Selling an inherited property can become an emotionally complex process for heirs, but with proper planning, a successful transaction can be achieved without future complications. Here’s the quick guide you can’t afford to miss:
Accepting the inheritance: Crucial initial step
Before initiating the sales process, it is imperative to follow a series of formal steps, starting with accepting the inheritance. This requires the submission of specific documents, such as the death certificate, certificate of last wills, and, if available, the deceased’s will. Depending on the existence of a will, the notary will either inventory assets and debts or determine legal heirs, generating an inheritance partition deed.
Once the inheritance is accepted, associated taxes must be addressed, including the Inheritance and Donations Tax, payable within six months of the deceased’s passing, and the municipal capital gains tax, calculated on the increased value of urban land. With the new partition deed, it is possible to change property ownership in the Property Registry, following payment of the corresponding taxes.
Sale of the inherited house: Coordination and preparation
After accepting the inheritance, settling taxes, and completing necessary changes, the property becomes owned by the heirs in the agreed proportion. At this point, effective coordination among heirs is crucial for proceeding with the sale. Transparent communication is essential, and seeking professional advice can prevent conflicts. Evaluating the property and setting an appropriate market price are fundamental steps.
Additionally, preparing the house for sale, including cleaning and basic repairs, makes it more appealing to potential buyers. Transparency about legal status and having all documentation in order are key aspects during negotiations involving multiple buyers and heirs. Flexibility and negotiation are critical for both price and sales conditions.
Upon reaching an agreement, a sales contract is formalized, detailing the agreed-upon conditions and the rights of the heirs.
Conflicts among heirs: Resolution through dialogue and legal options
Inheritances often give rise to conflicts among heirs. The recommendation is to engage in dialogue with empathy and kindness to reach amicable agreements. While legal confrontations should be avoided, options exist in case of disagreement.
Extinction of joint ownership, sale of undivided shares (proindiviso), and common property division are legal alternatives to resolve disputes, enabling each heir to freely dispose of their portion.
Frequently asked questions: Clarifying common concerns
As of September 2021, there is no legal deadline for selling an inherited house in Spain, providing greater flexibility. In cases where one heir resides in the inherited property without an agreement, an eviction action for precarious possession can be initiated to resolve the situation.
In summary, selling an inherited property involves careful steps from accepting the inheritance to effective coordination among heirs, preparing the property, and resolving potential conflicts with empathy and legal options. This challenging process can be successfully navigated with proper guidance.
At Living Sitges, we can assist you in negotiations, and we recommend heirs to entrust the entire process to a real estate agency, ensuring a seamless transaction without any concerns.
Article by Living Sitges