Accept inherited property or reject the inheritance? The extract from the land register provides you with information!
As an heir, it makes sense to deal with the inherited property in a timely manner. To do this, you should consult the extract from the land register. 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 assist you in obtaining and analyzing the extract from the land register.
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 residing abroad at the time or the decedent had his or her last residence abroad. You should therefore lose no time in considering your inheritance. The declaration to disclaim the inheritance must be made in writing to the decedent's probate court.
The first step to selling the inherited house or apartment: 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 notarized inheritance contract, a certificate of inheritance is not necessary. You apply for the certificate of inheritance directly at the responsible probate court or through a notary. The issue of the certificate of inheritance costs fees. For an estate value of 500,000 euros, for example, these are around 1,900 euros.
The issuance of the certificate of inheritance by the probate court can take some time. It is therefore advisable to apply for it in good time. Only when the certificate of inheritance has been issued can you register yourself 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 of all, one thinks here mainly of the location and the size. However, it is also important that you correctly assess the condition of your house or apartment. Is there any urgent repair work to be done? What modernization 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, apartment or land as a community of heirs
In a community of heirs, there are always tensions if the participants have very different interests. In the worst case, the jointly inherited property is threatened with foreclosure. 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 harmonize the interests of all co-heirs.
These taxes are due on the sale of an inherited property
Inheritance tax
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, 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.
Speculation tax
When selling your inherited property, you should also check whether speculation tax is due. If this is the case, the tax to be paid is calculated from the difference between the original purchase price and the sale price.
The obligation to pay speculation tax does not apply if the testator acquired the property ten years before the sale. This means that the ten-year period does not start anew with the inheritance! Instead, the date of the notarized purchase agreement at which the testator 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 should you do next if 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 next step, the implementation of the strategy, must also be worked out in detail. This involves 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.
Conclusion
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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