Sell an Inherited House in New York

This page is general information about New York, not legal, tax or financial advice. Laws and local rules change, and every situation is different. Talk with a New York attorney, tax professional or HUD-approved housing counselor about your own circumstances.

How probate affects selling an inherited house in New York

When someone dies owning a house in their own name, the estate usually goes through the Surrogate’s Court in the county where they lived. For Orange County that court is in Goshen; for Dutchess County it’s in Poughkeepsie; for Ulster County it’s in Kingston.

• If there’s a will, the executor named in it asks the court to admit the will to probate. Once approved, the court issues Letters Testamentary, which give the executor authority to act for the estate.
• If there’s no will, a close relative usually applies to become the administrator and receives Letters of Administration.

In most cases, the executor or administrator is the person who signs the contract and the deed, and the title company will ask to see the letters before closing. Letters sometimes come with limits, so your estate attorney will confirm exactly what authority is needed to sell. Probate can take several months or longer, especially when relatives have to be notified or someone objects.

Not every house goes through probate. A house held jointly with a surviving spouse, held in a trust, or transferred with a transfer-on-death deed may pass outside probate. Your attorney can tell you which applies.

Costs that keep running while the estate is open

An inherited house still has property taxes, insurance, utilities and maintenance. Many homeowners policies limit coverage once a house sits vacant, so call the insurance company and let them know. In winter, a vacant house needs heat or proper winterizing to avoid frozen pipes. If there’s still a mortgage, payments are due even while the estate is being settled.

Common questions heirs face

There’s still a mortgage on the house

Federal law (the Garn-St Germain Act) generally stops a lender from calling a home loan due just because the house passed to a relative after a death. The loan still has to be paid, and a sale pays it off at closing from the proceeds.

There’s a reverse mortgage

A reverse mortgage usually comes due when the last borrower dies. Under HUD’s rules for federally insured reverse mortgages (HECMs), heirs generally get time to sell, and can usually sell for the lesser of the loan balance or 95% of the appraised value. Contact the loan servicer early to learn your deadlines.

Several siblings inherited it together

When there are multiple heirs, everyone has to agree on the sale price and timing. A clear cash offer with no repairs or showings can make that conversation easier. If heirs can’t agree, talk to the estate attorney before anyone takes legal action.

The house is full of belongings

Take the photos, papers and keepsakes that matter. You can leave the rest. We handle clean-out after closing.

Disclosure and taxes

New York’s Property Condition Disclosure Act generally exempts executors, administrators and other fiduciaries selling in the course of administering an estate from filling out the disclosure statement. Federal lead-paint disclosure rules can still apply to homes built before 1978. On taxes, inherited property often receives a “stepped-up” cost basis for capital gains purposes. Ask a tax professional how that applies to you.