What happens if a community of heirs cannot agree on a property sale?
What is a community of heirs?
Joint ownership (Gesamthandsgemeinschaft) under Section 2032 BGB
When several people inherit, a community of heirs arises automatically. Legally a joint-ownership community — which means: none of the heirs can dispose of the property alone. Every decision requires unanimity. Sale, letting, renovation — nothing happens without everyone's consent.
That sounds like good protection. In practice it is a blocking mechanism. A single heir who does not want to sell (or cannot, or will not, because they want to get back at the others) can paralyse the entire process.
Are you stuck in a community of heirs?
Discuss without obligationOptions: sale, buy-out or auction
Joint sale
The best solution in almost all cases. All heirs agree on a sale, share the proceeds proportionally and dissolve the community of heirs. In Dresden such a sale takes three to six months — plus the time for the prior agreement.
Buying out a co-heir
One heir takes over the property and pays out the others. Requirement: sufficient financial strength or a bank's willingness to finance the purchase. The takeover price is based on a neutral valuation — not on what an individual heir „considers appropriate“.
Letting
The community of heirs keeps the property and lets it. Income is shared proportionally. Sounds good in theory. In practice: who handles the management? Who pays for repairs? Who decides when tenants change? Without clear rules this ends in constant conflict.
Partition auction (Teilungsversteigerung)
The last resort. Any co-heir can apply for it at the local court — unilaterally, without the others' consent. The result: the property is auctioned, the proceeds distributed proportionally. The problem: in Dresden auction prices are 20 to 30 percent below market value. Everyone loses.
Unanimity principle: what to do in a deadlock?
The most common scenario: two of three heirs want to sell, one does not. What now?
Step 1: Seek a conversation
Sounds trivial, but is often skipped. The blocking heir often has an understandable reason — emotional attachment, uncertainty about the value, fear of being disadvantaged. An open conversation with concrete figures can work wonders.
Step 2: Neutral valuation
If the dispute is about value, a market-value appraisal creates clarity. Cost: 1,500 to 3,000 euros — divided by the number of heirs. The best investment you can make.
Step 3: Mediator or lawyer
A mediator can mediate between the parties. A lawyer specialising in inheritance law can set out the legal options. Both cost money — but considerably less than a partition auction.
Step 4: Threaten a partition auction
Sometimes the threat alone is enough to bring the blocking heir to the negotiating table. The prospect of losing 20–30 percent below market value is motivating.
Step 5: Apply for a partition auction
When nothing else helps. Any co-heir can apply for it unilaterally. The procedure takes six to twelve months.
Partition auction: the last resort
I almost always advise against it. The numbers speak for themselves:
The auction in numbers
Valuation and price-finding in case of disagreement
The dispute over value is the most common cause of deadlock. Therefore:
Commission an expert together
A publicly appointed and sworn expert — commissioned jointly. This creates acceptance among all parties.
Agree in writing in advance
Agree in writing in advance that everyone accepts the result. This prevents the losing side from questioning the appraisal afterwards.
Use the appraisal as a basis for negotiation
Use the appraisal as the basis for all further negotiations — whether sale, buy-out or letting.
Save yourself this cost for now: get a first, no-obligation estimate of the property's value — free of charge and without commitment for all heirs.
Free value estimateTax aspects in a community of heirs
Inheritance tax
Each heir taxes their share individually. The allowances depend on the degree of kinship (children: 400,000 euros, siblings: 20,000 euros).
To the inheritance tax calculatorSpeculation tax
The deceased's holding period is credited. If the deceased bought the property more than 10 years ago, the sale is tax-free.
To the speculation tax calculatorIncome from letting
Distributed proportionally among the heirs and taxed individually.
Our role: neutral intermediary and market expert
In communities of heirs, neutrality is decisive. When one heir engages the agent, the others become distrustful. That is why we work transparently for all parties:
