This article examines the legalities and potential options for selling inherited property, explained through the lens of probate.
We’ll take a look at possibilities for selling during and without probate, as well as discuss the options you have for selling inherited property fast and easy.
Let’s dive into the details.
Can Heir Property Be Sold?
Yes, you can sell heir property, and there are a few ways to go about it: once probate is complete, while it’s ongoing, and sometimes without the need for probate.
The circumstances that surround the selling method will vary depending on which of these situations applies to you.
For example, if you sell the inherited home after probate, everything can be handled just like any other property you own. You can freely decide on the sales method.
That’s because ownership officially transfers once probate is finished. So, the property can be sold without any inheritance rules, conditions, or restrictions.
You’ll find details below on selling without probate and how to sell an inherited property during probate.
Selling an Inherited Property Without Probate
When getting an inheritance, probate is often necessary to transfer ownership of a decedent’s property before it can be sold. However, there are cases where the title directly transfers.
For those exceptions, you can sell a house without probate, streamlining the sales process and saving time and expenses.
What happens when you sell a house you inherited without probate? Here are five scenarios.
Living Trust Property
Let’s say, for example, that you inherited your parents’ house through a legal arrangement called a trust. The trust owns the property, so it isn’t included among assets in the estate.
That allows the title to transfer directly to you as the trust’s beneficiary. Therefore, court involvement is not required if the trust’s provisions don’t prohibit selling.
Joint Ownership Cases
You can sell a house that you inherited without going through probate if it passes to you as the surviving owner under a joint tenancy arrangement.
Joint tenants share equal ownership and have survivorship rights. When one co-owner dies, their share automatically passes to remaining joint tenants with no probate required.
TOD Deeds
Many states allow Transfer-on-Death (TOD) deeds, and parents often use them to name their children as beneficiaries to inherit real estate directly upon their death.
That makes selling your parents’ home much simpler. For instance, once they pass away, you can typically get the property title transferred simply by presenting a death certificate.
Small Estate Declaration
You may be able to skip probate and still claim the property if your state has a simplified procedure for estates with a relatively modest value.
If yes, and the estate falls below the state’s value threshold, you can sell an inherited house by submitting a small estate affidavit to the court, proving your rights to transfer the title.
Jointly Owned Marital Property
When one spouse dies in a community property state, the surviving spouse automatically inherits the deceased’s share if they have the right of survivorship.
After that, they can divest their interest in the property without probate proceedings.
Note that most of these exceptions require advance planning, and all must be handled properly to ensure legal heirs can sell inherited property without formal legal proceedings.
Therefore, it’s wise to seek professional guidance to navigate the nuances of probate avoidance planning. Otherwise, selling a house after probate is the most likely option you have to take.
Selling an Inherited Property During Probate
If you have to wait for probate before selling a house, you will be subject to your state’s laws and rules for selling during this process.
While each state has its own regulations governing probate, the proceedings share fundamental similarities. As for how to sell probate real estate, here’s how the process generally works.
Personal Representative’s Authority
An executor, named in the will and appointed by the court, oversees estate settlement. In most cases, the executor can sell the house during probate if they follow the rules and the sale optimally benefits the estate.
If there is no will, the court appoints an administrator who can also sell a probate house.
Court Approvals
A person can sell an inherited property during probate, but the court typically must consent. The personal representative submits a petition with details on the what and why of the sale.
Once the court says yes, the representative can sell the property. The court must also approve the purchase offer the representative selects as best before they can accept it.
Beneficiary Consent
An administrator or executor can sell property without all beneficiaries approving when acting in the estate’s best interests. However, involving heirs can help prevent disputes,
Conflicts may still arise, such as when familial heirs disagree on selling. But even if an executor of a will can evict a beneficiary from the property, there is a way to avoid this.
In this case, an heir could buy a sibling out of an inherited house, allowing the sale to proceed without litigation and without evicting a sibling from an inherited house.
Marketing and Sale Closing
Preparing the property for sale includes staging, any needed repairs, and an appraisal to determine an appropriate price you can sell your inherited property for.
When offers come in, the personal representative evaluates them and picks the strongest one for the probate property. After court approval, the deal is closed.
Proceeds Distribution
After the property sells, the executor or administrator has the responsibility of distributing the proceeds. Outstanding debts and taxes are usually paid first.
Next, probate expenses such as legal fees and court costs are covered. Remaining funds go to the beneficiaries in accordance with the will or state intestacy laws if there is no will.
What Is the Easiest Way to Sell an Inherited House?
Selling to a company that purchases inherited properties for cash is an easy and straightforward option whether you’re selling an inherited house as is, or one that’s market-ready.
This route offers you several advantages over a conventional sale.
- Cash offer: There’s no waiting period for mortgage approval or anxiety that the deal may fall apart because buyer financing was refused. You get quick cash.
- Quick closing: Without the complexities and extensive paperwork of traditional transactions, sales can often close in a week or two. That’s especially helpful when you want to sell your probate house fast.
- Selling despite condition: Cash buyers don’t require repairs or clearouts if you inherited a house that needs work or one in disarray (e.g., you inherited a hoarder house). They will buy it exactly as it is.
- Commission doesn’t apply: Traditional sales involve agents. A transaction to an investor has no intermediary, which translates into more proceeds for you.
- Minimal settlement costs: Closing the sale will typically cost you less because cash buyers absorb closing expenses on the seller’s request.
Our website has vetted and approved selected cash buying companies. All you need to do is get a cash offer from several local firms and make your pick based on what works best for you.
Curious about other methods to sell? Explore our comprehensive guide on selling an inherited house for detailed insights.