Dealing with a property sale after a loved one has died is often emotional and complex, but when you consider the legalities of probate, and not knowing when or how you should manage the sale process, it can become even more of a burden.
Can you sell a house before probate? If you’re mid-way through the probate process, then the basics are that you won’t be able to sell, or at least complete a transaction, until probate has been granted. That’s because, technically, even if you are the verified inheritor, the property won’t legally become yours until then.
However, if you wish, you can start investigating the best ways to sell and put the property on the market, provided you inform buyers that the house will not be available until probate has been granted.
Quick Facts About Selling a House in Probate
- Probate is the legal process when someone dies that sets out who will serve as the executor or administrator of the estate, any taxes or debts that need to be settled, and how the remaining assets, including properties, are distributed among beneficiaries.
- It is common for families to sell a home after probate, since houses are typically the highest-valued assets in most estates. Still, if you're the inheritor, you don't necessarily need to sell at all if you'd rather not, and would, for instance, like to live in the home yourself.
- In most cases, you cannot sell until you've received a document called the Grant of Probate, which confirms that you have the right to the property and to sell it. There are some exceptions to that rule, such as where a spouse or partner with whom you owned a property jointly has passed away, and you're named as the direct recipient of their ownership share
What to Know About Being Able to Sell a Property Before Probate Completes
Probate can be long-winded and complicated, but a lot might depend on the size of the estate, the number of executors and beneficiaries named in the deceased's will, and whether there are legal issues such as conflicting claims or outstanding debts.
When it comes to selling, the choice is yours, and you or you and your joint beneficiaries could opt to live in the home, keep it as a rental asset, or buy out the other person if one person would like to live there.
However, a large proportion opt to sell to ensure they can cover any inheritance taxes payable, which fall due within six months.
Although probate doesn't impact any of that decision-making, it becomes relevant if you've decided to sell, because you cannot sell the property until it legally becomes yours, which only happens once probate has been granted.
However, you can market or list the property. You'll need to disclose that the property is subject to probate to ensure prospective buyers or bidders are fully aware that any offers or negotiations they make will depend on the Grant of Probate.
Who Has the Authority to Sell a Property Once Probate Has Been Granted?
There are potentially two scenarios when you’ll need to understand probate timelines:
You’re named as an executor and need to manage the sale of a property on behalf of all beneficiaries, which may include yourself as well as others.
You're the direct inheritor of a property, and the executor has transferred ownership to you following probate.
If you’re the executor, you’ll need to have the property valued as part of probate, which ensures that, when you come to sell, there is a clear indication of the open market value you should expect to achieve on behalf of the beneficiaries.
Valuations are also important for any beneficiary of an inherited property to calculate the inheritance taxes due.
When the Grant of Probate is issued, you’ll then need to decide how to sell, which might depend on whether you’d chosen to begin marketing the property in advance, or are now starting the sales process.
We’ve noted that inheritance taxes are payable within six months. Although HMRC can agree to split this into instalments, depending on the circumstances, it’s common for sellers of private properties to want to sell quickly to cover this sometimes considerable tax charge.
Selling a House That Has Cleared Probate By Auction
Inheritors can sell a house via any method that makes sense, but, as we've mentioned, speed is often a top priority because the sooner the property is sold, the sooner the funds will become available to cover inheritance tax liabilities.
As auctioneers, we regularly handle probate property sales. We can provide further guidance on how the sales process works, when to start marketing your property, and how to set a guide price before an auction begins, based on the valuation you'll likely already have.
While you must wait for probate before you can sell, we can circulate the particulars in advance, especially if your property is in a location or has features that we know buyers are constantly looking for – this can drum up interest in the listing when the time comes to enter it into our next auction sale.
The benefit to sellers is that auction pricing is transparent, you can attract competitive bidding to achieve higher-than-expected prices, and the transaction is final and legally binding on the day.
It usually takes about a month for the full balance to clear, which ensures you can settle any tax bill you might be worried about and move forward.
What Else Do I Need to Do Before Selling a Property After Probate?
Aside from all the above, you'll need to ensure you have an up-to-date Energy Performance Certificate for the legal pack or particulars and insurance coverage throughout the period the home is empty, alongside all the usual floor plans and details you'd need to sell a property.
If you've never attended a property auction before, you are welcome to get in touch or review the upcoming properties we have listed for sale alongside recently concluded auction houses to get an idea of the diversity of the lots and the values they achieve.
