Inheriting real estate can stir up mixed emotions. Between sentimental attachment, practical necessities, and financial considerations, selling an inherited property is no small matter. In many cases, selling becomes a financial necessity in order to cover inheritance taxes. But how should you go about putting inherited property on the market? What are the tax implications? Here’s a brief technical guide.

How does a real estate inheritance work?

Inheritance is a crucial and mandatory administrative process, which follows a precise chronological order. It begins upon the death of the person and is strictly governed either by law or by a will previously drawn up by the deceased. The appointed notary must first gather the necessary documents and verify certain elements before officially summoning the heir(s).
The notary’s first step is to draw up an act of notoriety. This document officially confirms the identity of the heirs and allows them to assert their inheritance rights. For real estate, it serves as a certificate of ownership. It is therefore mandatory in order to consider a future sale of the property. At this stage, the notary also inventories the deceased’s assets, estate, and overall financial situation.
Heirs have the legal right to either accept or refuse an inheritance. In the case of acceptance, the sale of real estate must follow a precise process, beginning with determining its value.

Hiring a professional to appraise the property

To accurately determine the value of real estate, the best solution is to call on one or more local experts. With their in-depth knowledge of the market, they can provide a price that reflects the true value of the property. These appraisals are most often offered free of charge by real estate agencies. However, some online platforms, such as Se Loger or Meilleurs Agents, also provide estimates to get a general idea. In practice, notaries usually require at least two appraisals to establish the property’s value.
Knowing this value is essential, as it determines inheritance taxes and, if applicable, allows the estate to be divided among the heirs. Inheritance taxes are calculated precisely according to the degree of kinship with the deceased. In short, the amount owed to the state varies: a direct heir may owe around 45% of the property’s value, while a more distant heir may face up to 60%.

Selling inherited property under joint ownership (indivision)

Selling an inherited property is generally straightforward, but things get more complicated when joint ownership (indivision) is involved. Indivision occurs automatically if all designated heirs accept the inheritance. In this case, decisions must be made unanimously. For the sale of real estate, all co-owners must agree—whether it’s about the listing price or accepting a buyer’s offer.
If one co-heir wishes to keep the property while the others want to sell, the matter may escalate to court proceedings—often long and costly. However, much depends on the ownership shares. Since the Law of May 12, 2009 on the simplification and clarification of law, it is possible to sell without unanimous agreement if the co-heirs in favor of selling represent at least two-thirds of ownership rights. Even then, the decision must be authorized by the tribunal de grande instance (French civil court).

Source : edito.seloger.com