Selling an inherited property: What you need to know

Inheriting a property can evoke a mix of emotions. For some, it’s a welcome windfall; for others, it’s a bittersweet reminder of a loved one. Whatever your circumstances, if you’ve recently inherited a property and are thinking about selling, there are a few important steps and legal details to be aware of. We’ve put together a simple guide to help you navigate the process smoothly.

The inheritance process

In Scotland, managing an estate, including inherited property, involves a legal procedure known as Confirmation, similar to probate in other parts of the UK. Typically, a Will names an executor to handle the estate. In the absence of a Will, the court appoints an executor dative.

Before proceeding to sell the inherited property, obtaining Confirmation is essential. This legal document grants the executor authority to manage the deceased’s assets, settle debts, and distribute the estate, which may involve transferring or selling the property.

It is worth mentioning that, in the case of jointly owned properties, the representatives of any joint owner, who has passed away, should always consult with a solicitor. This will enable the solicitor to check the title deeds and advise what, if anything, needs to be done, in relation to the deceased’s share of the property.

The timeline for Confirmation varies; while some areas may process applications in a matter of weeks, more complex estates or those without a Will can take several months, and sometimes much longer. Consulting a solicitor experienced in Scottish inheritance law is advisable for tailored guidance.

Do you pay tax on inherited property?

One of the most common questions people ask is whether they’ll be hit with a hefty tax bill when they inherit a home.

This aspect of the process can differ vastly depending on many factors, so our advice would be to engage a tax specialist who deals with estates and properties at the earliest opportunity.

It’s also a good idea to get a professional property valuation as soon as possible after inheritance for tax purposes and to help set expectations for the eventual sale.

The process of selling an inherited property

Once Confirmation is obtained, you can proceed with selling the property. Here are the key steps involved:

• Instruct a solicitor: You’ll need a solicitor to handle the legal aspects of the sale, from preparing the title deeds to managing offers and concluding the missives.
• Get a Home Report: Just like any property sale in Scotland, you’ll need a Home Report before marketing the property. This includes a property survey, an energy report, and a property questionnaire.
• Choose an estate agent: A solicitor estate agent experienced with inherited properties can offer helpful advice, especially if the home’s been empty for a while or needs modernisation.
• Prepare the property: It might need a bit of TLC before hitting the market. Clearing personal belongings, tidying the garden, and perhaps giving it a fresh coat of paint can make a big difference to buyers.
• Market the property and accept an offer: Your solicitor estate agent will handle any formal offers and negotiate the missives on your behalf.
• Complete the sale: Once the legal work’s done, the property changes hands on the agreed date of entry, and the funds from the sale are transferred to the executor or estate beneficiaries, depending on the circumstances.

Final thoughts

Selling an inherited property in Scotland can feel like a daunting task at an already difficult time, but you don’t have to tackle it alone. A good solicitor estate agent can help ease the process, making sure everything’s handled properly and you’re aware of any tax considerations.

If you’re navigating the sale of an inherited property, TSPC are here to assist. From professional property valuations to expert guidance from local solicitor estate agents, we’re dedicated to making this process smoother for you. For more information, get in touch.