Managing the sale of a property that belonged to a loved one after their death is both personally difficult and can feel like a heavy burden – with the complexities of needing to clear out belongings and mementoes, and making decisions while grieving that you'd hope they would have approved of.
For many of the people we speak with who want to complete a sale without added stress, this is the first time they've ever dealt with probate proceedings, and they simply don't know how it all works or what is expected of them.
In this guide from the property auction specialists at Clive Emson, we've detailed all the main obligations and provided some general information about what probate means for the sale of your relative's house
Selling a Property During Probate: Essential Facts
- Probate is a process that begins when someone passes away. It determines who should act as executor, or the person who manages the estate, and ensures that instructions left behind in a will are respected.
- Most people understand the importance of creating a valid will, which means you may know you’ve been nominated as an executor, and therefore have a little more time to prepare or think about how you’ll sell a home when the time comes.
- The sale itself cannot happen until the legal side of probate is completed, which normally takes around two to four months, depending on the size of the estate, its value, and whether or not there is a will.
- Once probate has been granted, you have the right to sell the house any way you choose, provided any other executors agree, with many families preferring auction sales to ensure this concludes quickly and efficiently.
What Happens if I Need to Sell a House During Probate?
We briefly summarised above that probate is a process that decides who has the right to manage the estate belonging to someone who has passed away. The estate includes all property that belonged to the deceased, including their money, assets, and home.
There are two ways in which you may discover you need to handle the sale:
You’ve been named as an executor in your loved one’s will
There is no will, and the court has appointed you as an executor
Less often, the courts might choose an administrator, but it is more usual for them to elect to appoint the person’s next of kin as executor – and this is the scenario we’re talking through today.
There are several aspects to selling a house in probate, but the key is to ensure you apply for something called the Grant of Probate, which a solicitor will manage on your behalf. This certificate confirms that you possess the legal authority to sell the home.
Find out how much your probate property will sell for at auction.
Let us know the details of your property and we’ll provide you with our recommendations for the guide price and reserve price
A Step-by-Step Checklist to Selling a Property in Probate
Once you've received the Grant of Probate, or an alternative form of authorisation called the Letter of Administration if there isn't a will, you'll be expected to proceed through the following steps:
Have the house assessed with a valuation to ensure you know the market value and the condition of the property.
Clear out belongings and possessions, a task we know can be emotionally distressing, and ensure the house is ready to be sold.
Decide how you're going to sell, whether through an agentor through an auction. This could depend on how quickly you want to sell, the property's value, and whether you need to consider the opinions of other executors or estate beneficiaries.
List the house for sale. If you're selling through an auction, we'll manage the marketing and the auction process itself. Otherwise, you will need to work with your selected agent or firm.
While you can’t sell the home before probate concludes, you can start the sales process, but you won’t have the legal permission to accept an offer or transfer ownership until you have the appropriate Grant.
Why Might I Need to Sell a House in Probate Quickly?
Although you aren't obligated to sell by a set date, there is an expectation that executors will sell, if they're not planning to live in or rent out the home, within a 'reasonable' time frame.
That is partly because you'll need to ensure that inheritances left to other heirs have been distributed without undue delay, but also because you may need to sell promptly to be able to raise the finances to pay an inheritance tax liability.
Additionally, if the deceased had debts or taxes outstanding that you must pay, you’ll need to make these arrangements fairly speedily to avoid fines, penalties, interest charges or disputes where the executor is accused of not settling affairs in good time.
What Aspects of a Sale Can I Manage Before Probate Is Complete?
Although you can't sell a house until you have the legal right to do so, that doesn't mean you can't start the process sooner, particularly if probate is more complex and is anticipated to take longer than average.
You can, for example:
Begin emptying possessions, provided these aren't those that need to be valued and sold or that have been left to a beneficiary.
Consult your solicitor to ensure you understand the specifics of the will and how the estate is to be distributed.
Think about how you're going to sell the home, comparing the costs, time frames and respective pros and cons of each option.
Look at marketing the property to potential buyers – highlighting that the house is in probate and will become available to buy after this.
We've noted that the most common solution is to sell through a property auction. Once you have obtained the Grant of Probate, you can proceed as quickly as you wish, having the property appraised and preparing the necessary documentation for the sale.
In the meantime, if you're managing a house that is going through the probate process, want further advice about selling at auction, or are comparing the options to ensure you're ready to proceed, please get in touch with any Clive Emson team for more personalised support.
