What Documents Are Required for Selling an Inherited Property?
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Richard Haddad Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
Selling inherited property can feel overwhelming, especially if the home is out of state. Multiple heirs may be trying to make decisions, and family emotions can run high. What you don’t need are roadblocks from not having all the documents required for selling an inherited property.
In this guide, we’ll provide a simple, at-a-glance list of what documents you might need to sell an inherited property. We’ll also provide tips on how to sell your inherited home fast to a cash buyer.
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Editor’s note: This post is for educational purposes. If you need assistance identifying specific documents required for selling your inherited property, HomeLight encourages you to consult a professional advisor.
What documents are required for selling an inherited property?
When selling an inherited property, you’ll need various documents that establish ownership and selling authority, confirm property details, and address any outstanding legal or financial obligations.
Below is an overview of nine categories of documents that may be needed or helpful to sell an inherited property. Each category includes specific documents to verify your authority and ensure a smooth sale process.
1. Proof you inherited the property
Establishing legal authority to sell an inherited property starts with demonstrating your inheritance. Key documents include:
- Copy of the deceased’s will: This document clarifies the intentions of the deceased regarding property distribution.
- Letters Testamentary: These legal documents are granted to the executor or personal representative, affirming their authority to manage the estate.
- Letters of Administration: If no will is present, these letters serve as a court-issued document to designate an estate administrator.
- Affidavit of Heirship: Used in cases without probate, this document helps transfer ownership in some states by identifying heirs.
- Other probate documents: Copies of court orders or judgments related to the estate may be required, especially in complex probate cases.
2. Current property ownership documents
You’ll also need documentation to prove property ownership:
- Property deed and title documents: These establish legal ownership. The deed is a physical document that proves ownership. The title is the concept of legal ownership granted by the deed.
- Title search documents: These ensure the title is free of liens or disputes, often accompanied by a title insurance policy.
- Any previous deeds or title transfer records: Records of past transfers may be necessary or helpful to show a clear chain of ownership, especially if there is an ownership dispute.
3. Proof of executor authorization
In addition to proof of ownership, you may need documents showing you have the legal authority to sell the property:
- Certified Power of Attorney documents: If applicable, these give you legal authority to act on behalf of the estate.
- Records authorizing the home sale: Any additional records, such as court orders, that explicitly authorize the sale.
4. Existing home loan documents
If the inherited property has outstanding loans, gather these documents:
- First mortgage documents: These may include the mortgage loan agreement, promissory note, and mortgage or deed of trust.
- Any second mortgage documents: Documents for any home equity loan or HELOC associated with the property.
- Loan payoff statements: These statements, provided by the lender, detail the loan balance owed.
- Satisfaction of mortgage document: This document, also known as a mortgage lien release, confirms the loan has been paid off.
5. Property value documents
Determining the property’s value is essential when selling an inherited home. These next documents offer insight into its current worth and historical appraisals:
- Date of death appraisal: Also called the date of death valuation, this appraisal provides the property’s value at the time of the previous owner’s passing, which may impact tax basis.
- Prior professional appraisals: Any previous appraisals offer a formal record of the property’s value over time.
- Comparative market analysis (CMA): Often performed by real estate agents, a CMA provides a price estimate based on recent sales of similar properties in the area.
- Other valuation documents or reports: Additional records or reports that assess the property’s worth may also be useful.
Get a free home value estimate: Curious about what your inherited home might be worth? HomeLight’s Home Value Estimator uses local market trends, transaction data, and public records to provide an estimate in minutes. Answer a few questions about the property to get started now.
6. Tax documents related to the property
These tax documents can help ensure you’re aware of any outstanding taxes and provide information for tax reporting:
- Property tax records: Gather available tax bills, payment receipts, and tax assessment records to confirm any taxes due or paid on the property.
- Estate tax returns: If estate taxes apply, these returns or records will be necessary for tax reporting.
- Estate planning documents: If applicable, documents like the Transfer on Death Deed clarify ownership transitions and may affect tax status.
7. Home repair, improvement, and inspection records
Providing documentation of the property’s upkeep, repairs, and improvements can reassure buyers and increase the home’s marketability:
- Repair records and receipts: These confirm any repairs made to the home, which may indicate well-maintained systems or recent fixes.
- Major home improvement records and receipts: Include documents for significant renovations, like additions or remodeling projects, that may add value.
- Property maintenance records: Regular maintenance records can assure buyers of ongoing care.
- Home inspection reports: Recent or previous inspection reports may identify the home’s current condition and any potential issues.
8. Homeowners or community association documents
If the inherited property is part of a homeowners or condo association, you’ll need documents related to association policies and dues:
- HOA or condo association documents: These include HOA bylaws, covenants, and rules governing the community, essential for potential buyers to review.
- Documents proving HOA payments and compliance: Payment receipts and compliance records verify that HOA dues and fees are up to date and that the property adheres to association guidelines.
Documents after selling an inherited property
Once the sale is complete, a few final documents wrap up the transaction and confirm the transfer of ownership:
- Sale closing or settlement statement: This statement provides a detailed summary of the financial aspects of the sale, including the sale price, closing costs, and other fees.
- Escrow documents and instructions: Escrow documents outline the terms and conditions for holding funds during the sale and ensure all parties meet their obligations.
- Final transfer of ownership documents: These include the final deed or title transfer documents, confirming the official transfer of ownership from the seller to the buyer.
Sell your inherited house fast with a cash offer
If you’re looking to streamline the sale of your inherited property, opting for a cash offer can be a quick and convenient solution. Cash buyers often handle many of the sale’s complexities, so you can avoid the usual steps and move on faster.
For a straightforward process, consider Simple Sale by HomeLight, where you can receive a no-obligation cash offer in 24 hours and skip repairs, showings, and long wait times.
If you accept the offer, you can close the sale in as few as 10 days. This can be especially helpful if you are trying to manage the sale from out of state or if the cost of maintaining the property is a financial burden. To get started, tell us about the inherited property and your selling timeline.
Sell your inherited property with a top agent
Working with a top real estate agent can make all the difference when selling an inherited property. A qualified agent helps you navigate the sale, manage paperwork, and get the best possible price.
Ready to connect with a trusted professional? Try HomeLight’s free Agent Match platform to find a top-rated agent in your area who can guide you through every step of the sale.
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