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A guide to selling a property as an executor
- 2019/08/19
- 再生時間： 16 分
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If you are named as an executor in someone’s will, you have a lot of duties and responsibilities placed upon you.It will fall to you to gather in and value the assets of the estate, pay off any debts and liabilities, calculate and pay any inheritance tax (IHT) that is due – and distribute the estate in accordance with the will.In addition, unless the beneficiaries named in the will wish to have the deceased’s property transferred into their names, you as the executor will need to sell it.Selling property as an executor is slightly different from the usual process, so how should you go about it to ensure things run as smoothly as possible?1. Obtain a Grant of ProbateIf the deceased owned property in the sole name, when selling property as an executor, you will need to get what is known as a ‘Grant of Probate’.This is a legal document issued by the court which confirms the validity of the will and names the executor who has the legal authority to deal with the deceased’s assets.This includes the legal authority to enter into and sign contracts on behalf of the estate, such as the contract to sell a house.As an executor, you need to be aware that obtaining a Grant of Probate can take potentially 12 weeks or more, so bear this in mind when looking to sell a property.2. Get the property valued As part of the process of applying for the Grant of Probate, you will need to get a valuation for the deceased’s property – or properties.This should reflect the value of the property at the date the owner died, rather than the actual selling price.You can do this via a surveyor, or via an estate agent.3. Check the title and deedsAt this stage, you should also check the property’s title. You should be able to do this with the Land Registry.You should then get a solicitor to check the title entries to see if there are any restrictions affecting the property – or defects in the title – which may need addressing before the property can be sold.For example, there could be an outstanding mortgage you were not initially aware of even someone else owning a share in the property. 4. Can the executor sell property without all beneficiaries approving?Unless the will states something to the contrary, there are no special provisions made for the beneficiaries to sign-off on a property sale.However, it is always advisable to have open and clear communication from the outset, and a written agreement if necessary.If the home is sold for less than a reasonable market value then disgruntled beneficiaries do have the option to sue to executor, adding additional stress to an already tricky situation.5. What are your options for selling property as an executor?Put it on the market with a traditional estate agentWhen you get the property valued as part of the applying for Grant of Probate, you can talk to the estate agent about putting the property on the market.ProsYou should be able to get a fair price for the property, and especially if you’re not in a hurry to sell.ConsYou will have to deal with the property-selling process, including the to-ing and fro-ing between solicitors and estate agents, yourself. This can be stressful and time-consuming.Use a quick house sale companyIn recent years, there’s been an influx of so-called ‘quick house sale’ companies which claim to sell your home fast. They do this by buying the property directly or finding a third party buyer very quickly.Pros– The property being sold fast can be an appealing option when you’re trying to dispose of a deceased’s home.– Firms may pay solicitor and search fees, meaning you don’t have to worry about these costs.– You get paid in cash. Cons– These firms usually buy at a discounted rate, which could be as much as 25%.– There is the risk of the price being reduced at the last minute.– Fee structures are not always transparent.– The quick house sale market isn’t regulated, so you aren’t protected when selling a property to one of these companies.Tips when using a quick house sale companyMake sure you obtain a valuation from two or three estate agents, so you can work out whether you are getting a fair price form the quick house sale company.Look for quick house sale company which is a member of the National Association of Property Buyers.Get everything in writing.Don’t be rushed into a decision.Read your agreement carefully so you know exactly what you’re getting into.Don’t feel pressured into using a legal representative the firm recommends. Find you own solicitor.6. Obligation to sell for the open market valueIrrespective of which route you choose to sell the property, as an executor, you are under an obligation to sell for the open market value.If you sell for less than this, a beneficiary can look to you for the difference in value. Bear this in mind before accepting a low offer in a bid to shift the property quickly.7. Be realistic about timescalesWhile there is nothing to stop you putting the ...