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How is the process of selling an inherited house?
The process of selling an inherited house tends to be perceived as a lengthy process, but in reality, it is not very different from selling a real estate property. It is only necessary to have all the documentation up to date and that all the heirs participate.
Step 1
Gather all documents
To carry out all the formalities to be able to accept the inheritance.
Step 2
Acceptance of the inheritance by heirs
All heirs must accept or reject the inherited property.
Step 3
Payment of taxes
Perform the liquidation of all inheritance taxes.
Step 4
Registration of the dwelling in the land register
Fundamental if you want to sell your home.
Step 5
Selling the inherited house
Forget the worries of putting an inherited house for sale, we take care of it.
Step 6
Settlement of taxes on the sale of inherited house
Payment of taxes on the sale of the inherited property.
In order to be able to sell the inherited house, it is necessary to complete all the procedures to accept the inheritance. A series of documents and certificates must be requested for this purpose: death certificate, certificate of last will and testament and authorized copy of the will, in case it exists, or declaration of heirs.
After the sale of an inheritance, two taxes must be paid: personal income tax (IRPF) and municipal capital gains tax (plusvalia municipal). If it is an inheritance of several persons, such taxes will be paid proportionally to what each heir received.
After getting all the documentation, the next step is for all the heirs to accept or reject the inheritance. The existence or not of a will comes into play in this step.
If there is a will, it will be necessary to collect all the data of the heirs and the inventory with the information of the items to be inherited by the deceased. These shall be distributed as stipulated in said will.
If there is no will, it will be necessary to make a declaration of heirs so that the notary can determine who the heirs are according to the law.
If any of the heirs wants to reject part of his inheritance, the rest of the participants can go to a notary in order to request an act of notification. In it, the notary notifies the need for presentation of the heir in question within 30 days of receipt of the deed accepting or rejecting his or her share. The absence of a response is considered as accepted by default.
When inheriting real estate the taxes that must be paid are:
Inheritance tax: This is the tax levied on the transfer of assets and duties upon the death of a person free of charge. It must be paid at the competent tax office of the community where the deceased resided.
Municipal capital gains: This tax is levied on the increase in the value of the land from the acquisition of the property by the deceased until it is received by the inheritance. It is payable at the town hall where the property is located within six months after the death, with a possible extension of another six months.
This step is not a mandatory action by law, but it is a recommended step if you want to sell the property, as it gives a legal framework to the transfer. Upon request for registration with the pertinent documentation, the Registry will have a period of 15 days to carry out the request or to notify the existence of any problem that prevents its completion.
The estate sale process is no different from the normal sale process. The property is visited and appraised, a sales plan for the property is drawn up, it is shown to potential buyers and the sale is closed with the relevant documentation within the legal framework. In this case, what may be different is the number of owners of the property. Having a professional to mediate in such a situation is always appreciated.
How can Inversión Madrid help you?
In Inversión Madrid we offer you the management and advice of the whole process of selling an inherited property.
We work with the best lawyers and take care of all the necessary documentation for the acceptance of the inheritance, the change of ownership, the registration of the property and the management of the payment of taxes.
Once all the steps related to the inheritance have been completed, we take care of the sale of the property: sale plan, visits to potential buyers, drafting and negotiation of the contract.
How long does it take to sell an inherited property?
Following the repeal of article 28 of the Mortgage Law, there have been changes. Those who have received a home in inheritance after September 3, 2021 do not have to wait a while to sell it.
However, the retroactive nature of this measure does not exist in practice, so that if a non-forced heir has received a property before that date, it will be necessary to wait at least two years to make the transfer.
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