If you are the executor or administrator of an estate, you may need to sell a property. Find out what to be aware of and how the probate sale process works.
Dealing with an estate administration can be daunting, as well as emotionally difficult, particularly if there is a property to clear and sell. As an executor or, if there is no Will, an administrator, you are legally required to act in the best interests of the estate and the beneficiaries.
This means securing and insuring the property, as well as obtaining the best price when it is sold.
The probate property sale process
In order to sell a property that is part of a deceased estate, you always need to obtain a Grant of Probate or, if the deceased did not leave a Will, a Grant of Letters of Administration. This is the legal document that gives you the right to wind up the estate.
The property will need to be valued, along with the rest of the estate, and any Inheritance Tax paid before a grant is applied for. The Probate Registry can take many weeks to process an application, so it is important to start dealing with matters as soon as possible.
An executor or administrator is generally expected to try to finalise estate administration within a year, although reasonable delays are accepted, particularly if a property sale is involved.
When to market the property
You will not be able to exchange contracts on the sale until you have the Grant of Probate or Grant of Letters of Administration. This means that there could be a delay if you market the property too early. You can discuss the likely timescales with a solicitor and take advice on the current length of time the Probate Registry are taking and when the solicitor recommends marketing the property.
Property information forms
As part of the sale process, you will be required to fill in property information forms and a fixtures and fittings list. It is likely that you will have limited information about the property, particularly if you have never lived there.
The solicitor can assist you with the forms if necessary. You can state that you do not know an answer if this is the case; buyers of a probate property will accept that there is less information available in this sort of purchase.
You can visit the property to fill in the fixtures and fittings list, which specifies which items will remain at the property. If you wish to offer items for sale, you can also note the prices on this form, which will form part of the contract in due course.
Obtaining the best price and avoiding a conflict of interest
As an executor or administrator, you must take steps to obtain the best price for the property. You cannot generally purchase the property yourself, nor can you sell it to a friend or relative. This is known as self-dealing and is a conflict of interest.
If you want to purchase the property yourself, you must take legal advice on how to approach this to avoid falling foul of the law and facing a potential claim from the beneficiaries.
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