It depends on how the property is owned.

1. Living Trust: If the home is held in a trust, the successor trustee usually has the authority to sell the property according to the trust’s instructions without requiring unanimous approval from all beneficiaries.
2. Probate Estate: If the home is in probate, the court appoints an executor or administrator to manage the estate. In many California cases, the executor can sell the property under the Independent Administration of Estates Act (IAEA), while beneficiaries are notified of the sale.
3. Direct Ownership by Heirs: If title has already transferred to multiple siblings as co-owners, all owners must generally agree and sign the listing and closing documents before the home can be sold.

California provides important tax benefits for inherited property.

1. Stepped-Up Tax Basis: The home’s value is adjusted to its fair market value on the date of the owner’s death. If the property is sold soon afterward for a similar price, heirs often owe little or no capital gains tax.
2. Proposition 19: If an heir moves into the inherited home as their primary residence within one year and meets the legal requirements, they may qualify to retain part or all of the parent’s lower property tax assessment, subject to Proposition 19 rules.

There are several ways to resolve the situation.

1. Sibling Buyout: One sibling purchases the others’ ownership interests.
2. Keep Home Together: Create a written agreement outlining ownership shares, rental income, expenses, and maintenance responsibilities.
3. Partition Action: If no agreement can be reached, any co-owner may ask the court to order the sale of the property. This legal process can take 6 to 18 months and usually involves additional legal expenses.

The loan must still be addressed after the owner’s death.

Continue making mortgage payments until the property is sold or refinanced.

Use the sale proceeds to pay off the remaining loan balance. Reverse Mortgage: The loan generally becomes due after the owner’s death. Heirs may refinance, sell the home, or, in some cases, purchase the property for 95% of its appraised value, subject to the lender’s requirements and applicable federal rules.