How to Sell an Inherited House in Delaware

Step 1: Figure out how the house was titled

How the deed was held decides whether you need probate at all:

• Joint owners with right of survivorship (including spouses holding as tenants by the entirety): the surviving owner usually already owns the house. Probate generally isn't needed for the house itself. The settlement attorney will typically ask for a death certificate.
• In a trust: the successor trustee can usually sell under the trust's terms, without probate.
• In the deceased person's name alone: the estate normally has to be opened with the Register of Wills, and a personal representative appointed, before the house can be sold.

Step 2: Open the estate with the Register of Wills

Each Delaware county has its own Register of Wills: New Castle (Wilmington), Kent (Dover), and Sussex (Georgetown). The person named in the will as executor, or a next of kin if there's no will, applies to be appointed. Once appointed, the personal representative receives Letters Testamentary (with a will) or Letters of Administration (without one). That's the document the settlement attorney needs to see before closing.

Expect to provide the original will (if there is one), a death certificate, and information about heirs and assets. Many families use an estate attorney. We'd recommend it if there's any disagreement among heirs, significant debt, or unclear title.

Step 3: Understand the timing

• Creditor claims: Delaware gives creditors a window, generally up to eight months after death, to present claims against the estate. Many personal representatives keep enough money in the estate to cover possible claims until that window closes.
• Mortgage: if there's still a mortgage, payments are still due. Federal law generally stops lenders from calling the loan just because the owner died and the house passed to a relative, but missed payments can still lead to foreclosure.
• Insurance and utilities: tell the homeowner's insurer the house is vacant. Many policies limit coverage on vacant homes. Keep the heat on in winter to avoid frozen pipes.

Step 4: Decide what to do with the house

Step 5: Taxes to know about

• Step-up in basis: heirs generally inherit property at its fair market value on the date of death. If you sell soon after, there's often little or no capital gain. Get a date-of-death appraisal to document it.
• Delaware has no inheritance tax or estate tax (Delaware repealed its estate tax for deaths after 2017).
• Realty transfer tax: Delaware's transfer tax is generally 4% combined (state plus local), customarily split between buyer and seller unless the contract says otherwise.

This is general information, not legal or tax advice. Talk to a Delaware estate attorney and a tax professional about your situation.

How selling an inherited house to us works

1. Call or submit the form. We can talk even before the estate is opened.
2. We walk through the house with whoever has access and send a written offer.
3. Once the personal representative has Letters, we close at a Delaware settlement attorney. Take what you want from the house and leave the rest.