If you inherit a home from parents or other relatives, you may not necessarily want to live in the property. Before selling the home, careful preparation can reduce the risk of legal issues related to the sale.
Keep these considerations in mind when selling an inherited home.
Probate authority
If your loved one’s estate has to go through probate court, you cannot sell any estate assets until that process is complete. If the deceased person named you the executor of his or her estate, you must follow the proper probate procedures if you plan to sell a home you will inherit.
Tax requirements
You may have to pay taxes on the sale of the home if you do not live in it for at least two years. Depending on the situation, capital gains or federal estate tax may apply. Pennsylvania also has a state inheritance tax.
Inspection and disclosure
Seller disclosures require you to provide certain information about the property to prospective buyers. You may be unable to speak to these concerns if you have not lived in the home, so an inspection is essential to ensure you can give the proper legal disclosures.
Vacancy issues
Leaving the home empty during the probate process and pending a sale can cause the property to deteriorate. If you live in a different state, consider paying a property manager to care for the home while you await the next steps. He or she can help you prevent local tickets resulting from unmowed grass and problems such as frozen pipes that lead to flooding.
Exploring these issues with experienced professionals can help the sale of estate real estate go smoothly.
