Selling an Inherited House – the First Steps

Whatever type of property you have to sell now after the inheritance: It depends on the location. When selling an apartment, selling a house, selling a plot and even more so when you are looking to sell multi-family houses. The location of your real estate is a decisive valuation factor. So is the substance and the equipment. Selling privately means accepting risks and making mistakes. From property valuation, contracts, taxes and costs.

In most cases the heirs decide on the inheritance: collect, administer or sell ?

Even if the property is located far from the heir’s place of residence. But in exactly this situation, the question arises what to do with the property. If neither inhabiting nor renting the house is possible, the most common consideration is to sell the inherited house.

• Reading tip: Sell or rent (external, FIV Magazine)

The first step: Local court, compulsory share and certificate of inheritance

After a house is inherited, the first step for the heir is to go to the local court. There the certificate of inheritance can be applied for. This measure should also be taken if the heir only claims the compulsory portion. The certificate of inheritance identifies the heir as the rightful owner of the property.

The certificate of inheritance is issued by the probate court. The competent probate court is always the district court of the last residence under which the deceased was registered.

At the appointment at the probate court, the heir must prove his claim to the inheritance. This can be done through the public will, the inheritance contract or by proving the relationship with the accompanying legal succession.

The following documents must be brought by the heir to the probate court:

• The identity card
• The death certificate
• An affidavit regarding the correctness of the personal data

The probate court then issues the certificate of inheritance. This is either a sole certificate of inheritance, a community certificate of inheritance or a partial certificate of inheritance.

The sole certificate of inheritance is issued if there is only one heir. A joint certificate of inheritance is issued if there are several heirs. The certificate of partial inheritance shows that there are several heirs and that each of them receives a single inheritance.

The certificate of inheritance allows the heir to view the land register. Through this it can be found out whether the property is encumbered with land charges.

It should be noted that the issuing of the certificate of inheritance can be very expensive. These are based on the value of the inherited property at the time of the inheritance, less the debts of the deceased. In addition, the amount of the fees is based on the effort of the inheritance certificate procedure. For example, a fee of 300.00 Euros is due for an estate of up to 125,000 Euros. For an estate value of up to 500,000 Euro, a fee of 935.00 Euro is already due.

The extract from the land register is then corrected, as the heir is now the new owner of the property. In contrast to the conventional entry in the land register when buying a house, the entry in the land register for an heir is free of charge, provided that this is requested within two years after the death of the testator. Afterwards, the sale of the house can begin.

Selling an inherited house with several heirs

It is not unusual for a property to pass into the possession of several heirs. This is the case when several children inherit the house. This does not prevent the sale of the inherited property. The prerequisite for this is, of course, that the heirs are in agreement and all agree to the sale of the house. Verbal promises are not reliable here; instead, a clear legal situation is necessary.

Which costs are incurred when selling a house?

If the inherited house does not have to be renovated or a speculation tax is due, the costs are kept within a manageable range. Small cosmetic repairs will be due. Also proportional costs of the broker must be included. If the house is still burdened, a prepayment penalty for the mortgage is due.

Sell inherited house: Historical property

The sale of an old building or a listed property can prove to be more complicated. Often the speculation period causes heirs to suffer. If the property is sold within the period, the tax benefits that were originally granted by the status of the house are reclaimed.

In addition, the heir is obliged to preserve the property. If this does not happen, an order for maintenance can be issued by the monument protection authority. The resulting invoice will be forwarded to the heir. This results in very high costs, which the heir could have avoided.

What taxes are due on the sale of an inherited house ?

A land transfer tax is to be paid with every house sale. This is taken over by the buyer.

The inheritance tax itself is due with every inheritance, regardless of whether the house is sold or not.

It is therefore of primary importance for the heir whether an income tax is due. This is levied if the house is sold within the speculation period. The duration of the speculation period is ten years. The speculation period is not calculated from the time of inheritance, but from the time when the house was bought by the testator.

If this purchase is more than ten years ago, no taxes are due for the heir.

If the house is sold within the speculation period, the profit of the sale is taxable. This means that not the entire purchase price of the property is taxed, but only the increase in value of the house since the purchase. Thus the amount by which the proceeds of the sale are higher than the purchase price paid by the testator at that time is taxed.

You can find out the amount of this profit by deducting from the price that was sold for the property the acquisition costs, brokerage costs, notary’s fees and land transfer tax.

Whoever wants to sell an inherited house often exposes himself to a great deal of stress. It is therefore helpful to engage a competent estate agent who will take care of the sale of the house and take over all related tasks.

You are going to inherit a house? 8 tips for correct heirs of a property

You will inherit a house and are wondering what the next steps are for you? We present 8 aspects that you will have to deal with when inheriting a property.

How do I get my inheritance?

Ideally, the deceased has written a will and deposited it with a civil law notary. A will regulates (for example in the case of several children) who should inherit what. If there is no will, the legal succession applies. Spouse and children are first order heirs.

Check the estate

If an heir is accepted, this means accepting all rights, but also duties. If the inheritance is a pure monetary amount, this value is immediately determined. The situation is different with real estate. Not only does the house pass into the hands of the heir, but also any debts such as a mortgage are then accepted by the heir. This means in practice that the heir is liable for these debts with his own assets.

The heir therefore has a period of 6 weeks within which to decide whether to accept or reject the inheritance. This period begins on the day you learn of the inheritance. A glance at the land register reveals the financial situation of the estate. An estate agent is also able to determine the market value of the property.

The disclaimer of the inheritance takes place at the local court. Alternatively, the disclaimer can also be certified by a notary of your choice.

Do I need a certificate of inheritance?

The certificate of inheritance confirms the legality of the inheritance. Often the certificate of inheritance is necessary in order to receive the inheritance in the first place or to access the accounts of the deceased. The certificate of inheritance also entitles the heir to inspect the land register.

Are you the sole heir or co-heir of a community of heirs ?

In the case of a community of heirs, the inheritance does not go to a single person, but to several persons. This is the case, for example, if the testator leaves several children. The inherited house therefore belongs to all heirs. None of the co-heirs has a right to individual items of the inheritance. This means that all decisions concerning the inherited property must be made jointly by all heirs.

In a community of heirs, very different ideas about the property often clash, which can often lead to major conflicts. Many communities of heirs therefore decide together to sell the house and to divide the subsequent proceeds among themselves. This sale, in contrast to a partial auction, does not involve economic losses.

What should happen to the house?

Who will inherit or has already inherited a house, must deal in the second step with the question, what is to happen with the real estate. If the property is located in the heir’s place of residence and is also in a favorable location, it makes sense to live in the property yourself.

However, this option is not always possible. For example, if the heir already lives in his own house or the inherited house does not meet his own wishes and ideas.

The options then available to the heir are either renting the property or selling the house. Who considers letting must consider here that often numerous renovation work becomes due with the inherited house.

Which costs will come to me when I inherit a house?

The costs of inheriting a house are manageable. These are the application for the certificate of inheritance, the change in the land register and running costs.

The amount of the costs for the certificate of inheritance depends on the assets that are inherited. If the value of the inherited house is approximately 500,000 Euros, the costs due for the certificate of inheritance amount to approximately 935 Euros.

Running costs include, for example, incidental expenses and taxes. These can vary greatly from property to property and must be calculated individually.

Change of the entry in the land register

In the case of a normal house purchase, costs for the change of the land register entry become due. Not so if you inherit a house. In this case, you have a period of two years within which you can be registered free of charge as the owner of the property in the land register.

A certificate of inheritance is required to have the entry in the land register amended. You can obtain this from the probate court of the district court of the last place of residence under which the testator was registered.

Alternatively, a notarized will can be presented at the land registry. However, a simple will is not sufficient.

Calculate the inheritance tax

Who will inherit a house should calculate the amount of the inheritance tax as soon as possible. The law grants the heir a high tax allowance. For spouses in inheritance tax class I this is 500,000 euros. Children and grandchildren benefit from a tax allowance of 400,000 Euro.

Tax allowance:

Spouses in inheritance tax class I = 500,000 Euro

Children and grandchildren = 400.000 Euro

An inheritance tax is due if the remaining estate, after all liabilities have been calculated and deducted, is above the tax-free amount.

In inheritance tax class I, 7% inheritance tax is due after deduction of the tax-free amounts for a discount of up to 75,000 euros.

For a discount of up to 300,0000 euros, 11% inheritance tax is due.
You will inherit a house and would like to sell it? We are happy to assist you and advise you. Please contact us by telephone so that we can take care of your case.

Increase in value through conversion ?

An old property can be put to new use by a house conversion. Small rooms can be merged. Alternatively new rooms can be created. By extending the attic or the basement even new square meters can be gained. This opens up many possibilities for the current residents of the house, but can sometimes also be useful if you want to sell your house. Especially for old buildings with small rooms, a conversion can work wonders and attract more buyers. However, conversions involve a lot of effort and a high financial outlay. You should therefore only use it to increase the value of your property if your chances on the real estate market improve noticeably as a result.

• Selling a house and increasing its value: house renovation

What is a real estate bubble?

What is a real estate bubble? Many who hear the word real estate bubble first wonder what the term is all about. A real estate bubble is a form of a speculative bubble. The term real estate bubble states that real estate is being sold at overpriced prices and is generally overvalued. The higher these prices get, the bigger the real estate bubble gets until it finally bursts after reaching its peak. Once it bursts, prices fall abruptly.

The Spiegel reports this week that economists currently see increased alarm signals in the current speculation on the real estate market. Therefore, economists classify the bubble risk at 92 percent. Further, the mirror sees an overheating in the real estate market: For these cities and counties experts warn of a bubble. It becomes critical under circumstances for real estate owners. As described in the WDR: “Who would have to sell his object, in order to come at money at present, obtains only lower prices, says Voigtländer. The financing model set up together with a bank could then waver. But those who keep their property in the medium or long term do not feel any direct effects.”

Where are property prices rising the most?

The price trend is currently strongest in the south of Germany. Bavaria, Baden-Württemberg but also neighboring states such as Hesse and Rhineland-Palatinate have to contend with rising prices per square meter. What annoys the buyer of houses and condominiums, is for house sellers of course an absolute blessing, because currently top prices can be achieved, as you can see here in the statistical analysis:

You can find more infographics at Statista

Is it still worth investing in real estate?

Admittedly, the current real estate market is in motion and heated up. Real estate prices per square meter have been rising for some time. What is and remains certain is that real estate is still one of the few investment properties that currently still yield sufficiently attractive returns for investors. Tip: Here you can find all current prices of the most important real estate companies. Despite the current and long pending discussion about a real estate bubble, the investment does not seem completely absurd. Learn more here: Real estate as an investment.

Interview: “The real estate bubble will burst”.

Prof.Max Otte in an interview with SWR with the statement: “The real estate bubble will burst”. The topic: “The Great Money Flood – How the Rich Are Getting Richer”.

Tip! New at Lukinski: Sell Hotel

Profit from the current tourism boom and sell your old hotel at a good selling price. More tips? Read here: Selling a hotel.

Hotel verkaufen? #Tourismus in Deutschland boomt wie nie! Wir haben alle Statistiken zu Gästezahlen & Co. Holen Sie jetzt den besten Verkaufspreis für Ihr Hotel!https://t.co/KZAmfrM39l

— IhrHausverkauf.de (@ihrhausverkauf) August 10, 2019

Real Estate News

IM Real Estate Manager on healthcare real estate

This week at IM Immobilienmanager, among others, articles on “Healthcare real estate: hardly any big deals” and “Eden Tower: €110 million financing in place”. More news can be found here:

• Europe’s logistics rents rise sharply
• Eden Tower: 110 million euro financing in place
• Healthcare real estate: Hardly any big deals

Frankfurter Allgemeine on health: How to work in the garden without back pain

This week’s Frankfurter Allgemeine features exciting articles such as “Garden design: June’s flowering treasure chest” and “The right way to rake and mow: Gardening without back pain”. More news from the past days:

• Garden design: June’s flowering treasure chest
• Holiday architecture: How to attract guests with special holiday properties
• Rake and mow properly: How to do gardening without back pain

Real Estate Newspaper on political interventions in the granting of loans

This week Immobilien Zeitung has interesting topics such as “Outlet centers will double turnover in Germany” and “In Münster, especially medium residential areas will become more expensive” in the magazine. The posts and more tips can be found here:

• Outlet centers will double sales in Germany
• DIW calls for political intervention in lending
• In Münster, it is mainly medium-range residential areas that are becoming more expensive

Spiegel on speculation in the real estate market

At Spiegel, this week’s topics are “Overheating in the real estate market: experts warn of a bubble for these cities and counties” and “Real estate: bank offers construction loan without interest in Denmark” . More news from this week:

• Real estate: Bank offers construction loan without interest in Denmark
• Speculation on the real estate market: Economists rate bubble risk at 92 percent
• Overheating on the real estate market: Experts warn of a bubble for these cities and districts

Handelsblatt on Mexico City: Paradise for apartment renters

In contrast, Handelsblatt reports this week on “Vonovia increases profit by 13 percent thanks to acquisitions and higher rental income” and “Low interest rates aren’t everything: These are the best providers for construction loans” . More headlines of the week:

• Low interest rates are not everything: These are the best providers of building loans
• Why Mexico City is a paradise for apartment renters
• Vonovia increases profit by 13 percent thanks to acquisitions and higher rental income

Star to new concepts: The kit house

Stern’s blog looks at “London: tenant fined €112,000 for renting out his council flat via Airbnb” and “House building: put up this dream kit house yourself” . More news of the week:

• House building: This dreamlike kit house you put up yourself
• London: Tenant must pay €112,000 fine for renting out his council flat via Airbnb
• Real estates: Family plans with 84,000 euro building child money – and is to go out now empty-handedly

Haufe with money laundering in focus and suspicious leases

New from Haufe this week includes “Housing construction: Vorpommern demands concrete help from state and federal government” and “Money laundering: real estate agents must report suspicious rental contracts” . More real estate news for tenants, buyers and sellers:

• Housing construction: Vorpommern demands concrete help from state and federal government
• Cabinet approves draft law against share deals
• Money laundering: estate agents must report suspicious leases

Manager Magazin on HQ Capital: Gambled away in New York

There are also new headlines this week from Manager Magazin such as “Extreme interest rate development: Danes get long-term loans at zero rates for the first time” as well as “Adenauer vs. Quandt: HQ Capital gambles away in New York” . More headlines:

• Adenauer vs. Quandt: HQ Capital gambles away in New York
• Extreme interest rate development: Danes receive long-term loans at zero rates for the first time
• Hotel icon Raffles Singapore reopened: A room? Here there are only suites

T-Online on deadlines in house building

This week, T-Online has covered topics such as “Warranty when building a house – no builder should miss this deadline” and “Rent arrears – rent not paid: When may the landlord terminate?” . New topics of the week:

• Protection for times of crisis – stumbling blocks for couples in real estate financing
• Rent arrears – rent not paid: When may the landlord terminate the lease?
• Warranty when building a house – no builder should miss this deadline

Süddeutsche Zeitung with landlord interview

This week’s Süddeutsche Zeitung blog is about “We are practically fully let” and “Database instead of gut feeling” . Updates and news from the newspaper:

• We are practically fully let
• And suddenly there’s nothing
• Database instead of gut feeling

Federal Gazette on land transfer tax reform threatening businesses

This week at Bundesanzeiger among others “Year of construction must be correct” but also “First yes, then no” . New articles, headlines and trends:

• First yes, then no
• Year of manufacture must be correct
• Real estate transfer tax reform may threaten companies: Federal Cabinet approves unsuccessful reform

Berlin.de about Tegel after-use

New articles and posts from Berlin.de this week include “Homeowners must build reserves for maintenance” and “More building applications for apartments due to extensions and conversions” . More headlines of the week:

• Homeowners must set aside reserves for maintenance
• Senate pushes ahead with plans for Tegel’s subsequent use
• More building applications for apartments due to extensions and conversions

Investment Stocks: Real Estate Winner of the Week

CR Capital Real Estate

Course Provider:

CR Capital Real Estate

Climate change, modernisation and urban development

As we reported a few weeks ago, cities are in a state of flux. No matter if it is about the densification of living space, for example by putting new floors on top of supermarkets or even completely new city ordinances, like in Taipei. Green cities are the future, more housing on less land. To make it happen, there are more and more ideas, like this week presented in Focus Online, Environment Minister Svenja Schulze wants stricter regulations: One million households threatened with expensive conversion of chimneys and flues. Also in the manager magazine the will for change shows up, e.g. by skyscrapers from wood. The view of the green change does not only have positive aspects. If you look at your own wallet, you will agree with the Handelsblatt that this week debates the increase in costs due to the CO2 tax.

Also interesting: Berlin – Greening of roofs becomes mandatory.

Skyscraper made of wood – new construction from sustainable resources

Change is everywhere. Even animals and plants are changing their habitats. As you can read in the article Europe’s extraordinary gardens, tropical fruits now grow in Europe, where as grapefruits in London and magnolias with a view of the Alps.

CO2 tax – Do we really need it?

Professor Dr. Harald Lesch takes a deeper look at the debate about the CO2 tax. The video says: “Fridays for Future is calling for a CO2 tax of 180 euros per tonne of CO2. No problem, you might think, what normal person produces a ton of CO2? In fact, we do, directly and indirectly, almost monthly: 10 tons of CO2 per year per German citizen.” – Learn more interesting facts in the video:

Real Estate Shares: Price Week

The top 3 winners at the moment at a glance. Here you can find all real estate shares.

Immofinanz Real Estate Investments AG

Eyemaxx Real Estate

Course Provider:

CR Capital Real Estate

Course Provider:

Real Estate News:

Manager Magazin about Singapore’s most expensive penthouse

There are also new headlines this week from Manager Magazin such as “Researchers present concepts: “Skyscrapers made of wood are a natural answer to climate change”” as well as “Apartment for $54 million: Billionaire vacuum cleaner Dyson buys Singapore’s most expensive penthouse”. More headlines:

• Apartment for 54 million dollars: Billionaire vacuum cleaner Dyson buys Singapore’s most expensive penthouse

Focus Online answers questions on property tax reform

The Focus Online blog reports on “Environment minister wants stricter guidelines: One million households threatened with expensive conversion of chimneys and flues” and “Courts have ruled: Service charges – these are the ten most important rulings for tenants and landlords”. More news and current laws:

• The most important answers to the reform: Scholz plan for new property tax: Who now has to pay more rent
• Environment minister wants stricter regulations: One million households threatened with expensive conversion of chimneys and flues
• Courts have ruled: Service charges – these are the ten most important rulings for tenants and landlords

Did you already know? These are the most frequent searches in Germany for property tax:

• When is the property tax paid?
• Who pays the property tax?
• What is the property tax A and B?
• What is the difference between property tax and land transfer tax?

IM Immobilienmanager about Generali Real Estate

This week at IM Immobilienmanager among others articles about “Generali Real Estate appoints Lukas Jeckel as Head of Region Central Northern Europe” and “Terragon: Annette Heilig appointed to the Management Board” . You can find more news here:

• Austrian real estate fund buys Babelsberg Center
• Terragon: Annette Heilig appointed to the Management Board
• Generali Real Estate appoints Lukas Jeckel as Head of Region Central Northern Europe

Frankfurter Allgemeine on expropriation and rent freeze

This week’s Frankfurter Allgemeine has some exciting articles, such as “Proper raking and mowing: How to do gardening without back pain” and “Expropriation and rent freezes: The GDR is no role model! More news from the past days:

• Rake and mow properly: How to do gardening without back pain
• Workplace couple dynamics: sharing a desk with Schatzi
• Expropriation and rent freeze: The GDR is no role model!

Handelsblatt on the increase in costs due to the CO2 tax

In contrast, Handelsblatt reports this week on “Rising aspirations fuel housing shortage” and “Here’s how CO2 tax would make housing more expensive” . More headlines of the week:

• This is how the CO2 tax would make housing more expensive
• ECB experts warn of overheating in the European real estate market
• Rising aspirations fuel housing shortage

Star over Youtube Star (6) buying his first house

The blog of Stern deals with “Warning signs: How safe is your job? 12 signs of your imminent dismissal” and “Real estate: family plans with 84,000 euros Baukindergeld – and is now to go empty” . More news of the week:

• Real estates: Family plans with 84,000 euro building child money – and is to go out now empty-handedly
• Warning signs: How safe is your job? 12 signs you’re about to quit
• In South Korea: Six-year-old Youtube star buys house for more than seven million euros

Haufe: Rents rise significantly slower than purchase prices

New from Haufe this week includes “Frühlingsfrisch” and “Rechtzeitige Zahlung der Gerichtskosten bei Anfechtungsklage” . More real estate news for tenants, buyers and sellers:

• Housing market: Rents are rising much more slowly than purchase prices
• Timely payment of court costs in an action for annulment

T-Online asks: How big does the budget have to be to buy a house?

This week, T-Online has topics such as “Recovering construction defects – claiming warranty when building a house” and “Construction guide – How big does the budget need to be to buy a house?”. New topics of the week:

• Apportionable service charges – What you as a tenant have to pay and what not
• Building Guide – How big a budget do I need to buy a house?
• Complain about construction defects – warranty claim when building a house

Süddeutsche Zeitung on living as a single

This week’s Süddeutsche Zeitung blog is about “How the government wants to fight money laundering” and “Room, kitchen, murder”. Updates and news from the newspaper:

• How the government wants to combat money laundering
• Where the singles live
• Room, kitchen, murder

Federal Gazette knows: Germany must build more

This week at Bundesanzeiger among others “Discussion about rent regulation misses actual market development” but also “Germany needs to build more”. New articles, headlines and trends:

• Germany must build more
• Discussion about rent regulation misses the actual market development
• Housing urban development plan: Focus on new construction instead of regulation

Berlin.de about the wood market project of the capital city

New articles and posts from Berlin.de this week include “Bund der Steuerzahler criticizes apartment purchases” and “Saleh jumps on Müller: Correct urban development plan” . More headlines of the week:

• Taxpayers’ association criticizes apartment purchases
• New start for Berlin timber market project
• Saleh jumps on Mueller: Correct urban development plan

Immobilien Zeitung sees Stuttgart logistics market on the upswing

This week Immobilien Zeitung has interesting topics such as “Stuttgart logistics market on the up” and “Poor but sexy was yesterday” in the magazine. The posts and more tips can be found here:

• Stuttgart logistics market on the upswing
• Logistics revenue is “exceptionally strong
• Poor but sexy was yesterday

Spiegel on the fight against money laundering

At Spiegel this week it’s about “Rich: Zara founder prefers real estate as an investment” and “Fight against money laundering: government takes real estate agents more to task” . More news from this week:

• Fight against money laundering: government takes real estate agents more seriously
• Central bank: ECB experts warn of real estate bubble in Europe
• Rich: Zara founder prefers real estate as an investment