Can I sell an inherited house before the estate is closed in Pennsylvania?

Pennsylvania's estate code gives the personal representative the right to take possession of estate real property and to maintain and administer it during administration. It also says the representative collects rents and income until the property is sold or distributed. That wording assumes a sale can happen while the estate is still open. A closed estate is the end of the process, not a requirement for a sale. Many families assume they have to wait until every account is settled. They do not. Estates often take a long time to close, because creditors must be paid, returns filed and heirs agree on the distribution. A house sitting empty during that time costs money in taxes, insurance and upkeep, and an empty house can attract trouble. Selling during administration is common when the heirs do not want to keep the house. The key is authority to sell, not a closed file.

The first step is letters. In Philadelphia that means the Register of Wills at City Hall, Room 180, with an original death certificate, an estimate of the estate's value and a current ID. With a will, you bring the original will too and receive letters testamentary. Without a will, you receive letters of administration. After that, the representative can sign a sales contract, subject to what the will says and whether a court order is needed.

Selling does not cancel the inheritance tax. The Department of Revenue says the tax is due at death and delinquent after nine months. A sale also does not clear liens or debts attached to the house. At closing those items are usually paid out of the proceeds. Ask the estate attorney what must be paid and in what order before anyone receives a distribution.

Ask the estate attorney a few things before the house goes on the market. Does the will give the power to sell, or is a court order needed? Are there debts or liens that will be paid at closing? Is there a mortgage, and what is the payoff? Who will pay carrying costs until closing? What does the estate owe in inheritance tax, and when? Can the buyer close before the estate is wrapped up? Most estates stay open for a while after a sale, since the representative still has to pay debts, file returns and distribute what is left. Plan on that rather than waiting for everything to finish.

An estate that wants to wrap up quickly may prefer a cash buyer. Kaizen Home Buyers buys as-is, with no repairs and no agent commission. We make an offer within 24 hours and can close in 14 to 30 days or on the date the estate chooses. An estate that can wait and has a house in good condition might do better with an agent. Compare both. Our number is 267-329-0084.