Disagreement during a succession for the valuation of a house: how to deal with it ?

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Inheriting real estate can be a complex and emotionally charged process. One of the most difficult aspects of this process is the valuation of the house, a crucial step that can lead to disagreements between heirs. Indeed, the value assigned to the house is decisive for the equitable distribution of the estate, hence the importance of an accurate and fair evaluation.

However, it is not uncommon for the parties involved to have different views regarding the value of the house, thus creating potential tensions and disputes. These tensions can be all the more difficult to manage as they occur in a context of mourning, often already difficult to live through.

In this context, our article aims to guide you through this delicate issue that is the disagreement over the valuation of a house in case of inheritance.

Understanding the basics of real estate succession and house valuation 

Real estate succession is a process that takes place following the death of a person, to transfer his or her real estate assets to his or her heirs. This transfer is carried out according to the directives provided by law, or in accordance with a will, if the deceased has left one.

In the context of a succession, the valuation of the house (or any other real estate property that is part of the deceased's estate) is a key step. This valuation allows to determine the value of the property at a given time, which is essential for an equitable distribution of the estate among the heirs. This evaluation must take into account numerous factors such as size, location, condition of the property, market trends, etc.

The valuation of the house can be carried out by a real estate expert, a notary, or a real estate agency. It is preferable to use a professional to ensure the objectivity and accuracy of the evaluation, and to ensure that all parties involved accept the estimated price.

However, there may be disagreements on the valuation of the house in the context of a succession. The causes of these disputes can vary. For example, an heir may estimate that the value of the house has been underestimated or overestimated. Or, there may be disagreements on the evaluation method used, some preferring an approach based on market prices, while others favor an approach based on the characteristics of the property.

Understanding these basics is essential to navigate through the succession process and to effectively manage any disagreement that may arise during the house valuation.

The consequences of a disagreement on the valuation of a house in case of succession 

A disagreement about the valuation of a house in case of succession can have many consequences, affecting both the succession process itself and the relationships between the heirs.

Legal Complications 

A disagreement over the valuation can lead to a legal deadlock, significantly slowing down the succession process. The opposing parties may choose to take the matter to court, which can lead to long and costly procedures.

Impact on Family Relationships 

Financial disputes, especially those related to succession, can create tensions between heirs, or even lead to a break in family ties. In some cases, the discord can last for years, making any future reconciliation difficult.

Additional Costs

A disagreement on the valuation can lead to additional costs. These costs may include lawyer's fees, court fees, or the cost of a new evaluation by another professional. These additional expenses reduce the net value of the estate, leaving less assets to share among the heirs.

Delays in the distribution of the estate 

A prolonged dispute can delay the distribution of the estate. During this time, the heirs may find themselves unable to fully enjoy their inheritance. In addition, the maintenance costs of the house (such as insurance, property taxes, routine maintenance) continue to accumulate, which can further decrease the value of the estate.

Thus, it is essential to approach any divergence of opinion regarding the valuation of the house with caution and to seek to resolve the divergence as quickly as possible to minimize its negative impacts.

How to avoid a disagreement on the valuation of the house during a succession? 

Preventing a disagreement on the valuation of a house during a succession is not only possible, but also recommended in order to proceed with a harmonious and fair transfer of wealth. Here are some suggestions to avoid such oppositions:

Hire an independent real estate expert

Using an independent professional to estimate the value of the house can help ensure an objective and accurate evaluation. This can reassure all heirs that the evaluation is fair and unbiased.

Choose an expert agreed upon by all parties 

For the valuation to be accepted by all, it may be helpful for all heirs to participate in the selection of the real estate expert and agree on the choice of the latter.

Clarify the estimation method

Before starting the valuation process, it is important to discuss and agree on the valuation method that will be used. This can prevent misunderstandings and later disputes.

Promote communication and transparency

Open and honest communication between all heirs can help prevent misunderstandings and create a sense of mutual trust. It is crucial that each heir is informed of each step of the valuation process and has the opportunity to ask questions or express concerns.

Use mediation in case of potential conflict

If a disagreement seems imminent, it may be beneficial to use a mediator. A professional mediator can help facilitate communication between parties and find a solution acceptable to all.

By following these recommendations, heirs can avoid many oppositions and conflicts related to the valuation of the house in the context of a succession.

How to resolve a disagreement on the valuation of a house in case of succession?

Despite the best prevention, disagreements on the valuation of a house in case of succession can still occur. Therefore, it is essential to know the different options for resolving these conflicts. Here are some of the possible solutions:

Negotiation between parties

In many cases, discord can be resolved by a simple discussion among the heirs. Each can express their point of view and a compromise can be found. However, this requires goodwill from all parties involved.

Mediation or Arbitration

If direct negotiation does not resolve the issue, mediation or arbitration can be a viable option. In these cases, an impartial third party helps the parties find a mutually acceptable solution. The advantage of this approach is that it is usually less expensive and faster than court proceedings.

Refer to a second expert

If discord persists despite mediation, another expert (notary or real estate agency) can be consulted for a new evaluation. This can help to ease tensions if some heirs feel that the initial estimation was inaccurate.

Judicial Sharing

When no satisfactory amicable solution can be found, it is possible to invoke judicial sharing in order to put an end to the successor's undivided ownership. An heir can seize the high court (TGI) of the place of opening of the succession. The judge will then be able to take note of the action for sharing and the claims of the different parties who are responsible for keeping the heirs in undivision. The court may order either the licitation of the goods or the sharing of the goods to avoid a public auction sale.

Each situation is unique and will require a tailor-made solution. The important thing is to maintain open communication and to show respect and understanding throughout the process.

Winter real estate advises you to estimate your real estate in Nice

Do you want more advice on real estate and especially to know the trends of the Nice market and to estimate your house at the right price in the context of a succession, in order to avoid any disagreement? Don't hesitate to come to our real estate agency in Nice Gambetta or to directly contact one of our advisors by phone!