Selling Property During Probate: What Executors Need to Know
You can market an estate property and accept an offer before you have probate — but you cannot exchange contracts until the grant is in hand. Here is the complete guide to selling property during the probate process.
Before vs After the Grant of Probate
Before the grant — permitted
- → Instruct an estate agent and put the property on the market
- → Conduct viewings and accept offers
- → Instruct a conveyancing solicitor
- → Obtain a RICS valuation for probate and asking price purposes
- → Begin conveyancing searches and title investigation
- → Negotiate sale price and agree terms subject to grant
Requires the grant
- → Exchange of contracts (legally binding sale)
- → Signing the transfer deed (TR1)
- → Completion and handover of keys
- → Registration of the buyer as new owner at Land Registry
Step-by-Step: Selling Estate Property
Obtain a probate valuation
Instruct a RICS-qualified surveyor to provide a formal market value at the date of death. This figure is used for the IHT return and sets the CGT base cost. Obtain a second opinion if you intend to sell quickly — you need to justify to beneficiaries that the price achieved is reasonable.
Market the property (no grant needed)
Instruct an estate agent and list the property. Inform the agent that probate is pending — this is standard for estate sales and most buyers accept it. Be transparent with potential buyers about the likely timeline for exchange.
Apply for probate in parallel
Apply for the grant of probate (PA1P) or letters of administration (PA1A) as soon as the IHT position is confirmed. Current wait: 8–16 weeks. Start this immediately to minimise the time between offer acceptance and ability to exchange.
Instruct conveyancing solicitors
Instruct solicitors to act on the sale. They will prepare the contract, property information forms, and fittings/contents form. All documentation can be prepared and disclosed to the buyer's solicitor before the grant is received.
Exchange contracts (grant required)
Once the grant is received, provide a sealed office copy to your conveyancing solicitor. Exchange of contracts is then possible. At exchange, the executor signs the contract as 'personal representative of [deceased]'. The buyer pays a 10% deposit.
Complete the sale
At completion, the executor signs the TR1 transfer deed. The solicitor pays any outstanding mortgage, costs, and estate agent fees, and the net proceeds are transferred to the estate's bank account. The Land Registry registers the buyer as the new owner.
CGT on the Sale of Estate Property
| Item | Rule (2025/26) |
|---|---|
| Base cost for CGT | Probate value (market value at date of death) |
| CGT rate on residential property | 24% (from 30 October 2024) |
| CGT rate on other property | 20% |
| Annual exempt amount | £3,000 — available for tax year of death and following 2 tax years |
| Principal private residence relief | NOT available — PPR dies with the owner |
| Fall in value relief | If property sells for LESS than probate value within 4 years, use form IHT38 to reduce IHT retrospectively |
| Reporting deadline | 60 days from completion for residential property CGT report (UK Property Return) |
Frequently Asked Questions
Do executors need probate before they can sell a property?
For a property registered at Land Registry in the deceased's sole name, the executor needs a grant of probate (or letters of administration for an intestate estate) before they can complete the sale and register the transfer. However, executors can: (1) instruct an estate agent and market the property before the grant; (2) accept an offer and agree a sale price before the grant; (3) instruct solicitors and begin the conveyancing process before the grant. The critical restriction is that exchange of contracts cannot take place until the grant has been obtained. The buyer and their solicitors will require sight of the grant as evidence that the executor has the legal authority to sell. Practical approach: begin marketing immediately, apply for probate in parallel, and aim to have the grant ready by the time buyers are ready to exchange.
What is the conveyancing process for selling estate property?
The conveyancing process for an estate sale follows the standard property conveyancing process with some additional steps: (1) Instruct a solicitor to act on the sale — the executor acts as the seller, but confirms they are acting in their capacity as personal representative of the deceased; (2) Gather documents: the grant of probate/letters of administration, the death certificate, the original title deeds (if unregistered), and evidence of the executor's authority; (3) Prepare the property information forms — these must disclose matters the executor is aware of, including the fact that the seller is a personal representative; (4) Exchange of contracts: cannot occur without the grant; (5) Completion: the executor signs the transfer deed (TR1) in their capacity as executor. The transfer deed identifies them as 'personal representative of [name of deceased]'; (6) Land Registry registration: the title is registered in the buyer's name, removing any reference to the deceased's title.
What happens to CGT if the executor sells the property during administration?
Executors can sell a property at a gain during the administration period and the estate will be subject to capital gains tax on the profit. The rules for CGT during the administration period: (1) The estate's 'base cost' for CGT purposes is the probate value (market value at the date of death — the same figure used for IHT). Any gain since the date of death is taxable in the administration period; (2) Residential property: CGT rate for estates is 24% (from 30 October 2024); other property: 20%; (3) Annual exempt amount: the estate gets the normal annual CGT exempt amount (£3,000 for 2025/26) for the tax year of death and the following two tax years; (4) Principal private residence relief: does NOT apply to the estate even if the property was the deceased's main home. PPR dies with the owner; (5) Lettings relief: similarly does not apply. If the property has fallen in value since death (e.g. in a declining market), there is no CGT, and the fall in value can reduce IHT via a relief called 'fall in value relief' (form IHT38).
Can the executor accept an offer below market value?
An executor has a duty to obtain the best price reasonably available for estate assets and must act in the interests of all beneficiaries. Selling substantially below market value without justification is a breach of fiduciary duty. However, there are legitimate reasons to accept a lower offer: (1) A quicker sale at a lower price may be justified if the estate needs cash for IHT or debts; (2) The property may have genuine defects that justify a lower price; (3) Cash buyers can justify a small discount over mortgage buyers (faster transaction, lower risk of fall-through); (4) The beneficiaries have all agreed to the sale at a particular price. An executor should obtain a formal RICS valuation before accepting any offer significantly below the asking price, keep a record of the reasoning, and notify the beneficiaries. Selling to a connected person (family member of the executor) at below market value creates particular risks of a claim by the beneficiaries.
What happens to the sale proceeds after exchange and completion?
Once the sale completes: (1) The conveyancing solicitor pays off any outstanding mortgage from the completion funds; (2) The net sale proceeds are paid to the executor's estate bank account; (3) The executor reports the sale to HMRC (as part of the estate's self-assessment CGT return if there is a gain, or if there is a gain over the annual exempt amount); (4) The sale proceeds form part of the estate's assets to be distributed to the beneficiaries in accordance with the will or intestacy rules, after all debts, taxes, and administration expenses are paid. There is no requirement to distribute the proceeds immediately — the executor can hold them while completing the rest of the administration. If the property was the main asset in the estate and the sale proceeds are needed to pay IHT, the solicitor should ensure the IHT is paid to HMRC before or at completion.
Give Your Executor the Right Powers Over Your Property
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