Inheriting a house frequently comes at one of the worst moments of your life. You’re in mourning, there are a hundred things to do, and there’s the house. Maybe it’s the house you were raised in. Or maybe it’s a 40 year old row house that your parents never renovated. Either way, the paperwork does not make things easier.
This guide talks you through it in clear English. You’ll learn how probate works through the Philadelphia Register of Wills, who has the legal right to sell the house, how families conduct a sale when there are numerous heirs and what your alternatives are if the house has been sitting empty or is still full of items.
Quick note before we get started every estate is a little different. This article gives you the overall picture but it’s always a good idea to talk with an estate attorney about your individual situation.
Probate 101: What’s The Process Like In Philadelphia
Probate is the legal procedure of administering someone’s estate after they die. In Philadelphia it goes through the Register of Wills. Even if everyone in the family agrees on what to do, no one has the legal ability to sell the house until probate is opened.
Where there is a will. The will will normally name an executor. That person files the will with the Register of Wills and when accepted, they receive a document called Letters Testamentary. This is what grants the executor the legal ability to act on behalf of the estate, including the sale of the dwelling.
If there is no will. If a person dies without a will a family member, frequently a spouse or adult child, might petition to be the estate’s administrator. If authorised, they are granted Letters of Administration giving them identical powers.
What happens now? Once the executor or administrator gets their Letters there are usually a few more things to do, such as contacting heirs and creditors and submitting the Pennsylvania inheritance tax report. The estate must also pay off any outstanding bills and debts before any money may be distributed to the heirs.
A Note on Inheritance Duty. Pennsylvania taxes inheritances and the tax rate depends on the relationship between the heir and the deceased. Usually spouses pay nothing and children and other relatives pay at varied rates. The tax is usually payable within nine months and you may be able to get a small rebate for early payment. An estate attorney or an accountant will tell you what relates to your family.
Who is legally entitled to sell?
This is one of the most frequent enquiries we get from families. The short answer is that the person mentioned in the Letters, the executor or administrator, is usually the one who signs to sell the residence for the estate.
That does not mean they can do whatever they want. The executor is tasked with acting in the best interest of the estate and the heirs. That’s why it’s important to keep everybody in the loop, and that the sale price is fair.
A few things can make it a little more complicated:
- Your parent’s name was never in the house. In Philadelphia, it’s not uncommon for a home to still remain in a grandparent’s name, or for the deed to never have been amended after an earlier death. It’s often referred to as a “tangled title.”
- Never opened an estate. If a family member died years ago and probate wasn’t done it has to be done before the house may be sold.
- Unpaid bills on the residence. Back taxes, water bills and other liens generally have to be paid off at closing.
If any of this sounds familiar, don’t panic. They’re fairly frequent in Philadelphia, and there are local programs and attorneys who help families sort them out. A title firm can inform you precisely what has to be done to clear the title. You may read more about it in our guide on deed transfers, liens and title issues.
Selling with Multiple Heirs
If a house is bequeathed to more than one person, such numerous siblings and sisters, everyone normally gets a vote in what occurs. That’s where families can get bogged down.
Here are some typical ways families deal with it:
Sell it, and share the money. This is the most popular choice. The house is sold, the estate’s bills are paid, and what is left is split among the heirs according to the will or Pennsylvania law.
One heir buys out the rest. If any one of them wishes to keep the house, they can buy out the others. Usually this involves securing a fair price for the home and, in many circumstances, a mortgage to pay off all the other people.
A few tips that make things easier:
- Talk early and frankly. The sooner people say what they want, the easier it is to establish a plan that works.
- Understand the worth of the home. And it’s easier to agree to a transaction when everyone is seeing the same numbers. Our guide to how much your house is worth in Philadelphia can help.
- If you become stranded, get assistance. If the family can’t agree, an estate attorney or mediator can help. Sometimes a court has to intervene.
Vacant House Options
Many inherited properties lie vacant for months as families sort things out. However, a vacant home may rapidly become a costly and frustrating experience.
While the house is empty, watch for these things:
- Insurance. Many conventional policies restrict coverage after a home has been vacant for a period of time. Call the insurance company and make sure the house is still insured.
- Utility. Keep the heat on in the winter to protect the pipes, and keep the water and electric accounts current.
- Security. Lock your doors and windows and have a neighbour check on you. In Philadelphia, empty homes are supposed to be secured and L&I can issue violations for those that aren’t.
The longer a house sits, the more these expenditures accumulate. One reason many families opt to sell sooner rather than later.
Housing Choices Stuffed With Stuff
The hardest aspect, in most cases, is sorting through a loved one’s belongings.
Here are several possibilities:
Take what you need and leave the rest. Many families walk through the house together, leaving behind everything but photos, keepsakes and important paperwork.
Have an estate sale or donate. If there are furniture or valuables an estate sale can aid. Local charities may also collect usable things.
Get the cleaning service. This can save a lot of time, particularly if family members reside out of town, but it costs money.
Sell the house with the stuff in it, as is. If you’re selling to a cash buyer, you don’t really have to clean out the house at all. Cleanout is the buyer’s responsibility after closing.
Before you throw anything away, examine carefully for vital paperwork like the deed, insurance policies, bank statements and any papers the executor might need.
Options for Selling an Inherited Home
Once you have the legal right to sell, there are two major options.
Agent representation. If the house is in good repair, you can get a greater price for it. But it usually entails clearing out the home, making repairs and doing showings while waiting for a buyer’s loan to go through. That can take months. The estate keeps paying the bills all the time. See how this compares in our article on cash offers vs. traditional sales.
Only cash payment. No repairs, no showings, no cleanout when you sell to a local cash buyer. Typically, you may close in a few weeks and a competent buyer will cooperate with the executor, the family and the estate counsel to keep things moving forward. If the house requires lots of maintenance, check out our guide on selling a house that needs repairs to compare your choices.
Not sure which way is the proper way? We go into greater detail on both in our advice on how to sell your house fast in Philadelphia.
Here to Help
Selling a loved one’s house isn’t merely a business transaction. It’s personal and it demands tolerance and respect. DI Solutions LLC purchases inherited and probate homes anywhere in Philadelphia regardless of their state, be they vacant, in need of repairs, or full with stuff. We work with the executor, the family and the estate counsel and we never push anyone to make a decision.
Want to know what the house could sell for as-is? Request a free cash offer or call us at (267) 575-0354. There’s no obligation, and we’re pleased to answer your questions even if you go on a different path.