Probate is defined as a legal process involving management of a person’s estate upon death.
It provides you with the legal right to distribute assets of the deceased, including their property. If you must manage a person’s estate after death in Wales or England that includes a house, you’ll likely to require a grant of representation (probate) to complete the sale or transfer. In this blog, we’re providing an overview of the process and some key considerations.
Steps for selling a house during probate
A sometimes complex and prolonged process, selling a house during probate has many steps to complete by the person dealing with the deceased person’s estate.
Register the death
Before selling a house during probate, you must register the owner’s death. You’ll need the death certificate to start the probate process and to get the authority to legally sell the house as part of their estate.
Value the Estate and pay inheritance tax
Any inheritance tax (IHT) owed in the estate must be paid before applying for probate. As a result, you must first work out the total value of the estate of the deceased, including assets like investments, savings, valuable items and property.
If no IHT is payable, you can apply for probate instantly, but you’ll still need to confirm the value of the estate. If IHT is due you must file forms and pay the tax owed, and are eligible to apply for probate after 25 days.
Obtain a Grant of Probate
Once 25 days have passed, you can now apply for a probate. The grant of probate confirms that you have the legal right to administer the estate and sell the house and other assets.
Prepare the property
Make the house ready for sale and, if prudent, carry out any work required. Major issues should be addressed and minor repairs dealt with that may impact its sale value. Contacting a solicitor is wise at this point to check the property’s value and offer advice on necessary steps to streamline the legal process one you get a buyer.
Market the property
Find a reliable and trustworthy estate agent that can advertise the property to potential buyers.
Accept the offer
After receiving a suitable offer, you can accept it in your role of administrator of the estate.
Exchange contracts
After you and your solicitor agree on the terms of sale with the buyer’s solicitor, you can exchange contracts. At this point, the sale becomes binding under the law and the buyer must pay a deposit.
Completion of sale
After all legal requirements are met, you can complete the house sale. The remaining funds received from the sale can then be distributed to beneficiaries of the deceased person’s estate.
Important considerations about selling a house during probate
As the person dealing with a person’s estate upon death you have the right to market a house for sale before you obtain the grant of probate. However, as administrator you don’t have the legal right to sell the house until you have received the grant. Even if you are named as an executor in a will, you will still require a grant to reach the point of exchanging contracts.
When the executor of a will opts to market a house for sale when they have not yet obtained a grant of probate, both potential buyers and the estate agents involved must be made fully aware that any transaction is subject to getting the grant. Should, for some reason, probate be denied or delayed, the house sale may be unable to proceed, as the buyers may not be able to wait and must withdraw their offer.
As a rule, it is strongly advised that you wait to market the house for sale until after you have been granted probate. Carrying out the steps in the correct order can minimise the risk of any potential delays and complications. While you might feel rushed to market the house to speed up the sale when probate is obtained, remember that the most important steps of exchanging contracts and completion of sale cannot happen before a grant of probate is issued.
Find a qualified solicitor with the expertise you need
As you can see, the process of estate administration can be complicated and is rarely quick. It is vital to consider this in when a house is included in the estate and must be sold. As a result, it is advisable to enlist the aid of a solicitor, qualified in both conveyancing and probate to make certain you understand your obligations and the legal processes involved.
As professional conveyancing and probate solicitors in North Wales, our team at Bennett Smith Solicitors have the experience you need. Reach out to us today for the assistance you need.
