Inheriting a home in Michigan comes with emotional and financial responsibilities. Probate, taxes, and property title issues can all affect how and when you can sell. Working with our Troy, MI real estate lawyer can help you stay on track and avoid costly mistakes.
Whether you plan to sell the property quickly or take your time deciding, it’s important to understand the legal steps involved.
The Process Of Selling An Inherited Home
- Check The Status Of The Estate. Before you can sell an inherited home, make sure the estate has gone through or is going through probate. Probate is the legal process for distributing a deceased person’s assets. If the home was in a trust, or titled with joint ownership and rights of survivorship, it might not need to go through probate. Otherwise, the probate process is usually required to legally transfer the property to the heir or heirs. This step must be completed before a sale can take place.
- Determine Who Owns The Property. If multiple people inherited the home, all heirs typically must agree to the sale. This can sometimes lead to disagreements, especially if some heirs want to keep the home while others want to sell. It’s best to communicate openly and document any agreements in writing. If consensus can’t be reached, a court may need to step in.
- Transfer The Title Into Your Name. Once probate is complete, the property title needs to be transferred to your name (or the names of all heirs). Without this transfer, you won’t be able to legally sell the home. A deed transfer is usually filed with the local county register of deeds. You may also need to provide a certified copy of the death certificate and court-issued documents showing your legal right to the property.
- Review The Condition Of The Property. Before listing the home, assess its condition. Inherited homes are sometimes outdated or in need of repairs. Decide whether to sell the property as-is or invest in improvements to help increase its value. Be aware that as a seller, you may be required to disclose known defects under Michigan law. A pre-sale inspection can help you identify any major issues ahead of time.
- Understand Tax Implications. Selling an inherited home may trigger tax consequences. In most cases, the home’s value is “stepped up” to its fair market value at the time of the original owner’s death. This usually limits the capital gains tax due when the home is sold. However, it’s important to keep records of the sale and speak with a tax professional about your specific situation.
- Stay Organized And Be Patient. Selling an inherited home takes time. Be prepared for delays related to probate, paperwork, or family decision-making. Keep detailed records of all expenses, documents, and communications. Staying organized helps you move forward with fewer surprises along the way.
Work With A Real Estate Agent Or Attorney
Selling inherited property involves more than just putting the home on the market. It’s often beneficial to work with a real estate agent who understands probate or inherited property sales. You may also want experienced legal guidance to review offers, prepare disclosures, and manage title issues. This is especially true if there are co-heirs, tenants living in the home, or unresolved debts attached to the estate.
If you’ve inherited a home in Michigan and aren’t sure where to begin, we’re here to help. At Gudeman & Associates, P.C., we work with clients to make the legal side of selling inherited property clear and manageable. Contact us today for a free consultation to discuss your next steps and how we can support you.
