One house, three siblings and three different ideas about what to do with it. This is the most common —and most delicate— scenario in inheritances involving a home. Here are the real options for selling an inherited house among siblings (or for one sibling to keep it), what each option costs and how to prevent the property from tearing the family apart.
Starting point: undivided ownership
When the estate is allocated, the house usually ends up in co-ownership: each sibling owns a percentage of the whole house, not specific rooms. No one can sell the entire house without the others, but neither can anyone be forced to remain in the co-ownership: the law always provides an exit.
Option 1: sell together (the one that distributes the most money)
Everyone signs the sale and the price is divided according to the percentages. This option maximizes the amount, because the market pays for the complete house. Keys to making it work: a price set with an objective valuation (not with each person’s sentimental figure), a single point of contact with the agency and written agreements about expenses and distribution.
Option 2: one sibling keeps it (termination of co-ownership)
One sibling buys the shares of the others by way of termination of co-ownership before a notary. For tax purposes this is more efficient than a sale between siblings: it is subject to AJD (around 1.5% in the Valencian Community) instead of ITP. It requires a proper appraisal of the house and that the sibling who keeps it has financing: banks offer specific mortgages for termination of co-ownership.
Option 3: sell only your share (the worst financially)
Selling your percentage to a third party (companies that buy undivided shares) is legal, but it is done at very large discounts, often half of the proportional value. It is the option of desperation, not of strategy.
Option 4: the judicial route (partition of jointly owned property)
If there is no agreement, any co-owner can ask the judge for partition; since a house is indivisible, it ends up at auction. Typical result: less money than an open-market sale, years of proceedings, legal costs and a broken family. Its real use is as leverage to sit down and negotiate: the option exists, and nobody wins with it.
What if a sibling lives in the house or refuses to sell?
Someone who uses the dwelling exclusively can be required to compensate the others, and someone who blocks the sale cannot prevent judicial partition. Before reaching that point, most conflicts are resolved with two tools: an impartial valuation that replaces opinions with data, and clear options on the table (I buy you out, you buy me out or we sell).
At Mayrasa we act as a neutral party in sibling sales: objective valuation based on real sales, the same information for all heirs and full sales management with a single point of contact. If you are in this situation, we help you decide with numbers, not with arguments.
Taxation of each exit, compared
Before choosing an option it’s worth knowing how each one is taxed, because the difference between a fair and an unfair split can be several thousand euros. These are the four exits and their indicative tax treatment in the Valencian Community:
| Option | How it is taxed | To bear in mind |
|---|---|---|
| Sell together to a third party | IRPF on the gain (value at inheritance → sale price) plus municipal capital gains tax for the period since the inheritance | Divided among all according to their quota |
| Termination of co-ownership (one keeps the house) | AJD, around 1.5%, instead of ITP on a sale | Only paid by the person who acquires the house; usually requires a mortgage |
| Sell only your share to a fund | IRPF on your proportional gain | Price at a heavy discount; the worst financially |
| Judicial partition (auction) | Same as a sale, calculated on the auction price | Legal costs are added and the auction result is usually below market |
These are indicative figures: the exact amount depends on the house value, the years that have passed and your personal situation, so it’s worth confirming with a tax advisor before signing.
How the money is divided and who assumes the expenses
While the house is unsold, it continues to generate expenses that someone must advance. Putting this in writing from the start avoids most disputes:
- Running costs: community fees, IBI, rubbish tax, utilities and insurance are shared according to each sibling’s quota.
- Who advances payments: the usual practice is that one person pays and is compensated in the final distribution; record each payment with its receipt.
- Preparation for sale: clearing out, cleaning and small repairs are also shared, and they are usually more than recovered in the sale price.
- At closing: the municipal capital gains and outstanding expenses are deducted from the price, and the remainder is divided by percentages.
- Community certificate: request from the administrator a certificate of being up to date; the house is liable for fees for the current year and the three previous ones.
A single point of contact: the key to not breaking the family
When each sibling speaks separately with the agency, with buyers or with the notary, contradictory versions appear and distrust grows. Designating a single person —a sibling or the estate agency itself— to centralize viewings, offers and decisions turns a multi-party negotiation into an orderly process. The other element that lowers tension is replacing opinions with data: an objective valuation based on real local sales leaves behind the “it’s worth more to me” argument and puts everyone discussing the same figure.
Errors that break the family (and the transaction)
- Setting the price for sentimental reasons instead of on actual closed sales in the same area.
- Everyone negotiating at once with buyers and the agency, sending contradictory messages that kill offers.
- Confusing termination of co-ownership with a sale and paying ITP when AJD applied, which is much cheaper.
- Selling the share to an undivided-ownership fund at the first disagreement, losing half the value.
- Threatening with the courts before attempting an impartial valuation: the judicial route leaves everyone with less money.
Frequently asked questions
Can one sibling force the others to sell?
They cannot force a free sale, but they can ask the judge for partition of the jointly owned property, and no one is obliged to remain in co-ownership. Because the house is indivisible, that route ends in an auction, with less money for everyone. That is why the judicial threat mostly serves as a push to negotiate.
Is termination of co-ownership better than a sale between siblings?
Almost always termination of co-ownership, because it is taxed by AJD (around 1.5% in the Valencian Community) instead of by ITP. It requires a proper appraisal of the house and that the person who keeps it has financing; there are mortgages specific to this case.
What if one sibling lives in the house and pays nothing?
Someone who uses the dwelling exclusively can be required to compensate the other co-owners financially for that use. They do not lose their share by living there, but neither can they indefinitely block the others’ exit.
Can you sell if one of the heirs lives abroad?
Yes. They can grant a power of attorney in their country —with The Hague apostille and sworn translation— so that someone signs on their behalf, both for the distribution and for the sale. If they are also not a tax resident in Spain, the buyer will withhold 3% of the price on account of their taxes.
