So it would be ordered sold the money divided, and that’s a partition by sale

Another option could be selling your undivided interest. You should take into account that the undivided interest that you own is probably going to be discounted by the buyer. Why? Because if you sell your undivided interest to the buyer, then they inherit your problem of having to go through the partition process. That can be lengthy and costly for them. So they’re going to be asking for a discount, and a lot of that just depends on the property and the situation. 

Another factor for the buyer is it’s going to be extremely difficult for that buyer to find financing. Because lenders don’t like lending money on collateral that’s an undivided interest.

So all those things need to be taken into consideration. But yes, I have had clients sell their undivided interest. It’s something we will work with clients on.

So hopefully this is helpful if this is a situation you face. Good luck.

Get the Help You Need to Navigate Through the Partition Process

The Texas partition process is complex, lengthy and costly. You need an experienced attorney to guide you through the process and protect your interests. Call 800-266-4870 for an appointment with Attorney Philip Hundl. You can meet with Mr. Hundl by phone, online or in person at one of our offices.

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