While heirs property ownership may have some advantages, such as preservation of family legacy and cohesion, shared benefit, and access and ties to the land, keeping land in the form of a clouded title can present notable disadvantages.

With each passing generation, the number of heirs increases, but the size of each person’s fractional interest decreases.

Vulnerability to Loss

PARTITION SALES. Any co-owner can bring a lawsuit to force a partition in kind (physical division of the property) or partition through the sale of the property as a way to get their share of the property or proceeds.

TAX SALES. If property taxes are not paid, the government can auction the property to cover the unpaid taxes. In some states, profits received beyond the tax amount are returned to the heirs. In other states, the government can keep the full profit from the auction sale.

ADVERSE POSSESSION. External parties can claim ownership of the property, even if they have not paid the co-owners for it, simply by showing possession (for example, by building a fence across or around your land) and using the land openly, continuously, and exclusively for a period of time. Adverse possession in Alabama is generally for 20 years.

Unclear Division Among Heirs

MAINTENANCE. Any repairs or routine maintenance on the property land or structures are the shared responsibility of all owners.

IMPROVEMENTS. Any improvements made to the land (planting trees, making agricultural improvements, or repairing or building a home) become the property of all heirs entitled to the land.

SIZE OF INTERESTS. With each passing generation that dies without a clear title, the number of heirs increases, but the size of each person’s fractional interest decreases. It becomes increasingly difficult to physically divide the land into equal pieces among the heirs or make a collective decision about the property. Physical division is nearly impossible if it is a home passed down as heirs property.

HEIR DISPUTES. Conflict can arise among heirs around decision-making, use of land, and division of assets or responsibilities, leading to rifts in family connections and ties.

Limitations in Aid and Assistance

Co-owners of heirs property often face restrictions on the kinds of financial support or assistance they can access.

FEDERAL AND STATE FUNDING. Government lenders and organizations usually require homeowners to have clear title to their home and land. The land may not be eligible for federal, state, or regional funding offered to landowners or homeowners. Many programs for home repair or improvement, mortgage, taxes, or foreclosure prevention also require a clear title. While the Federal Emergency Management Agency (FEMA) has begun recognizing inherited properties for emergency assistance, many other state and federal programs remain out of reach.

BORROWING SERVICE LOANS OR FUNDING. It is common to apply for a bank loan to purchase or make improvements to a property. Access to lender financing can be much harder for heirs property because the land cannot be used as collateral on a loan from a financial institution.

Restricted Use of Land

It is not uncommon for a single heir to lease the heirs property land, sell timber or other natural resources from the land, or engage in an informal agreement to allow another to use the land. When an heir does such things without the approval of all heirs or retains all profits for himself or herself, these actions can create deep family tensions. Further, in such instances of sale, harvesting, or leasing, the buyer or lessee often offers a lower purchase or lease price than if the title were clear. Ultimately, family wealth generation is limited.

LEASING. It is difficult to lease out the land for purposes of agriculture (crop cultivation, livestock farming), residences (short- or longterm rental housing), or recreation (campground, golf, or sporting).

BUYING THE LAND. If land is sold, many family members cannot afford to buyout other co-owners or outbid developers or real estate speculators to keep the land in the family.

HARVESTING. Most timber and solar- and wind-energy harvesting companies will purchase timber only from land with a clear title.

Many programs aimed at home repair or improvement, mortgage, taxes, or foreclosure prevention require a clear title.

Case Study

Joe lives by himself on 100 acres of heirs property that previously belonged to his grandfather. He pays the taxes and takes care of the land. Joe decided to have some of the timber on the land harvested to earn extra cash to help with the taxes and upkeep of the property. He contacted a timber consulting firm that agreed to evaluate the land and prepare the sale. However, when the timber buyer conducted a title search of the land, the company discovered that Joe’s name was not on the deed. Joe was a co-owner and would need the consent and signatures of the other thirteen heirs. However, Joe did not have contact information for many of his relatives who lived all over the country. Without a clear title, Joe cannot sell the timber by himself.

Joe’s case is an example of restricted land use. He cannot apply for many state and federal programs, such as the Farm Service Agency’s Conservation Reserve Program, that would pay him not to cut timber on his land.

Back to Heirs Property in Alabama

Portia Johnson, Extension Specialist, Assistant Professor, Human Sciences; Ryan Thomson, Assistant Professor, Rural Sociology; Adam Rabinowitz, Extension Specialist, Associate Professor, Agricultural Economics; and Katie Keown, Visiting Professor, Agriculture Law, all with Auburn University

Revised July 2024, Heirs Property in Alabama, HE-0852