WHAT ARE PROPERTIES THAT HAVE PARTIAL INTEREST OWNERS?

In properties acquired through legal inheritance, ownership is divided into separate, percentage-based interests, rather than a single unified ownership. This might mean having two partners each owning 50%, four partners each with 25%, and so on. However, many people are reluctant to own a fraction of a property, especially since it's not a liquid asset, making it less attractive for buyers. As a result, potential buyers often avoid partial-interest properties for various reasons.

As per New York Law you can legally sell your interest in any property that your parents owned if they died without a “Will”.  Once your parents passed away you and your siblings automatically vest title to that property as tenants in common.

Sellers understand they can receive market value if the property was being sold as a whole, also defined as a property with “Marketable Title”.  The most common reason people decide on selling their interest are because of the following below:

• Usually, the heir residing at the house is the one that holds the property hostage as they are living at the property rent free and do not worry about the debt or the condition the property has been facing.  Even though it is rightfully owned by other family members.  They allow these properties to deteriorate, incur liens, judgements or liabilities placing in jeopardy the inherited property left by parents or grandparents.
• They cannot seem to come to terms as to who gets what, as pride, ego, greed or jealousy get in the way.
• The feeling of neglect as another heir might feel most privileged or entitled.
• They would like to close that chapter in their life and move on.

Notoriously difficult to sell, partial-interest properties are exceedingly rare, representing roughly one out of every 10,000 sales – though you might encounter only one in a million, as these sales are not normally made public.

• One of the biggest deterrents to purchasing a partial-interest property is not having control of the property.  Because such investments have multiple stakeholders, any renovations, or modifications to the property, for example, must be approved by another owner who might not share your views. 
• Many banks refuse to grant financing for a partial-interest purchase, even hard money lenders will not lend until you have clean/marketable title.  As a result, many of these transactions are cash only, severely limiting the pool of potential buyers. 
• 97-99% of these types of properties need an extensive amount of renovation as these properties are usually poorly maintained and cared for.
• The exact unknown amount of money that will be poured into the premises for litigation against the other co-owners to try to acquire 100% ownership position. 
• The financial risk and many uncertainties, which can include tax liens, water liens, building violations, environmental violations, sanitation violations, insurance claims, lawsuits that come out of negligence for deteriorated properties etc….
• Money paid to sellers or poured into the property for legal expenses, tax liens, violations etc… is not only risky, but also non-refundable.
• The money invested can be tied up for 5-15 years in some cases.
• The time and energy that takes place in trying to consolidate ownership of a property which includes dealing with so many different personalities.
• Unrecorded deeds, these situations can involve property deeds that are years or even decades old and remain unrecorded.  This leads to a cloud in a property's title.
• Unprobated wills, these situations involve a will that may have not been probated for extended periods, spanning years or even decades.  This also leads to a cloud in title.

Investing capital into these sorts of deals are risky and have to be carefully thought out.  As in any risky investment, when making an investment decision, it is essential for the potential profit to surpass the level of risk involved.