Suffering the loss of a loved one is a difficult time on its own, without the added stress of knowing what to do with their house. If you find yourself in this unfortunate situation, here is a short guide on where to start with the process.
In the first instance it should be established whether the deceased had made a Will. The Will should state who the deceased would like to deal with their estate, known as an Executor or Executors if more than one. The estate includes any money, property or possessions belonging to the deceased.
An Executor is responsible for collecting and valuing the assets, paying off any debts and Inheritance tax that is due and distributing the estate in accordance with the Will.
Whether or not the house needs to be sold will depend on the wishes of the beneficiaries. If the beneficiaries want the property to be transferred into their name(s), then it will not need to be sold. However, if they do not wish for the property to be transferred to them, then the property will need to be sold.
If the property is registered a copy of the Title Register can be electronically downloaded from the Land Registry. If, however the property is unregistered, the original Title Deeds will need to be located. Often these will be stored with the deceased’s solicitor or in a safe place at the property.
If the deceased was the sole owner of the property, then a Grant of Probate will be needed before the property can be sold.
If the property is jointly owned with someone else, who survived them, clarification should be obtained from a legal advisor as to how the property was held as joint owners. If the property was held as Joint Tenants, the deceased’s share would automatically pass to the surviving joint owner. Whereas a property held as Tenants in Common would leave the deceased’s share to the beneficiary stated in their Will or through the Rules of Intestacy and does not pass automatically to the surviving joint owner.
If you’re an Executor, you can apply for Probate yourself or use a solicitor. The Grant of Probate gives the legal right to deal with someone’s estate and will need to be issued before an exchange of contracts or completion can take place.
Any mortgages or loans secured on the property would need to be repaid from the sale proceeds on completion.
From hereafter the process doesn’t differ that much from an ordinary sale. Dependant on how much knowledge the Executor has about the property will depend on how much information they can provide to a potential purchaser. It is very important that where there is little knowledge about the property, this is stated and no assumptions are made.
It will be necessary for the Executor to set up a separate bank account so that on completion the sale proceeds can be paid into this account. An account held as an Executor account for the deceased is most suitable. This is to ensure that the Executor can clearly account for all monies received and paid in respect of the deceased estate. Keeping a clear record of the work done so they can answer any questions about how they administered the estate if required.
The process of dealing with Probate and then distributing an estate can be an incredibly stressful time. Making sure you’re aware of the process of how to sell a property after a death can help to alleviate some of that stress and uncertainty.
Here at Brethertons our team of conveyancers work closely alongside the Probate Department ensuring that the two proceed cohesively together.
For any further enquiries or advice please do not hesitate me on lottiedunkley@brethertons.co.uk.
