Accept inherited property or reject the inheritance? The extract from the land register will provide you with information!
It makes sense for you as an heir to deal with the inherited property promptly. To do this, you should consult the land register extract. This document is a very important source of information. Here you will find the rights, the obligations and the liabilities associated with the inherited property. We will be happy to support you in obtaining and analysing the land register extract.
As a rule, you only have six weeks to disclaim the inheritance after becoming aware of the inheritance. The time limit is extended to six months if the heir was abroad at the time or if the deceased had his or her last residence abroad. You should therefore not lose any time in considering your inheritance. The declaration to disclaim the inheritance must be made in writing to the deceased's probate court.
The first step to selling the inherited house or flat: The certificate of inheritance
As a rule, you need a certificate of inheritance to prove that you are the rightful heir. There are two exceptions: If there is a certified will or if there is a notarised contract of inheritance, a certificate of inheritance is not necessary. You apply for the certificate of inheritance directly at the competent probate court or via a notary. The issuing of the certificate of inheritance costs fees. For example, for an estate value of 500,000 euros, the fees are approximately 1,900 euros.
It can take some time for the probate court to issue the certificate of inheritance. It is therefore advisable to apply for it in good time. Only when the certificate of inheritance has been issued can you be registered as the new owner in the land register. If this is done within the first two years after the inheritance, no fees are charged.
Get an overview & check the inherited property thoroughly
There are many factors that influence the value of your property. First and foremost, one thinks here of the location and size. However, it is also important that you correctly assess the condition of your house or flat. Is there any urgent repair work to be done? What modernisation measures are pending? Can and do I want to afford them? Answering these questions will make it easier for you to decide whether to sell or keep the property.
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Selling a house, flat or plot of land as a community of heirs
There are always tensions in a community of heirs if the participants have very different interests. In the worst case, the jointly inherited property is threatened with compulsory auction. All that is needed is for one co-heir to apply for compulsory auction. In this case, the proceeds are usually considerably lower than the market value. As a neutral third party, we can show you proven solutions to harmonise the interests of all co-heirs.
These taxes apply when selling an inherited property
In principle, every heir has the obligation to pay inheritance tax. The amount of the tax burden depends on the value and the degree of kinship of the heirs. Depending on the relationship, there are allowances for which no inheritance tax is due.
Allowances according to relationship:
Tax class I
- Spouses and registered partners: € 500,000
- Children, stepchildren and adopted children, children of deceased children: € 400,000
- Grandchildren: € 200,000
- Parents, grandparents, great-grandparents, great-grandchildren: €100,000
Tax class II
- Siblings, children of siblings: € 20,000
Tax class III
- All other heirs: € 20,000
You only have to pay inheritance tax on the part of the inheritance that exceeds your tax-free amount. The tax rate depends on the value of the inheritance after deduction of the tax-free amount and on the tax class. For an amount up to €75,000, the tax rate in tax classes I, II and III is 7, 15 and 30% respectively. The tax rates increase for higher amounts and reach a maximum of 30%, 43% and 50% in the three respective tax classes.
When selling your inherited property, you should also check whether speculation tax is due. If this is the case, the tax payable is calculated from the difference between the original purchase price and the sales price.
The obligation to pay speculation tax does not apply if the deceased acquired the property ten years before the sale. This means: The ten-year period does not start anew with the inheritance! Rather, the time of the notarised purchase contract at which the deceased had bought the property counts.
Also, if you have permanently occupied the inherited property yourself for at least two years prior to the sale and in the year of the sale, or if your child was allowed to live there permanently free of charge during this period, the speculation tax does not apply.
The real estate sale: How to sell your inherited property with success
What to do next once you have decided to sell your inherited property?
You will only sell your property at a fair market price if the sale is very well planned in the first step. The subsequent step, the implementation of the strategy, must also be worked out in detail. It is about the following topics, for example:
- Compilation of all documents
- Determination of the correct market price
- Definition of the buyer target groups
- Creation of an appealing and legally compliant exposé
- Efficient management of the tours
- Quick answers to questions from prospective buyers
- Preparation of the notary contract
Would you like more tips for a successful property sale? We would be happy to show you the building blocks for making the sale of your house or flat a success.
When you inherit and sell a property, you have to consider many legal, tax and economic aspects. Now you have an initial overview of the tasks that await you.
Do you have further questions? Do you need someone to listen to you and help you sort out your needs and ideas? Would you like to know the value of the property you have inherited?
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