Steps to Selling an Inherited Property in California
If you’re selling an inherited property in California, you may be balancing the moving scales of emotions, time, and money. You’re likely eager to get a sales contract signed and move things forward as quickly as possible.
“The first step is to find out if there was a trust or will and if the property needs to be placed into probate,” advises Jon Ahern, a HomeLight Elite real estate agent in the Bay Area with more than 20 years of experience. “That would be the first step — to figure out whether you need to get court confirmation for the sale or you do not.”
In this post, Ahern will provide real-world insights on how to sell an inherited house in California. We’ll also suggest clear steps and expert tips to help you decide which selling path is best for you.
Editor’s note: This post is for educational purposes. If you need assistance navigating the legalities or tax implications of selling an inherited home in California, HomeLight encourages you to consult a professional advisor.
Here are the steps to selling an inherited property in California:
1. Confirm exactly where the mortgage stands
As the new owner of the house, experienced agents like Ahern will tell you it’s essential to fully understand the status of the mortgage before you take any selling steps. You need to know the outstanding balance, monthly payments, interest rate, and other existing loan terms.
You’ll also need to know if the inherited California home has any other liens or judgments, such as unpaid taxes, a home equity line of credit, or a reverse mortgage.
A title search will help determine what you need to address ahead of time and your next steps. If there is any question about whether the title was properly conveyed to the heir, you should contact an experienced estate planning attorney. They can assist with legal requirements and filing procedures in California.
2. Anticipate the ownership timeline
Even if you know you’ll inherit the California home, it may take some time before you legally own it. Your ownership timeline typically depends on how you inherited the house, whether through a probate inheritance, living trust, or a transfer on death deed (beneficiary deed).
Ahern explains that you’ll take ownership faster if you’ve inherited the property through a living trust or life estate deed because no court approval is required. This allows you to sell the property immediately or at a time that fits your objectives.
“Make sure that you are correctly authorized to make the decision of the trust for yourself and any other beneficiaries,” Ahern says, adding that if an estate plan is in place, the next steps are much easier and usually less expensive.
On the other hand, as a judicial process, probate inheritance is more complicated and can take anywhere from a few months to a year or more. How long your probate process takes will depend on the complexity of the estate.
It’s important not to sign listing paperwork and market a property until you have court confirmation that you are the new rightful owner and have the legal right to list and sell the property. If you list too early before confirming ownership, your efforts to move the sale along can actually stall or cancel a potential sale.
