Selling Property – Estate Administration
Are you an executor selling property as part of an Estate?
It is not unusual for an executor to have a lot of questions when it comes to selling property that was owned by a deceased person, especially when the property is the family home.
Some of the frequently asked questions include:
Can the deceased’s property be sold?
The decision to sell a property, including when to sell, usually lies with the executor unless the Will of the deceased person specifically states otherwise.
When can the property be marketed for sale?
A house or property can be marketed for sale and a contract entered into while the property is still held in the name of the deceased, however it is important that the contract reflects the following:
The seller should be recorded as the executor(s) being the Legal Personal Representative(s) of the deceased person’s estate; and
A special condition needs to be inserted to require the title to be transferred prior to settlement.
How does the property need to be held in order to finalise the sale?
Settlement is not able to take place until the property is recorded as being held in the name of the executor(s) as Legal Personal Representative(s). This can be done by lodging the relevant paperwork at the Land Registry.
What happens to the money from the sale of the property?
The sale proceeds will form part of the estate monies and must be distributed to the beneficiaries in accordance with the terms of the Will.
There are also tax implications that should be considered when selling property as part of an estate. Information on Capital Gains Tax can be found on the Australian Taxation Office Website.
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