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The death of a loved one brings many emotions and responsibilities, including handling the inheritance. A major part of the inheritance may be the parental home. Are you, as heirs, not agreeing on the potential sale of the property from the inheritance? In this article, you will read what you can do.
Inheriting a property: how does that work again?
When someone passes away, the heirs are entitled to the inheritance. If a will is made, this document determines who inherits which assets (including the house). Without a will, the legal distribution applies, where the children inherit in equal parts.
The heirs can choose whether to accept the inheritance outright, accept it under benefit of inventory, or refuse it. In our article about inheriting a property you can read more about it.
Joint decision required
The deceased's home is part of the estate. If there are multiple heirs, they must jointly decide what to do with it: sell, rent, or live in it themselves. If there is a will, the deceased's wishes are leading concerning the property's destination.
If one of the heirs wants to buy the property, this person must buy out the other heirs at a fair, appraised sale price. All heirs must agree to the sale to the respective heir.
Potential issues around decisions of heirs
Is there an heir who cannot or will not make a decision about the inheritance? This can significantly delay the process. This is not only annoying but can also have financial consequences. For example, the heirs remain jointly responsible for ongoing costs until the property is sold. Consider the (potential) payment of the mortgage, municipal charges, energy costs, and insurances.
If the property is going to be sold, it is wise to do so within eight months. Otherwise, the property will fall into the heirs' assets, which may have implications for taxes and allowances. In our article about selling the parental home you can read more about it.
It's essential that the heir makes a decision regarding the inheritance promptly to avoid any delays.
Setting a deadline for an indecisive heir
For an heir who is not making a decision, it is best to set a deadline in a letter. Indicate in the letter what the position of the rest of the heirs is and give the heir a reasonable period to make a decision.
If no decision is made within that period, you can indicate that you will go to court. The costs for this will then be borne by the heir causing the delay.
Disagreement over the sale of the property
It also regularly occurs that heirs do not agree on selling the property. This usually concerns the sale price and conditions. To sell the house, every heir must sign. If an heir obstructs, this can delay or prevent the sales process. But beware: there are limits to this.
First of all, an heir cannot just block the sale of the property. According to the law, the heir is obliged to cooperate if a reasonable offer has been made and the rest of the heirs agree on the sale. An individual heir cannot block the sale alone without valid reasons.
Mediation can also be an effective way to jointly reach a solution. As a last resort, you can go to the subdistrict court to force a decision, but note: there are costs associated with this. Contact a legal specialist and get advice.
Measures to prevent disputes among heirs
To prevent disputes among heirs, several measures can be taken during one's lifetime.
Will and executor
The owner of the property can, for example, appoint an executor in a will. This executor, often a notary, is authorized to settle the inheritance according to the deceased's wishes. This can prevent many problems.
Irrevocable power of attorney for sale and delivery
The owner of the property can also have an irrevocable power of attorney for sale and delivery signed by all heirs. This prevents one of the heirs from obstructing the sale. You can also agree on a minimum amount for the sale in this power of attorney.
Tips for selling the property from the inheritance
Have the heirs agreed on selling the property? An appraisal by a real estate agent is needed to determine the property's market value. This helps to establish a fair sale price and prevents conflicts over the house's value. A professional appraisal provides an objective basis for the sale.
Read more about determining the asking price here.
Sale within eight months after death
It is wise to sell the property within eight months after the death. After this period, inheritance tax must be paid on the property, which can create financial burdens. Also, after this period, the property may affect any allowances that heirs receive.
In a hurry to sell the property? Read our tips for quickly selling a house.
The proceeds and costs
The proceeds from the property sale are divided among the heirs according to the will or legal distribution. This process runs smoothly if everyone agrees with the sale price and the distribution.
Notary costs, such as drafting the Declaration of Inheritance, are usually paid from the estate. If the estate is not sufficient, the heirs must share these costs.
Read more about the costs of selling a house here.
The importance of hiring a real estate agent
If multiple heirs jointly inherit a property and decide to sell it, hiring a real estate agent is of great value. A real estate agent has an objective and professional view of the property's value and the right selling price. This helps prevent conflicts between heirs over the price.
Moreover, the agent provides efficient guidance and advice throughout the entire sales process, saving time and stress. The real estate agent is the center of all communication and matters to be arranged. This makes the process smoother and faster.
Finally, an agent can act as a neutral mediator in disagreements, ensuring personal emotions do not quickly take over, and joint decisions are made more easily.
Read our tips for comparing real estate agents and choosing a real estate agent together with heirs.
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