Probate Sale and Purchase: Top Tips
- A probate sale happens when the owner has died. The seller should have a Grant of Probate or a Letter of Administration before they market the property, but they most commonly don't. This means they don't have the legal authority to exchange or sign any documents until they do.
- Probate properties cannot be sold without a Grant of Probate or Letter of Administration unless the joint tenant of the deceased is selling the property.
- It can take up to 16 weeks to obtain a Grant of Probate or Letter of Administration and it can only be submitted once all assets and liabilities have been compiled and inheritance tax declared.
- The seller can and should answer 'Do Not Know' to any questions they don't have reliable answers to. This is known as a limited title guarantee, meaning the seller has limited knowledge of the property and cannot give a full title guarantee. Prospective buyers must investigate with a house survey and property searches.
What is a probate house sale?
Probate is a term which refers to the legal process around the management of a deceased person's assets and their estate, which often includes property.
A house sale sold by someone with 'probate' is the legal right to deal with the estate, including the sale of the house(s). This means they were not the owner occupier.
Probate law applies to the estate administration process, so it involves much more than just probate house sales. We focus on selling a house in probate and buying probate property in this article.
Avoid the high form submission error rate
There is a significant error rate in probate and inheritance forms submitted to HMRC. This is often due to individuals attempting to complete these forms themselves, without seeking professional guidance from a solicitor.
Instructing a solicitor can help to minimise errors and ensure that the forms are completed correctly, potentially saving time, money, and stress in the long run.
SAM's solicitors are experienced in probate and will advise you on the best course of action. Contact us for your FREE* 15-minute consultation below.
Stages of probate - the probate process
Death and Notification
- A doctor must certify the death.
- The death must be registered with the local registrar.
Will or No Will (Intestacy)?
- If a valid will exists, the executor(s) named in it will usually initiate the probate process.
- If there's no will, the next-of-kin will typically be appointed as the administrator.
Gathering Information
- The executor or administrator must identify and locate all the deceased's assets, including property, bank accounts, investments, and personal possessions.
- The title and deeds of the property are important as they confirm property ownership and if there are any restrictions or charges against the property at the Land Registry.
- Any debts or liabilities must be identified.
Valuation
- Assets, especially property, need to be valued. This is always done by a RICS-accredited surveyor.
- An executor can provide an initial valuation themselves, but HMRC might challenge this valuation if they believe it is too high or too low. The value of the property affects the amount of Inheritance Tax payable.
Application for Probate
- Form IHT-400: This form is submitted to the Probate Registry, along with supporting documents like the death certificate, will (if applicable), and valuations. This form needs to be submitted regardless of whether there is or isn't Inheritance Tax payable.
- If the application is successful, the Probate Registry will issue a Grant of Probate, which gives the executor or administrator the legal authority to manage the estate.
- It's highly recommended to enlist the services of an experienced solicitor to handle this for you.
Dealing with Debts and Taxes
- Debts are paid off, usually from the estate's assets.
- Inheritance Tax (IHT) may be payable, depending on the value of the estate.
Distribution of Assets
- If a will exists, the assets are distributed according to the instructions in the will.
- If there's no will, the assets are distributed according to the intestacy rules, which determine who inherits based on their relationship to the deceased.
Closing the Estate
- The executor or administrator must submit final accounts to the Probate Registry, showing how the estate's assets were handled.
- Once the accounts are approved, the estate is officially closed.
Book a FREE 15-minute meeting* with a specialist probate solicitor.
They'll listen to your issue and suggest ways forward, including the costs, with no obligation to use our services after the free meeting.
- What are my responsibilities?
- What forms do I need to submit to HMRC?
- How do I get the title deeds?
- How much inheritance tax (IHT) is payable?
Tips for buying a house in probate
You're not dealing with the previous owner, but the person administrating their estate. Unless the deceased had everything in order before they passed away, you may find that lots of information about the property has been lost.
You should be compassionate with the seller, who is grieving, and be patient as probate house sales can run into delays.
Grant of Probate
When someone dies, their house cannot be sold until the grant of probate. You can't speed up the seller's application, but you can ask the estate agent early on if they have a grant of probate.
If yes, then there is no time delay. If the answer is no, then you need to ask if they have made the application to the probate registry.
Probate Valuation
As a buyer, probate valuation is irrelevant. You'll pay based on the current market value but be sure to compare similar properties to ensure your offer is fair.
Probate House Sale Process
In the UK, you buy the property 'Caveat Emptor' or buyer beware; taking on full responsibility for any issues with the property from the point of exchange of contracts.
This means that if there is an issue with the property in the future, like if there was no building control sign-off for an extension or if the boiler breaks, then you have no legal recourse over the seller (unless they made false representations to you).
You must get as much information from the seller as possible - this could mean the seller getting retrospective building control sign-off or a boiler service/check at the seller's own cost.
If they are not willing to do so, you may be able to negotiate for a lower purchase price based on the risk you're taking by buying without all the relevant information.
We always recommend a RICS house survey on a property purchase. When buying a house in probate, this is even more crucial. Get an expert to inspect the property to avoid any nasty, dangerous, and often expensive defects which may not be apparent until it is too late.
Tips for a probate property sale
As the seller, you'll be dealing with the loss of someone who was likely close to you. This can be a difficult time, so it is important to choose the right solicitor for the probate house sale to help to keep your stress to a minimum.
You'll have to deal with the complexity of obtaining a Grant of Probate or Grant of Letters of Administration, valuing the property and facing enquiries from the seller which you may not be able to answer.
If you and the deceased owned the property as Joint Tenants, you won't need a Grant of Probate.
Grant of Probate
You'll need to get authority to handle the probate house sale, via a Grant of Representation (also known as a Grant of Probate) if you are an executor and there is a will; or, via a Grant of Letters of Administration if you are an administrator and there is no will (this is called intestate).
The application to get a grant, whether you have a will or not, is the same and can take time, as you need to:
- Complete a Probate Application Form PA1.
- Complete an Inheritance Tax Form (Important - Whether you have inheritance tax to pay or not, you'll still need to complete an Inheritance Tax Form and submit it to the HMRC).
- Send your application to your local probate registry.
- Swear an oath.
You have to pay inheritance tax due no later than 6 months after the death, otherwise, interest is payable.
This could mean paying out before the estate assets have been sold. If you do not have the liquid funds to pay the IHT due, try to begin the process as early as you are able.
The process to get the grant after application is around 10 working days; however, it can take months to prepare the probate application form and inheritance tax forms, especially if there are several different assets to find or if the estate is intestate.
House Valuation for Probate Sales
You'll need to get a valuation for the property from a qualified RICS valuer who will calculate the value at the time of death as this is used in the calculation for Inheritance Tax.
This is not always easy as the housing market in many areas fluctuates, so choose a RICS valuer who has good local knowledge to give an accurate valuation for your probate home.
We have a nationwide panel of local surveyors available to provide a probate valuation. Complete our simple form for a competitive quote.
Property Information
Executors of the estate will complete the Property Information Forms (TA6 Property Information and TA10 Fittings and Contents) to the best of their knowledge.
These forms include other property-related documents such as boiler maintenance certificates, electrical works invoices, FENSA certificates, planning permissions, and building control sign-off.
You might be unable to answer many of the questions and may not have the supporting legal documents required. It is common for a representative to tick 'Do Not Know' for many of the answers within the property information forms.
Your buyer's solicitor should have made it clear to them that this is fairly standard when buying a probate property, and they will need to conduct searches and surveys to satisfy their enquiries.
Do not give information in the property information forms if you are not certain, or you could become liable for misrepresentation of the property.
How long can it take to sell a house through probate?
The timings for probate processing vary with the probate office and can be influenced by the complexity of the estate.
- For simple estates with no complications, the probate process can take approximately 4-6 weeks.
- More complex estates, such as those involving disputes, foreign assets, or large estates, may take up to 16 weeks.
Key points to remember
- Before completing a property sale, you need a Grant of Probate or Letter of Administration, which can take anywhere from a few weeks to 16 weeks.
- Before receiving the Grant of Probate or Letter of Administration, you can have your property valued and put on the market.
- However, you cannot legally exchange contracts until the Grant of Probate or Letter of Administration is issued.
- Once the probate is granted, the property sale process can typically proceed at a similar pace to a regular property sale, taking around 4-6 weeks from offer acceptance to completion.
How long does probate take when buying a house?
As a buyer, you'd hope that the property wouldn't be marketed until the executors had legal control over the asset to allow them to sell.
Sadly, and most commonly, executors look to first market the property to get the ball rolling, and then seek a Grant of Representation or Grant of Letters of Administration afterwards.
Need help with probate?
The process of selling or buying a probate property is not standard compared to standard conveyancing so you will need support.
We have solicitors who specialise in probate and work to a fixed fee quote. If you'd like to discuss this further, call 0333 344 3234 or click get a free, no-obligation quote below.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
