Selling inherited property can feel overwhelming, especially if the home is out of state. Multiple heirs may be trying to make decisions, and family emotions can run high. What you don’t need are roadblocks from not having all the documents required for selling an inherited property.
In this guide, we’ll provide a simple, at-a-glance list of what documents you might need to sell an inherited property. We’ll also provide tips on how to sell your inherited home fast to a cash buyer.
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What documents are required for selling an inherited property?
When selling an inherited property, you’ll need various documents that establish ownership and selling authority, confirm property details, and address any outstanding legal or financial obligations.
Below is an overview of nine categories of documents that may be needed or helpful to sell an inherited property. Each category includes specific documents to verify your authority and ensure a smooth sale process.
1. Proof you inherited the property
Establishing legal authority to sell an inherited property starts with demonstrating your inheritance. Key documents include:
- Copy of the deceased’s will: This document clarifies the intentions of the deceased regarding property distribution.
- Letters Testamentary: These legal documents are granted to the executor or personal representative, affirming their authority to manage the estate.
- Letters of Administration: If no will is present, these letters serve as a court-issued document to designate an estate administrator.
- Affidavit of Heirship: Used in cases without probate, this document helps transfer ownership in some states by identifying heirs.
- Other probate documents: Copies of court orders or judgments related to the estate may be required, especially in complex probate cases.
2. Current property ownership documents
You’ll also need documentation to prove property ownership:
- Property deed and title documents: These establish legal ownership. The deed is a physical document that proves ownership. The title is the concept of legal ownership granted by the deed.
- Title search documents: These ensure the title is free of liens or disputes, often accompanied by a title insurance policy.
- Any previous deeds or title transfer records: Records of past transfers may be necessary or helpful to show a clear chain of ownership, especially if there is an ownership dispute.
3. Proof of executor authorization
In addition to proof of ownership, you may need documents showing you have the legal authority to sell the property:
- Certified Power of Attorney documents: If applicable, these give you legal authority to act on behalf of the estate.
- Records authorizing the home sale: Any additional records, such as court orders, that explicitly authorize the sale.
4. Existing home loan documents
If the inherited property has outstanding loans, gather these documents:
- First mortgage documents: These may include the mortgage loan agreement, promissory note, and mortgage or deed of trust.
- Any second mortgage documents: Documents for any home equity loan or HELOC associated with the property.
- Loan payoff statements: These statements, provided by the lender, detail the loan balance owed.
- Satisfaction of mortgage document: This document, also known as a mortgage lien release, confirms the loan has been paid off.
