Buying A House When The Owner Dies

Fortunately, the situation where the seller/owner dies before completing the sale of their house isn’t common at all. But, it is an eventuality that isn’t impossible, and it has happened before.

For buyers who find themselves in this circumstance, it can be confusing and mean they have many questions on what happens next.

If the deceased was the sole owner

The Grant of Probate (if there is a Will) or the Letters of Administration (if there is no Will) will need to be obtained in order to sell the property. This means the executors of the Will or the Administrations will have legal permission to deal with the deceased person’s assets and estate.

Completing the sale of the property: 100% of the net proceeds of the sale of the property are paid into the deceased person’s estate

If there is more than one owner: Joint Tenants

When the deceased person owns a property with another as a Joint Tenant, this means each of the owners holds the Legal Title and 100% share of the property. The co-owner of the property can sell the property once they have a death certificate of the deceased joint tenant.

Completing the sale of the property: 100% of the net proceeds of the sale of the property go to the co-owner

If there is more than one owner: Tenants in Common

For tenants in common, each owner holds the Legal Title, but the properties value was held in shares, as opposed to 100% share of the property as with Joint tenants. In this circumstance, the land Registry will not allow the co-owner to sell their share of the property when another owner has passed away. This is to protect the co-owners share who has died. Although the co-owner can still sell the property, they will need to provide an additional Trustee to aid with selling the property. Any co-owners and trustees, therefore, have an obligation to pay the correct amount in the deceased person’s estate. Plus, also provide a valid receipt for this sale.

Completing the sale of the property: the net proceeds of the sale of the property are divided between co-owners reflecting how the shares in the property were held. With the deceased co-owners share being paid into their estate.