Losing a loved one is never easy, and managing the property they have left behind can add another layer of stress. For many families, the property left behind by a loved one is the most valuable asset in the estate, but deciding what to do with it is not always straightforward. Some beneficiaries choose to keep the home, either to live in or rent out, while others decide that selling is the best option.
At Welcome Home Conveyancing, we help families through these transitions every day. We understand that selling a deceased estate involves more than contracts and paperwork. It also requires transparency and, more importantly, compliance with the law.
If you are thinking about selling the deceased estate property, let’s explain the essential steps you need to consider, along with the responsibilities that fall to executors.
How Long Do You Have to Sell a House After Inheriting It?
There is no fixed rule for how soon you must sell an inherited property. However, most houses are sold within 6 to 12 months of the owner’s passing.
From a tax perspective,capital gains tax (CGT) can apply in certain circumstances, so it is important to be mindful of this and obtain accounting advice to ensure that no CGT is payable.
Getting the Paperwork Right
Before a property can be sold, the executor of the will must usually obtain a grant of probate. It is a legal document issued by the Supreme Court that authorises the executor to administer the estate in line with the deceased’s will.
If the deceased did not leave a will, an eligible beneficiary can apply for letters of administration instead. Both documents provide the legal authority needed to deal with the estate.
There are a few exceptions. For example, if the property was owned as joint tenants with a spouse or partner, ownership usually passes automatically to the surviving joint tenant. In that case, probate may not be required.
Another vital task is lodging a transmission application. Unless the property title has been updated from the deceased’s name to the executor or administrator, it cannot be sold or transferred to a buyer.
State-Specific Legal Requirements
Each state and territory in Australia has its own rules regarding probate and estate sales. For detailed information, check the relevant authority:
- Queensland Government
- New South Wales Supreme Court
- Supreme Court of Victoria
- Government of South Australia Public Trustee
- Western Australia Government
- The Supreme Court of Tasmania
- Northern Territory Government
- Australian Capital Territory Public Trustee & Guardian
Preparing the Property for Sale
Once probate is in motion, the executor can begin preparing the property for sale. Although selling a deceased estate property follows a similar process to any other sale, there are additional considerations:
- Obtain valuations: It is wise to get multiple appraisals from real estate agents to ensure a fair market assessment.
- Calculate costs: Factor in agent commissions, advertising fees, and potential repairs or maintenance.
- Decide on the sale method: Private treaty and auction are both options, but auction is often chosen when multiple beneficiaries are involved because it is transparent and decisive.
Selling estate properties often requires sensitivity. For some beneficiaries, the sale represents a final farewell. Choosing an empathetic real estate agent and maintaining open communication can help ease tensions during this stage.
Can You Sell a Property Before Probate Is Granted?
Technically, an executor can enter into a sale contract before probate has been granted. However, the contract must be made “subject to probate”, which means settlement cannot occur until probate has been issued.
This can be risky if there are delays in the probate process. Probate can take several weeks or months, especially if the will is contested or there are outstanding claims against the estate. If you are an executor, seek professional advice before signing any agreement to ensure you are not exposing yourself or the estate to unnecessary liability.
Once the Property Is Sold
After the property is sold, the executor is responsible for distributing the proceeds according to the will. Before any distributions are made, outstanding debts, taxes, and administration costs must be paid. Only then can the remaining funds be transferred to beneficiaries.
Executors must also keep records of all transactions and maintain clear communication with beneficiaries. This protects the executor from potential disputes and ensures transparency throughout the process.
Common Complications Executors Should Be Aware Of
While many deceased estate sales run smoothly, complications can arise:
- Disputes among beneficiaries: Differences of opinion about whether to sell, when to sell, or how much to accept can create delays.
- Complex wills: Testamentary trusts, unclear instructions, or multiple beneficiaries may require specialist advice.
- Claims against the estate: Inheritance disputes can hold up the process until they are resolved.
- Superannuation and trusts: Executors may also need to manage superannuation accounts or family trust interests, adding complexity to the role.
- Emotional difficulty: Selling the family home can be a highly emotional step for relatives. Executors should prepare for this and manage expectations with empathy.
Executors carry legal and financial responsibilities, and mistakes can result in personal liability. This is why professional support is so valuable.
Why Professional Guidance Matters
When selling a deceased estate, executors are expected to act with care, transparency, and diligence on behalf of the estate. They must also protect themselves from liability while balancing the needs of beneficiaries.
With clear and professional guidance, you can move through the process knowing every step is handled correctly. Our team at Welcome Home Conveyancing provides tailored advice for both sides of the transaction, from conveyancing for buyers looking to purchase estate property to conveyancing for sellers managing the sale on behalf of a loved one’s estate.
Protect Yourself With the Right Advice
Selling estate properties can be challenging, but with the right approach, it does not need to be overwhelming. By understanding the process, meeting legal requirements, and seeking professional guidance, you can ensure that the property is sold properly and fairly.
At Welcome Home Conveyancing, we are here to support you with practical advice and professional expertise. Whether you inherited a property or are managing an estate and need guidance, we would be honoured to assist you through every stage of the sale.