Selling a House After Death: Who Can Sell, Steps and Taxes

Who can sell a house after the owner dies depends on how the house was owned. If it was in the dead person's name alone, the executor or court-appointed administrator needs legal authority, usually the court's letters, before the sale can close. If it was owned jointly with survivorship rights, held in a living trust or passes by a transfer-on-death deed, the survivor, trustee or named beneficiary can often sell without probate. For tax, heirs generally get a "stepped-up" basis equal to the home's value on the date of death, so a prompt sale often produces little taxable gain.

Who has the legal right to sell the house?

Start with the deed. Whoever holds title, or the person with legal authority over it, is the only one who can sign the sale documents. Being the main heir, the next of kin or the one who lives there does not give you that power.

The Legal Information Institute defines letters testamentary as the legal proof of an executor's authority to collect assets, pay debts and taxes and distribute property. Title companies and buyers' lawyers will ask to see them. If the dead person also owned land in another state, that state may require a second proceeding, called ancillary probate.

Our guides to what probate is, what an executor does, transfer-on-death deeds and who gets the house after a death explain each route in detail.

Can you list the house before probate is finished?

In many cases you can begin preparing the house and sometimes even list it, but the sale can't close until the seller's authority is in place. A buyer's lender and title company will want to see that proof. Some agents and attorneys use a contract that depends on the court issuing letters.

States differ on whether the court has to approve a sale. California, for example, generally requires notice of sale to be published before estate real property is sold, with exceptions. Others let an executor with broad authority sell without asking the court. Ask a probate attorney in the state where the house sits, and have them confirm before you sign a listing agreement.

Small estates that qualify for a short process may move faster, although many states don't allow the affidavit route for a house. Our guide to small estate probate explains where the lines fall. To gauge the time and cost of a full case, try the tool below.

What should you do first to protect the house?

An empty house can lose value quickly, and the estate, not a buyer, bears the loss until closing.

• Call the homeowners insurer. Tell them about the death and ask about coverage while the house is empty. Standard policies often limit or change coverage when a home sits vacant, so ask whether you need a vacant-home policy. Our guide to home insurance after a death covers what to ask.
• Secure the property. Change the locks, collect all keys and decide who will have access. Family members who take items before the estate is inventoried can cause disputes and legal problems.
• Keep paying the essentials. Mortgage payments, property tax, insurance and utilities continue. Keep heat on in cold weather to protect the pipes.
• Forward the mail and check the house regularly. See forwarding mail after a death.
• Photograph everything. Record the condition of the house and its contents before anyone removes or repairs anything.
• Wait before clearing it out. The contents belong to the estate, and the will or state law decides who gets them. Our guides to estate sales and donating belongings cover the next step.

What happens to the mortgage?

The mortgage does not disappear, and the lender can still foreclose if payments stop. The good news is that federal law limits how a lender can respond to the death itself. Under 12 U.S.C. 1701j-3, a lender generally cannot enforce a due-on-sale clause because of a transfer to a relative resulting from the borrower's death, or a transfer by inheritance or operation of law to a surviving joint owner. This applies to most home loans on residential property of fewer than five units.

Federal mortgage servicing rules also treat such a relative as a "successor in interest," which gives them a path to ask the servicer for information and options. Contact the servicer early, send a copy of the death certificate and ask what they need from you to confirm your role.

If the house is sold, the loan is usually paid off from the proceeds at closing, and the title company handles that with a payoff statement. A reverse mortgage works differently. The CFPB says it is repaid when the borrower no longer lives in the home, usually by selling the house. The deadlines and options for heirs depend on the loan terms, so call the servicer as soon as you can.

How is the sale taxed?

Stepped-up basis

According to IRS Publication 551, the basis of inherited property is generally its fair market value on the date of the owner's death, not what the owner paid years ago. If the estate's representative elects it for estate tax purposes, the basis can instead be the value on the alternate valuation date, generally six months after death. The holding period is automatically long-term.

Here is a simple, hypothetical example. A house was bought for $60,000 decades ago and is worth $400,000 on the date of death. If it sells for $410,000, the taxable gain is about $10,000 before selling costs, not $350,000.

Home sale exclusion for a surviving spouse

IRS Publication 523 explains that a surviving spouse can exclude up to $500,000 of gain if they sell within two years of the spouse's death, haven't remarried and meet the other tests. Otherwise the standard exclusion is $250,000. Because that exclusion is tied to the seller's own ownership and use of the home as a main residence, it often doesn't help heirs who never lived there.

Estate and state taxes

The federal estate tax only applies to estates above the exclusion amount, which is $15,000,000 for deaths in 2026 and $13,990,000 for deaths in 2025, per the IRS. A few states have their own estate or inheritance taxes at lower levels. See our guide to estate tax by state. Where the sale gain is reported depends on who owns the house at closing. If the estate sells, the estate may need to file its own income tax return (Form 1041). Ask a tax professional or the estate's attorney.

What if the heirs disagree?

An executor usually has to follow the will and may have a duty to all beneficiaries, so one heir usually can't hold up a sale alone if the executor has authority to sell. The situation changes after the house is transferred to several heirs as co-owners. According to the Legal Information Institute, a co-owner can ask a court for partition. If the property can't be fairly divided, the court can order it sold and split the proceeds. That takes time and legal fees, so a written agreement among the heirs is almost always cheaper.

Should you sell as-is, fix it up or use a cash buyer?

Each choice trades price for speed and effort. Cash investors often move quickly and take the house in its current condition, but their offers are usually below what the open market pays, because they build in repair costs and profit. Listing with an agent who has handled estate sales generally takes longer and requires some preparation, such as cleaning, clearing and minor repairs. Big renovations rarely make sense while probate is open. Get at least a couple of offers or an agent's market opinion before you decide, and have the attorney review any contract.

Step by step: selling an inherited house

1. Gather the basics. Get certified death copies, the deed, the will and any trust papers. Our guide on how many death certificates you need can help.
2. Confirm who has authority. Decide whether you need letters, a trustee's certificate or a recorded survivorship document.
3. Protect the house. Insure it, secure it and keep the bills paid.
4. Order a date-of-death appraisal. This sets the tax basis.
5. Contact the mortgage servicer. Confirm your role and the payoff amount.
6. Choose an agent or buyer and an attorney. Ask about probate timing, required notices and seller disclosures in your state.
7. Close and deposit the proceeds in the estate account. Don't put them in a personal account. Pay debts and taxes before sharing out the money.