Have you inherited a house, but the co-heirs are in disagreement? This is a situation familiar to over 70% of all inheritance communities and can jeopardize the property's value. This guide shows you how to approach the sales process in a structured way and avoid financial losses.
Chat with ImmoGPT for free now.
With access to Google, BORIS, and Deep Research.
The topic briefly and concisely
For the sale of a property from a community of heirs, the unanimous consent of all co-heirs is absolutely necessary.
A neutral, data-driven property valuation is the most important basis for avoiding conflicts over the price and securing a fair return.
The partition auction is the last resort for blocking co-heirs, but it almost always leads to significant financial losses of 20-30%.
Selling a property within an inheritance community presents many families with a challenging ordeal. Emotional attachments and differing financial interests often lead to a deadlock that can reduce the property's value by up to 1% monthly. But how do you sell a house from an inheritance community without ending up in costly disputes? The key lies in a structured approach based on clear rules and an objective data foundation. From unanimous resolutions and neutral valuation to the distribution of proceeds – this article safely guides you through all phases and shows you how to distribute the assets fairly and profitably.
The Situation: Why Selling in an Inherited Community is So Complex
When multiple people inherit together, they automatically form a community of heirs according to § 2032 BGB. This community is not a permanent entity but is intended for the resolution, namely the distribution of the estate. The problem: Estate items such as a property can only be disposed of jointly. For the sale, the unanimous consent of all co-heirs is required. Even a single co-heir who does not wish to sell can block the entire process for months or even years. This stalemate not only leads to frustration but also incurs ongoing costs for property tax and maintenance of several hundred euros per month. The decision-making process in the community of heirs is therefore the first and biggest hurdle. A clear plan is essential to set the right course from the beginning.
Step 1: Reach a joint decision to sell
The first step is the formal agreement of all co-heirs. According to § 2038 BGB, all co-heirs must agree to the sale. A simple majority based on the size of the inheritance shares is not sufficient here. It is advisable to record this decision in writing in a protocol to avoid misunderstandings later. But what to do if a co-heir refuses to sell? Here are several options you should consider before taking legal action:
Payout to the co-heir: The other heirs can offer the obstructive co-heir to take over their share of the inheritance and pay them out.
Sale of the inheritance share: Each co-heir can sell their entire share of the inheritance to a third party (§ 2033 BGB). The co-heirs have a statutory pre-emption right of two months in this case.
Professional moderation: A neutral third party, as offered through Auctoa Inheritance Community Moderation, can often break down entrenched positions and find a solution profitable for all parties involved.
Reaching an agreement is almost always the most economically sensible course, as legal disputes can reduce the proceeds by 20-30%. Once an agreement is achieved, the crucial step of price determination follows.
Step 2: Establish an objective property valuation as a basis for fairness
Once you have agreed on the sale, the question of the right price arises. Different ideas about the value of the property are the most common reason for conflicts after the basic agreement. A subjective estimate from a co-heir is the worst basis for this. A neutral, data-supported market value appraisal is the only solution to create a fair and universally accepted basis. This appraisal not only assists in price determination but is also recognised by the tax office for setting the inheritance tax. An accurate value is also crucial if you are considering selling to a co-heir. With the Auctoa Inheritance Manager, you receive an AI-driven valuation that analyses over 1,000 data points and provides an objective market value. This ensures that price negotiations are based on facts and not emotions.
Step 3: The right sales strategy and legal preparation
With a valid sale price in hand, the legal framework conditions must be established. A key point is the correction of the land register. The community of heirs must be registered as the new owner. If you apply for this re-registration within two years of inheritance, it is free of charge. You will also need a certificate of inheritance or a notarised will to prove your legitimacy as heirs. Additionally, decide who will act as the main point of contact for the sales process. It makes sense to issue a notarised power of attorney to a co-heir or an external third party from all heirs. This person can then act on behalf of the community, speeding up the process by up to 50%. A detailed checklist for selling property helps ensure no important step is overlooked.
Step 4: Conduct the sales process and distribute the proceeds
The actual sales process includes marketing, organizing viewings, and negotiating with potential buyers. Once a buyer is found, the purchase contract must be drawn up by a notary. At the notary appointment, all co-heirs must be present or represented by an authorized person. The purchase price is transferred to a specially set up account of the community of heirs, not to individual heirs. After deducting all liabilities (e.g., remaining debts, sales costs), the net proceeds are paid out to the individual co-heirs according to the inheritance shares. This settlement should be recorded in a written contract to formally dissolve the community. The question, how a property is fairly divided, is thus finally resolved.
Step 5: Calculate Taxes and Costs Accurately
The sale proceeds are not the net profit. Two types of taxes are relevant: inheritance tax and speculative tax. Inheritance tax is levied on the value of the inheritance, with allowances varying greatly depending on the degree of kinship (e.g., €500,000 for spouses, €400,000 for children). Speculative tax on the capital gain does not apply if the deceased owned the property for more than 10 years or personally lived in it in the year of death and the two preceding years. This period is transferred to the heirs. Don't forget the costs:
Notary fees (approximately 1.5% of the purchase price)
Costs for the certificate of inheritance (depending on the value of the estate)
Broker commission if applicable (3-7% of the purchase price)
Costs for the valuation report (starting from approximately €500)
A precise calculation with our inheritance tax calculator protects you from unpleasant surprises. Only after deducting all taxes and costs is the final payout amount determined.
wie-verkaufe-ich-ein-haus-aus-erbengemeinschaft
When all else fails and a co-heir is permanently blocking the sale, the final recourse is partition auction. This is a special form of forced auction that any co-heir can apply for at the competent district court without the consent of the others. The aim is to convert the property into a divisible amount of money. However, this approach is associated with significant disadvantages. The proceeds are often 20-30% below the market value that could be achieved through a private sale. Additionally, there are high court and expert fees that further reduce the proceeds. Therefore, the partition auction should only be considered as an ultima ratio when all other options to resolve conflicts within the community of heirs have been exhausted.
Conclusion: A structured process maximises the benefit for all heirs
How is the proceeds from the house sale divided?
The proceeds from the sale are divided among the co-heirs according to the statutory or testamentary inheritance quotas, after deducting all costs and liabilities (e.g., remaining debts, sales costs).
Is there land transfer tax when a property is sold by an inheritance community?
No, the transfer of the property to the inheritance community does not incur land transfer tax. The buyer pays the regular land transfer tax, but the sale itself does not create any for the inheritance community.
What is the difference between selling the house and selling the inheritance share?
In the sale of the house, the inheritance community sells the property collectively. In the sale of an inheritance share, an individual co-heir sells their entire share of the inheritance community to another person. The buyer then enters the inheritance community with all rights and obligations.
Can the inheritance community rent out the house instead of selling it?
Yes, the inheritance community can also rent out the property. However, this requires a unanimous decision and an agreement on the management of the property and the distribution of the rental income.
What documents are needed for the sale?
The most important documents are a current land registry extract, the certificate of inheritance (or a notarized will with opening protocol), the building plans of the property, an energy performance certificate, and proof of any modernizations.
What is a distribution agreement?
The distribution agreement is a contract between the co-heirs that regulates the exact distribution of the estate. After the house sale, it is documented in writing how the proceeds are divided, to finally dissolve the inheritance community.
Additional useful links
Bundesfinanzministerium offers comprehensive information on inheritance and gift tax.
European Justice Portal provides information on inheritance law in Europe.
Statistisches Bundesamt (Destatis) delivers detailed information on construction prices and the real estate price index.
Statistisches Bundesamt (Destatis) offers tables on house and land prices.
Statistisches Bundesamt (Destatis) informs through a press release about current developments in residential property prices.
Bundesverwaltungsamt provides information on rights and obligations related to an inheritance.
FAQ
How is the proceeds from the house sale divided?
The proceeds from the sale, after deduction of all costs and liabilities (e.g., outstanding debts, selling costs), will be distributed among the co-heirs according to the statutory or testamentary inheritance quotas.
Is real estate transfer tax incurred when an inheritance community sells a property?
No, when the property is transferred to the community of heirs, no real estate transfer tax is incurred. The buyer also pays the regular real estate transfer tax, but the community of heirs itself does not incur any due to the sale.
What is the difference between selling the house and selling the inheritance share?
When selling a house, the community of heirs sells the property together. In the case of an inheritance share sale, an individual co-heir sells their entire share of the community of heirs to another person. The buyer then enters the community of heirs with all rights and obligations.
Can the community of heirs also rent out the house instead of selling it?
Yes, the community of heirs can also rent out the property. However, this also requires a unanimous decision and agreement on the management of the property and the distribution of rental income.
What documents are required for the sale?
The most important documents are a current land register extract, the certificate of inheritance (or a notarised will with an opening protocol), the property construction plans, an energy performance certificate, and proof of modernisations.
What is a settlement agreement?
The settlement agreement is a contract between the co-heirs that regulates the precise distribution of the estate. After the house is sold, the proceeds are documented here in writing to finally dissolve the community of heirs.
