Inheritance Manager
Heirs' community moderation
how do I sell a house from a community of heirs
Have you inherited a house, but the co-heirs are in disagreement? This is a situation familiar to over 70% of all communities of heirs and can jeopardize the property's value. This guide shows you how to approach the sales process in a structured manner and avoid financial losses.
With access to Google, BORIS, and Deep Research.
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 price disputes and ensuring a fair return.
The partition auction is the last resort when dealing with obstructive co-heirs, but it almost always leads to significant financial losses of 20-30%.
Selling a property within an heirs' community can present a severe test for many families. Emotional attachments and differing financial interests often lead to a standstill, which can reduce the value of the house by up to 1% per month. But how do you sell a house from an heirs' community without ending in costly disputes? The key lies in a structured approach based on clear rules and an objective data foundation. From unanimous decision-making to neutral value assessment and distribution of proceeds – this article safely guides you through all phases and shows you how to divide the assets fairly and profitably.
When several individuals inherit together, they automatically form an inheritance community according to § 2032 BGB. This community is not a permanent entity but is intended for settlement, i.e., the distribution of the estate. The problem: Decisions about estate items, such as a property, can only be made jointly. Unanimous consent of all co-heirs is required for the sale. Even a single co-heir who doesn't want 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 land tax and maintenance of several hundred euros per month. The decision-making within the inheritance community is therefore the first and biggest hurdle. A clear roadmap is essential to set the right course from the very beginning.
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 on. But what to do if a co-heir refuses the sale? There are several avenues you should explore before considering legal action:
Paying off the co-heir: The other heirs can offer the blocking 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.
Professional mediation: A neutral third party, such as offered in the Auctoa co-heirs moderation, can often break deadlock situations and find a solution that is profitable for all sides.
An agreement is almost always the most economically sensible path, as legal disputes can reduce the proceeds by 20-30%. Once an agreement is reached, the crucial step to determining the price follows.
Once you have agreed on the sale, the question of the right price arises. Differing ideas about the property's value are the most common cause of conflict after a basic agreement. A subjective estimate by 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 accepted foundation by all. This appraisal not only helps in determining the price but is also recognised by the tax authorities for inheritance tax assessment. A precise value is also crucial if you are considering selling to a co-heir. With the Auctoa Inheritance Manager, you receive an AI-supported valuation that analyses over 1,000 data points and delivers an objective market value. This ensures that price negotiations are based on facts, not emotions.
With a valid sale price in hand, the legal framework needs to 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 the inheritance, it is free of charge. Additionally, you need a certificate of inheritance or a notarized will to prove your legitimacy as heirs. Also, decide who will act as the primary contact for the sales process. It is advisable to issue a notarized power of attorney from all heirs to a co-heir or an external third party. This person can then act on behalf of the community, accelerating the process by up to 50%. A detailed checklist for property sales helps ensure no important step is overlooked.
The actual sales process includes marketing, organising viewings, and negotiations with prospective 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 authorised 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, costs of the sale), the net proceeds are distributed to the individual co-heirs according to their inheritance shares. This settlement should be recorded in a written contract to formally dissolve the community. The question of how a property is fairly divided is thus finally resolved.
The proceeds from the sale are not the net profit. Two types of tax are relevant: inheritance tax and speculation tax. Inheritance tax is charged on the value of the inherited share, with tax allowances varying significantly depending on the degree of kinship (e.g., €500,000 for spouses, €400,000 for children). Speculation tax on the profit from the sale is waived if the deceased owned the property for more than 10 years or lived in it during the year of death and the two preceding years. This period is transferred to the heirs. Don’t forget the expenses:
Notary fees (approx. 1.5% of the purchase price)
Cost of the certificate of inheritance (dependent on the value of the estate)
Possibly broker’s commission (3-7% of the purchase price)
Cost of the valuation report (from approx. €500)
Accurate calculation with our inheritance tax calculator protects against unpleasant surprises. Only after all taxes and costs have been deducted is the final payout amount determined.
If all else fails and a co-heir permanently blocks the sale, the last resort is a partition auction. This is a special form of forced auction that any co-heir can apply for at the competent local court, without the consent of the others. The aim is to convert the property into a divisible cash amount. However, this route 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 a last resort when all other options to resolve conflicts in the community of heirs have been exhausted.
Selling a house from an estate community is a challenging task, but with the right plan, it can be successfully accomplished. A unanimous decision, a neutral property valuation, and a clear sales strategy are the three pillars for a smooth process. Communicate openly and transparently to avoid conflicts. A data-driven evaluation using tools like the ImmoGPT chat from Auctoa provides an indisputable basis for all decisions and ensures the maximum return for each co-heir. Act strategically to avoid diminishing the inheritance through disputes and treat it as what it truly is: a valuable asset.
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) shares a press release about recent developments in residential property prices.
Bundesverwaltungsamt offers information on rights and obligations related to an inheritance.
How is the proceeds from the house sale divided?
The sale proceeds are divided among the co-heirs after deduction of all costs and liabilities (e.g. remaining debts, sale costs) according to the legally or testamentary determined inheritance quotas.
Is there land transfer tax when selling through an estate community?
No, no land transfer tax is incurred when the property is transferred to the estate community. The buyer also pays the standard land transfer tax; however, the sale itself does not result in any for the estate community.
What is the difference between selling the house and selling the inheritance share?
When selling the house, the inheritance community sells the property together. When selling 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 estate community rent out the house instead of selling it?
Yes, the estate community can also rent out the property. However, this also requires a unanimous decision and an agreement on managing the property and distributing 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 notarial will with an opening protocol), the building plans of the property, 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 exact distribution of the estate. After the house sale, it is documented in writing how the proceeds will be divided to finally dissolve the estate community.
