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Selling an inherited property requires following various legal, tax, and registry procedures. Lack of knowledge or incorrectly handling these steps can negatively impact the sale, causing delays or even blocking the transaction.
Ensuring the entire process is correctly followed involves having expert advice to facilitate a quick and secure sale upon completion. Below are the essential procedures to consider to make the sale of an inherited property as smooth as possible.
Formalize the Acceptance of the Inheritance
Before accepting the inheritance, it is necessary first to obtain a literal death certificate (issued electronically by the Ministry of Justice to interested parties) to request the certificate of last wills and the life insurance contract certificate through the Ministry of Justice using a digital certificate. This allows verification of whether the deceased left a will and before which notary, which is key to continuing the procedure. If there is no will, a declaration of heirs ab intestato must be processed before the competent Notary at the deceased’s last domicile.
Subsequently, the inheritance must be formally accepted before a notary through a public deed or legally valid document. This procedure converts the heirs into owners of the property and thus allows them to transfer it to another party through a sale.
Without this acceptance, the property cannot be registered in the heirs’ name, preventing the subsequent sale.
Settle the Inheritance and Gift Tax
Each inheritance transfer generates two tax obligations. First, the payment of the Inheritance Tax. This procedure varies by Autonomous Community, with possible exemptions or tax reductions. Still, it is a mandatory step even if no amount is payable. The second obligation is to settle the tax on the increase in value of urban land (formerly known as the “plusvalía”) before the City Council where the inherited properties are located.
The deadline to settle both taxes is six months from the date of death.
Having expert advice is crucial to avoid errors in the declaration, benefit from possible tax advantages, and avoid delaying the rest of the operation.
Register the Property in the Heirs’ Name
After accepting the inheritance and settling the related tax obligations, the property must be registered in the heirs’ names in the corresponding Property Registry.
A property not properly registered in the heir’s name cannot be sold or may cause doubts during negotiation, which can lead to losing the buyer.
Review the Cadastre Data
It is important to verify that the Cadastre data matches the Property Registry data and the actual property. Discrepancies can cause problems or delays when selling.
Check the Property’s Liens and Payments Status
Before putting the property on the market, it is essential to verify that it is free from liens or debts. Items to review include the status of the Property Tax (IBI), utility bills, homeowners association fees if applicable, or any possible charges such as outstanding mortgages.
The existence of liens can hinder and complicate the sale process, and may also affect the market price of the property.
Obtain the Energy Certificate
Prior to selling the property, it is mandatory to have the energy efficiency certificate and the habitation certificate to deliver to the buyer.
When accepting the inheritance of a home, correctly setting its value is a key step that is often overlooked. That value not only determines the taxes to be paid at that moment but also directly affects the sale later on.
If a value below the real market value is declared, you may pay less tax when inheriting, but upon selling, the Tax Agency may consider you have made a much larger gain and demand tax on it, even if no real profit was made.
Therefore, it is essential to have advice from a real estate professional. Only with a market-adjusted valuation can fiscal problems be avoided and a smooth subsequent sale guaranteed.
These are the main procedures that must be carried out to sell an inherited property. The involvement of professionals specialized in inheritance law and real estate management is key to speeding up timelines, reducing errors, and resolving any complex situation before it becomes an obstacle to the sale.
This legal and technical support from the early stages of the process allows anticipating requirements, preparing the appropriate documentation, and conveying greater confidence to the buyer.
It should be noted that each process is different and presents its particularities—factors such as whether there is a single heir or multiple heirs (in which case consensus is needed to sell or additional procedures and processes may arise) affect each inheritance and sale.
Therefore, selling an inherited property involves more than just the intention to sell. It requires a series of legal and administrative steps that must be well coordinated. Proactive, well-documented management backed by professionals can make the difference between a smooth sale and a transaction frustrated by delays or irregularities.
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