Inheriting a property can be an emotional and sometimes complicated process. If you have inherited a house or flat in Scotland and are considering selling it, there are several legal and practical steps you should be aware of.
From dealing with Confirmation to preparing the property for sale, understanding the process early can help avoid unnecessary delays.
What is Confirmation?
In Scotland, an estate is dealt with by an executor, who is responsible for administering the deceased’s estate.
Where required, the executor will need to obtain Confirmation from the court. This gives the executor authority to deal with the deceased’s assets, including property.
The process can vary depending on the circumstances of the estate, so it is important to speak to a solicitor before making arrangements to sell an inherited property.
Decide what you want to do with the property
Selling isn’t the only option. Depending on the circumstances, a property may be:
- Sold and the proceeds distributed as part of the estate
- Retained by a beneficiary
- Transferred to a beneficiary
- Potentially rented out
If there are multiple beneficiaries, the terms of the Will and the rights of everyone involved need to be considered before decisions are made.
Prepare the property for sale
If the decision is to sell, you’ll need to consider the condition of the property and what should happen to its contents.
Clearing a family home can be difficult, particularly when it contains years of personal belongings. Take care before disposing of anything, as the contents form part of the estate and may include items specifically left to beneficiaries or items with financial value. You should also make sure the property remains secure and appropriately insured while it is unoccupied.
Before marketing, you will generally need a Home Report, which includes a Single Survey and valuation, Energy Report and Property Questionnaire.
As an executor, you may not know the full history of the property. If you are unsure about information required for the Home Report or sale, don’t guess. Speak to your solicitor.
What about tax?
Tax is another important consideration when selling an inherited property.
The overall estate may be subject to Inheritance Tax depending on its value and circumstances. There may also be Capital Gains Tax implications if the property increases in value between the relevant valuation following the death and its eventual sale.
Tax rules can be complex, so professional advice should be obtained based on the individual circumstances of the estate.
Selling the property
Once the legal position is clear and the property is ready, you can appoint an estate agent or solicitor estate agent to market the property.
Your estate agent will advise on the property’s value, marketing strategy and offers received. Your solicitor will then deal with the legal aspects of the sale, including the missives and transfer of the property.
The sale proceeds will form part of the estate and will need to be dealt with appropriately by the executor.
Need advice about an inherited property?
Selling a property as part of an estate can feel overwhelming, particularly when you’re already dealing with a bereavement.
At Kaur Sutherland Conveyancing Solicitors, we can provide advice on the legal aspects of selling an inherited property in Scotland and help you understand what needs to happen next.
If you’ve inherited a property and are considering selling, get in touch with our team today.
