Selling A Property After Someone Has Died: What You Need To Know

Share:

Very few of us like to talk, or think about, what will happen when our parents or other family members pass away. We especially might not like to think about what will happen to their home and who will be responsible for selling it. However the reality is that many of us will find ourselves in these situations at some point in our lives. 

Bearing all this in mind, we thought it would be really useful to explain the process of putting a property on the market following the death of a parent or loved one. Katie Hatten sat down with Sophie Price from Foden Solicitors to help explain how soon you can legally sell a property following someone’s death. 

How soon can I put a property up for sale following someone’s death?

In theory, the property can go on the market as soon as the family feels ready for the property to be sold. If the deceased has passed away and left a will with clear instructions of who the beneficiaries and executors are then they are legally ok to put that property on the market. The executors will need to make sure that the Grant of Letters of Administration has been applied for, in order that they can legally administer the estate. Once this has been approved, then change of ownership for the property can be granted and contracts can be finalised for the sale.  

However, if there is no will in place then that means that legally there is no one officially appointed to either inherit or administer the deceased’s estate. In this situation, the Grant of Letters of Administration becomes much more important at an earlier stage. Whilst you might assume that if both your parents have died then you and your siblings will automatically inherit their home, this is not legally correct. Where no will has been written, the laws of intestacy are applied in determining who will inherit and administer the estate. 

Is it necessary to have a solicitor involved in the administration of an estate?

No, you do not have to involve a solicitor in the administration process. If you’re legally responsible for administering an estate then you can apply for the grant of administration online yourself. 

However, if you have never been through the process before, then you may find it helpful to seek the advice of a solicitor. A solicitor will be able to point out if there are likely to be things you are paying for which you don’t need to such as various death duties and inheritance tax. They can also be helpful with offering advice on administering the estate and dealing with the assets involved. Whilst some estates might be quite small and straightforward, others can be very complicated. 

Every situation is different, but getting advice early on can save you lots of time, and money, as you get further down the process. 

Can an executor and a beneficiary be the same person? 

Yes, an executor can be a beneficiary. However, where possible we generally advise that you choose an independent executor who is not a beneficiary. None of us know how we will react to grief, especially when it comes to dealing with financial assets. Having one family member responsible for executing the will and benefiting from it, alongside three or four others who are only beneficiaries, could lead to problems which you may not have foreseen. 

Executors have the legal responsibility for administering an estate. It is important that they get their job right, especially in terms of making sure that a property, a group of properties or any other assets are sold at the correct price. Beneficiaries also have a personal duty and right to be kept informed about the estate and to be made aware of any problems. 

When it comes to marketing a property, the executors need to be very mindful not to just try and sell the property as quickly as possible in order to get rid of it. They need to make sure it is sold at the correct price according to its market value in order to achieve the best possible outcome for the beneficiaries. This is why we always ask our clients to really think about who they are naming as their executor, especially if they have lots of assets and property to leave.  If there is someone who knows the family who can act independently and stand back a bit to organise the estate, then this is often not a bad thing.

How long does it take for the Grant of Letters of administration to be approved? 

Unfortunately there is no fixed timeframe for how long the Grant of Letters of Administration can take to be approved. We have had some cases where we have submitted an application and it has been approved in as little as two weeks. Whilst in other cases we are still waiting for an approval eight months later. 

On average though, providing there is a will in place and it is not a taxable estate, then from point of application to issue, under the current timescales issued by the probate registry and our courts and tribunals service, we would say the process usually takes about 2-3 months. 

From a buyer's point of view is there anything else, aside from the Grant of Letters of Administration, that you should be aware of? 

Understanding the nature of the estate’s administration is very important. Just because the property you are buying is empty and the previous owner has died, it doesn’t mean the sale will go through quickly. 

If there is a very neutral executor, then it may take time for them to answer and resolve questions, especially if there are lots of beneficiaries involved. Similarly if any of the beneficiaries are charities, then they may have to check any issues with the charity’s legacy officer before the sale can proceed. 

The other thing to be aware of is that the actual title of a property might not be registered with the land registry. If you are purchasing a property which is very old, and has been lived in by one family for a long time, then it might have an unregistered title. This will obviously need to be resolved legally before you complete the sale. 

What would be your top tips for anyone who is going through, or may be about to go through, this process? 

Seek advice early on especially when it comes to selling a property. Before you spend lots of money redecorating and installing a new kitchen, find out what the property is worth. Have coordinated valuations early on to see what the actual market value of the property is. You can then make a decision as to whether it is worth spending money on certain aspects of the property. 

Make sure that there is a clear understanding in your path to selling a property as to what your timescales are. It is not unreasonable for the process to take 12-18 months following someone’s death. So long as everyone involved is aware of what steps need to be taken and how long they might take, it is perfectly normal for you to take as long as you need to finalise everything from a legal point of view. 

Final Thoughts

We know that selling and administering an estate following a death can be a long and highly emotional process for many people. To help make things as easy as possible, make sure you have the difficult conversations early on. Talk to family and loved ones about your wishes and, most importantly, make sure you have an up to date will written by a professional. 

For help and advice on any of the subjects we have covered today, please contact the team at Foden Solicitors or Foden Property.

Watch the full conversation between Katie and Sophie on the Foden Property Podcast on YouTube