How Do I Sell an Inherited Property in Florida?

Selling an inherited property in Florida involves legal, tax, and practical steps that a standard sale doesn't. Here's what heirs and estate representatives need to know.

Step 1: Establish clear title and authority to sell

Before you can list an inherited property, you need to confirm who has legal authority to sell it. This depends on how the property was titled and whether there was a will.

Probate: If the deceased owned the property in their individual name without a beneficiary designation or joint tenancy, the property typically passes through probate — the court-supervised process of administering the estate. The personal representative (executor) named in the will, or appointed by the court if there is no will, has authority to sell the property once the probate court authorizes it.

Trust: If the property was held in a revocable living trust, the successor trustee has authority to sell without probate. The trustee will need to provide the trust documents to the title company.

Joint tenancy with right of survivorship: If the property was co-owned with right of survivorship, the surviving owner takes full ownership automatically upon death, with a recorded death certificate. No probate required for the property.

Lady Bird deed (enhanced life estate deed): Florida allows Lady Bird deeds, which transfer property automatically to named beneficiaries at death without probate. If the property was conveyed this way, the beneficiary takes title with a recorded death certificate.

Consult a Florida probate attorney if you're unsure which path applies. Attempting to sell without clear authority will cause the transaction to fail at the title search.

Step 2: Understand the stepped-up basis

One of the most significant tax advantages of inherited property is the stepped-up basis. When you inherit property, your cost basis for capital gains purposes is generally the fair market value of the property on the date of the decedent's death — not what the original owner paid for it.

This means if the deceased bought the property for $150,000 and it was worth $600,000 at death, your basis is $600,000. If you sell it for $600,000, you owe no capital gains tax. If you sell it for $650,000, you owe capital gains only on the $50,000 gain.

The stepped-up basis significantly reduces or eliminates capital gains tax for many inherited property sales. Consult a CPA to confirm your specific situation.

Step 3: Coordinate among heirs (if multiple)

If multiple heirs inherit the property, all must agree to sell and sign the closing documents (or authorize a representative to do so). Disagreements among heirs can delay or prevent a sale. If heirs cannot agree, a partition action — a court proceeding to force a sale — is an option, but it's expensive and time-consuming.

Practical steps when multiple heirs are involved:

• Confirm all heirs' contact information and willingness to sell
• Determine how proceeds will be divided
• Identify who will coordinate with the listing agent and title company
• Confirm all heirs can sign documents (or arrange power of attorney for those who cannot attend closing)

Step 4: Address the property's condition

Inherited properties are often vacant and may have deferred maintenance. Before listing:

• Have the property professionally cleaned
• Address any obvious safety or habitability issues
• Secure the property if it's been vacant
• Confirm utilities are active for showings

Selling as-is is common for inherited properties — heirs often don't want to invest in repairs on a property they don't live in. The Florida AS IS contract allows this while still requiring disclosure of known material defects.

Step 5: The sale process

Once title is clear and authority to sell is established, the sale process is similar to any other Florida real estate transaction. The personal representative or trustee signs the listing agreement and closing documents on behalf of the estate or trust.

The title company will require:

• Letters of Administration (probate) or Trust documents confirming authority
• Death certificate
• Any court orders authorizing the sale (if probate)

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Kinsey Haddock P.A. · Broker Associate · Coldwell Banker Realty — Panhandle · License #BK3253849