Can the executor of a will sell a property?

If you’re wondering how an executor handles probate property, you’re in the right place. The role of an executor comes with significant responsibilities, particularly when it comes to managing the deceased’s estate.

An executor is the person appointed in a will to administer the estate of the deceased person, ensuring that their wishes are carried out according to the terms of the will. This includes gathering and valuing assets, paying outstanding debts or taxes and ultimately distributing the estate to beneficiaries.

When it comes to inherited property, the executor holds complete authority over what happens to the deceased’s assets, provided there are no joint owners or specific clauses in the will that dictate otherwise.

In this article we will cover how executors can follow the will, how they can sell the inherited property, and everything in between.

How does the executor of a will sell a property?

As the executor of a deceased person’s will, one of your key responsibilities may involve selling property owned by the deceased. This process requires you to follow several legal and administrative steps while ensuring the terms of the will are followed to and the best interests of the estate and its beneficiaries are respected.

1. Obtain the death certificate

The first step in the process is to obtain the official death certificate. This document is essential for informing institutions, authorities and other relevant parties about the death, and it will be required throughout the administration of the estate, including the sale of the property.

2. Establish authority to act as executor

Before proceeding with the sale of any property, you must be legally recognised as the executor. This involves applying for a Grant of Probate (if there is a will) or Letters of Administration (if there is no will). These documents, issued by the court, give you the legal authority to manage the deceased’s estate, including selling property.

Once you receive the Grant of Probate or Letters of Administration, you are officially empowered to handle all estate matters, including the sale of probate property. 

3. Confirm ownership and status of the property

Before selling the property, it’s important to confirm how the property was owned (we will cover this in more detail later):

• Joint tenants: If the property was owned as joint tenants, the surviving co-owner automatically inherits the deceased’s share.

• Tenants in common / sole ownership: If the property was owned as tenants in common or solely by the deceased, the executor must refer to the will for specific instructions. 

4. Ensure the will’s instructions are followed

If the will specifically instructs that the property be sold, the executor must follow these instructions. In some cases, the will may include conditions such as holding the property or a share of trust for a beneficiary until a certain time or servant, such as when the beneficiary reaches a specific age.

If no specific instructions are provided in the will regarding the property, the executor has some discretion in determining how to handle the sale. However, it’s important to always act in the best interests of the estate and the beneficiaries, ensuring decisions are fair and transparent.

5. Notify relevant parties

As the executor, it’s your duty to notify various parties about the death, which includes:

• Beneficiaries named in the will.

• Financial institutions such as banks and mortgage lenders.

• Utility companies to manage and terminate services as needed.

By notifying these parties, you prevent any additional liabilities from accumulating and ensure that the estate’s affairs are properly managed.

6. Value the estate

Before selling the property, the estate (including the property) must be properly valued. This includes determining the value of all assets and liabilities such as bank accounts, life insurance policies, properties, personal belongings, and outstanding debts.

For the property itself, a professional appraisal will be needed to establish its full market value. This is essential to ensure the property is sold for an appropriate price and to calculate any potential Inheritance Tax or Capital Gains Tax liabilities. 

7. Apply for Grant of Representation

If the estate includes certain assets, such as property or funds exceeding thresholds set by financial institutions, you will likely need to apply for a Grant of Representation (either Grant of Probate if there is a will, or Letters of Administration if there is no will).

This legal document is essential for establishing your authority as the executor to manage the estate. It is particularly necessary when:

• The deceased owned property solely or as a tenant in common, as property cannot be sold or transferred without a Grant.

• The estate includes significant financial assets, such as bank accounts, investments or share portfolios, where individual institutions typically require a Grant for amounts exceeding £5,000 to £50,000 depending on their policies.

By obtaining the Grant of Representation, you are legally empowered to manage all aspects of the estate, including selling property, accessing financial accounts, paying debts and distributing assets to beneficiaries.

8. Settle debt and taxes

Before distributing any proceeds from the sale, it’s the executors responsibility to settle the deceased’s outstanding debts and taxes, which includes:

• Debts such as mortgages, loans, and utility bills.

• Inheritance Tax if the estate exceeds the £325,000 or £500,000 (direct descendants) threshold.

The property sale proceeds can be used to pay off the deceased’s debts, but the property cannot be sold before probate has been granted. This means that the executor may need to settle some debts (such as mortgage payments) from other estate funds before the property is sold.

Once probate is granted and the property is sold, the proceeds can be used to reimburse the estate for any debts already paid and to cover any remaining debts. After all liabilities are settled, any remaining funds from the sale will be distributed to the beneficiaries according to the terms of the will. 

9. Prepare the property for sale

Once it has been confirmed that the property should be sold, the next step is to prepare it for the market. This includes ensuring that the deceased’s name is removed from the title deeds, particularly if the property was jointly owned. 

You can do this by submitting the necessary forms and documents, such as a Deceased Joint Proprietor form and death certificate to the Land Registry. 

Next, you will need to decide on the best route to sell the property. There are several options available, each with its own advantages and disadvantages:

10. Accept an offer and complete the sale

As the executor, you have the authority to accept a reasonable offer on the property. You must act in good faith and ensure that the sale price is fair to protect the interests of the estate and its beneficiaries.

Once an offer is accepted, the legal process of transferring ownership to the buyer begins. The sale proceeds will then become part of the estate. 

11. Distribute the proceeds

Once the sale of the property has completed, the proceeds must first be used to settle any outstanding debts or taxes that couldn't be settled previously.

After all debts and taxes have been fully settled, the remaining funds can be distributed to the beneficiaries as specified in the will. This distribution must follow the exact terms of the will, ensuring that each beneficiary receives their correct share of the estate. 

We would recommend that, as the executor, you keep detailed records of how the proceeds are handled, including the amounts used to pay off debts and the amounts distributed to each beneficiary.

Once the distribution is complete and all the estate’s financial obligations have been fulfilled, the Executor’s role in administering the estate can be formally concluded.

What happens if the deceased owned the property jointly?

When someone passes away and the property they owned is jointly held, the type of joint ownership significantly impacts how the property is handled. The two main forms of joint ownership are joint tenancy and tenancy in common, and they function quite differently in terms of inheritance and the role of the Executor.

Joint tenants

In the case of joint tenants, all co-owners share equal and undivided ownership of the property, which means that each owner does not have a distinct, identifiable share of the property. One of the key features of joint tenancy is the right of survivorship. 

When one co-owner passes away, their share of the property automatically transfers to the surviving co-owner(s), regardless of what the deceased’s will may specify about the property.

The executor has no role in this transfer, as the right of survivorship bypasses the will. For example, if a husband and wife own a home as joint tenants and one spouse dies, the surviving spouse becomes the sole owner of the property. This transfer happens by operation of law and does not require probate.

Tenants in common or sole ownership

If the property was owned as tenants in common or solely by the deceased, the process is different. In a tenancy in common, each co-owner has a distinct and identifiable share of the property, which can be passed onto beneficiaries through the will. 

The share does not automatically transfer to the other co-owners like it would under joint tenancy. Instead, the executor must follow the instructions laid out in the deceased’s will regarding their share of the property.

If the deceased was a tenant in common or the sole owner of the property, as the executor, it’s your responsibility for ensuring that the deceased’s share of the property is distributed according to the will. 

For instance, the will may specify that the deceased’s share should be transferred to a particular beneficiary or sold with the proceeds divided among beneficiaries. In some cases, the will might instruct that the property or a portion of it be held in trust for a beneficiary until a future date or event. 

If there are no explicit instructions in the will regarding the property, the executor is given some discretion over how to manage the deceased’s share of the property. However, the executor must always act in the best interests of the estate and its beneficiaries. 

The executor may choose to sell the property, divide it among the beneficiaries or retain it as part of the estate, depending on what is most appropriate and beneficial for the estate.

Can an executor sell without all beneficiaries approving?

Yes, the executor has the legal authority to sell the property without needing approval from the beneficiaries. However, the executor is bound by law to act in the best interests of the estate and all its beneficiaries.

Conflict between beneficiaries and executors are usually most common when there are siblings involved.

While beneficiaries do not have special rights to block the sale, they can take legal action if they believe the executor is acting irresponsibly, such as selling the property in negative equity or allowing personal interests to affect their judgement. The executor should never sell a property for personal gain or at the expense of the beneficiaries.

The executor must also ensure the property is sold for a fair and reasonable price that reflects the market value. Any proceeds from the sale should first be used to settle the deceased’s outstanding debts. If this reduces the amount available to beneficiaries, they cannot contest the decision, as the estate’s obligations must legally be fulfilled before distributing assets to beneficiaries.

Can the beneficiaries remove the executor?

Beneficiaries have the right to petition the court to remove an executor if they believe the executor is failing in their duties. However, this can be a costly process due to legal fees, so it’s often advisable to attempt to resolve disputes informally before resorting to legal action.

The court may remove an executor if they are found to be unsuitable for the role. This can occur in situations such as:

• Mismanagement of the estate: Misusing estate funds or failing to properly account for assets and transactions.

• Non-compliance: Ignoring court orders or acting against the will’s terms.

• Conflict of interest or personal gain: Putting personal interests ahead of the estate or beneficiaries.

• Ineligibility or incapacity: If the executor becomes ineligible (e.g. due to criminal activity) or is unable to carry out their duties (e.g. due to a disability or mental incapacity).

In such cases, the court may appoint a professional executor to take over the estate’s administration. If there are multiple executors, they must come to an agreement on major decisions, such as selling the property to avoid legal complications.

Do all executors need to sign a contract for sale?

Yes, under UK law, all named executors of an estate must sign the contract for sale when selling a property that is part of the deceased’s estate. This is because executors are legally responsible for managing the estate that must act collectively in decisions related to the estate, including the sale of property.

If there are multiple executors, they must all agree to the sale and each sign the contract of sale to validate the transaction. However, if one or more executors cannot or do not wish to act, they may renounce their role, or the other executors can apply for power reserved, which allows the remaining executors to act on behalf of the estate without needing every executor to participate.

In some cases, the remaining executor may appoint one of them as the lead to handle day-to-day matters, but legally, all executors must agree to and sign off on key decisions, including the sale of property, unless a legal document states otherwise. If executors are struggling to reach consensus, it may require legal resolution to proceed with the sale.

How to follow a will using probate property?

In a person's will, they will specify what they would like to happen to their property after their death. This could involve leaving the property to a single beneficiary, dividing it among several beneficiaries, or placing it in a trust for a specified period.

In some cases, the deceased may not clearly state what should happen to the property. When this happens, the executor has the responsibility to decide on the property’s fate, while taking into account the beneficiaries interests and any implicit wishes the deceased may have had.

Can an executor agree on a sale price without all beneficiaries agreeing?

The sale price of a property can often be a point of contention between the executor and the beneficiaries. However, the executor holds the legal authority to manage and sell estate assets, including setting and agreeing on a sale price. This means the executor has the final say in accepting or rejecting offers, even if some or all beneficiaries disagree with the chosen price.

That said, the executor is bound by a legal duty to act in the best interests of the beneficiaries and the estate. This obligation means that while the executor can make independent decisions, they must ensure that the property is sold at a reasonable market value and not for an amount that would put the property into negative equity. 

Key considerations for an executor:

What happens if beneficiaries disagree?

If beneficiaries believe the executor has accepted a sale price that is too low or unfair, they can take legal action. This is generally a last resort and can be costly. 

To succeed in such a challenge, the beneficiaries would need to prove that the executor acted inappropriately by accepting a price that was not in line with the market value, or that put the property in negative equity, or by prioritising their personal interests over the estate’s best interests.

How can The Property Buying Company help?

Being an executor isn't an easy task, especially if the person appointed is dealing with the grief of their loved one passing.

Although they have complete control of the property and what happens to it, it might be worth discussing options with any beneficiaries to ensure everyone is on the same page.

As a group, it can be decided whether the property is put on the market to await an offer or whether a quick cash buyer like The Property Buying Company might be a less stressful option.

Benefits Of Selling Probate Property To Us

When you've inherited a property, there are quite a few benefits to using our service that you may not have considered; these include:

• We'll pay you in cash.

• We can even cover all your fees, such as the solicitor fees.

• We can purchase in as little as seven days, so you'll avoid costly utility bills, council tax and other insurances that may add up over the duration of a typical sale.

We're not pushy salespeople and are upfront and honest about our service. We can't offer you the total market value for your probate property, but we can provide you with a fair deal.

The online quote system is easy to use & it's free for us to provide a valuation, so why not give it a go?