Selling an Inherited House in Delaware: Probate Steps and Timeline

Ready to sell and want a written offer? Start here: sell an inherited house in Delaware as-is.

Step 1: How was the house titled?

The deed decides whether you need probate for the house at all. Pull a copy from the county Recorder of Deeds (or ask a settlement attorney to pull it) and look at how the owners are listed.

If you're the surviving joint owner, the house may already be yours to sell. If it was in a trust, the trustee usually sells it without the Register of Wills. Everything below is about a house that was in the deceased owner's name alone.

Why won't the small estate affidavit cover the house?

Delaware's small estate affidavit is only for personal property, and it's off the table if the person owned Delaware real estate alone or as a tenant in common. Under 12 Del. C. §2306 (checked October 11, 2026), the affidavit requires that:

• the personal estate is worth no more than $50,000,
• at least 30 days have passed since the death, and
• the person "did not own real estate in Delaware, either solely or as tenants in common."

The limit was $30,000 until House Bill 333 was signed and took effect on June 10, 2026. The affidavit can still help with a small bank account or a car, but it gives no one authority to sign a deed. If the house was in the person's name alone, plan on a regular estate.

Step 2: How do you open the estate in each Delaware county?

You open the estate with the Register of Wills in the county where the person lived, not where the house is. The executor named in the will applies. If there's no will, a close relative applies to be administrator. Once appointed, the personal representative gets Letters Testamentary (with a will) or Letters of Administration (without one). Those Letters are what a settlement attorney needs to see before anyone can sign a deed for the estate.

Office details were checked on October 11, 2026. Hours, fees and forms change, so call before you go. Our Register of Wills office guide has more on each office.

Bring the original will (if there is one), a certified death certificate, and the names and addresses of the heirs. After Letters are granted, the personal representative has to file an inventory and appraisal of the estate's assets within 3 months (12 Del. C. §1905). The house goes on that inventory, so this is a good time to get a date-of-death appraisal. You'll want it later for taxes, too.

Many families hire a Delaware estate attorney, and we'd recommend one if the heirs don't agree, the estate has significant debt, or the title is unclear.

Step 3: Who can sign the deed?

Who signs depends on what the will says and whether the estate needs the money. Delaware's rules for selling a decedent's real estate are in Title 12, Chapter 27.

Before you list or sign a contract, ask the settlement attorney to confirm who has to sign. Finding out at the closing table that a sibling in another state never signed can delay the sale for weeks.

Step 4: What is the 8-month creditor window?

Claims that existed at death are generally barred unless they're presented within 8 months of the date of death. That's the rule in 12 Del. C. §2102(a) (checked October 11, 2026). The same section gives other deadlines:

• Claims that arise after death (for example, a contract with the personal representative) generally have 6 months (§2102(b)).
• A rejected claim is barred unless the creditor sues within 3 months of being notified of the rejection (§2102(c)).
• A deficiency claim on a mortgage bond can't be presented more than 8 months after death (§2102(e)(1)).

The 8-month window doesn't by itself stop a sale. Once someone has authority to sign, the house can usually be sold while the window is still open. But the personal representative is responsible for paying valid debts before distributing money to heirs. That's why many keep a reserve in the estate account until the window closes, rather than paying everything out right after closing.

Step 5: What happens to a mortgage on an inherited house?

The lender generally can't call the loan just because the house passed to a relative, but the payments are still due. The federal Garn-St Germain Act bars lenders from using a due-on-sale clause for "a transfer to a relative resulting from the death of a borrower" and for "a transfer where the spouse or children of the borrower become an owner of the property," on homes with fewer than five units (12 U.S.C. §1701j-3(d)).

When the servicer learns the borrower died, federal servicing rules require it to promptly "facilitate communication with any potential or confirmed successors in interest" and tell you what documents it needs to confirm your status (12 CFR §1024.38(b)(1)(vi)). Once you're confirmed, you can get loan information, including the payoff amount.

What to do:

1. Send the servicer a copy of the death certificate and, once you have them, the Letters.
2. Ask for a payoff statement and the monthly payment amount.
3. Keep paying if the estate can, even while you decide what to do. Missed payments can still lead to foreclosure.

A reverse mortgage works differently: it generally becomes due when the last borrower dies. See selling a house with a reverse mortgage.

Step 6: How do you protect a vacant inherited house?

Call the homeowner's insurer, keep the utilities on, and keep paying the property taxes. An empty house costs money every month, and problems grow when nobody is checking on it.

• Insurance: tell the insurer the owner has died and the house is empty. Many homeowner's policies limit coverage once a house has been vacant for a set period (often 30 or 60 days). Read the vacancy clause and ask about a vacancy endorsement or a vacant-dwelling policy.
• Utilities: keep electric and heat on through the winter, or have the plumbing professionally winterized. A frozen pipe in an empty house can run for weeks before anyone notices.
• Property taxes and sewer/water: keep them current. Unpaid county taxes become a lien that gets paid from the sale.
• Security: change the locks if many people have keys, forward the mail, and have someone check the house weekly.
• City rules: Wilmington has a vacant property registration program. See selling a vacant house for local details.

Add those costs up before you decide how long to hold. As an illustration only, $1,500 a month in taxes, insurance, utilities and upkeep over 8 months is $12,000, before any repairs.

Step 7: What taxes apply when an estate sells a house?

Delaware has no inheritance tax, and its estate tax was repealed for deaths after December 31, 2017 (81 Del. Laws c. 52). The federal estate tax only reaches very large estates. For most families, the taxes that matter are capital gains and the realty transfer tax.

Stepped-up basis, with a worked number

The IRS says the basis of inherited property is generally "the fair market value (FMV) of the property on the date of the decedent's death" (IRS, Gifts & Inheritances FAQ; Publication 551, checked October 11, 2026). Inherited property is also treated as held long-term, however soon it's sold (Publication 544).

Two cautions. If the house was owned jointly, generally only the deceased owner's share steps up (Publication 551 explains the rules). And if heirs hold the house for years while it rises in value, the gain above the date-of-death value can be taxable. See capital gains on a Delaware home sale, which also covers Delaware's withholding for nonresident sellers.

Realty transfer tax

Delaware's state transfer tax is 3%, or 2.5% where the full 1.5% local tax applies, so the combined rate is typically 4%. By statute it's split equally between buyer and seller (30 Del. C. §5402), unless the contract says otherwise. See our transfer tax guide.

What happens when heirs disagree? Partition in the Court of Chancery

Any co-owner can ask the Delaware Court of Chancery to divide the property or order it sold. Under 25 Del. C. §721, one or more co-owners may petition the Court of Chancery in the county where the land is. A house can't really be split in two, so if dividing it would hurt the owners' interests, the court orders it sold by a court-appointed trustee at public auction, and the sale must be approved before a deed issues (§729). Liens move to the sale proceeds, which are then divided (§§732–733).

Partition works, but it's slow, it costs legal fees, and a public auction rarely brings top dollar. Most families do better with one of these first:

• A buyout: one heir pays the others their share, based on an appraisal everyone accepts.
• Mediation: a neutral third party helps the heirs agree on price and timing.
• A written offer everyone can see: when every heir can see the same numbers, it's easier to agree.

For more, see when heirs or co-owners disagree.

What should out-of-state heirs know?

You can serve as personal representative and sell a Delaware house without living here, but there's extra paperwork and you'll need people on the ground.

• Nonresident personal representatives must file an irrevocable power of attorney naming the Register of Wills to receive legal papers for the estate, before Letters are issued (12 Del. C. §1506).
• Signing: ask the settlement attorney early how they handle signers in other states. Deeds and other closing documents usually have to be notarized.
• Taxes: Delaware has withholding rules for nonresident sellers. The settlement attorney will tell you which form applies; our capital gains guide covers it.
• Local help: line up someone to hold keys, check the house, and let in appraisers and buyers. Clearing out the house takes time to arrange from a distance, so plan it early.

Should you keep, rent or sell the house?

A sale by a personal representative while administering the estate is exempt from Delaware's seller disclosure law (6 Del. C. §2577), so estate houses often sell as-is. Federal lead-paint disclosure still applies to most pre-1978 houses. More in selling a house as-is in Delaware.

What does a typical timeline look like?

How long it takes to open an estate varies by county and by how complete your paperwork is. Ask your county's Register of Wills what to expect.

How does selling an estate house to us work?

1. Call (302) 525-0787 or use the form. We can talk before the estate is even opened.
2. We walk through the house with whoever has access and send a written offer that shows the math, so every heir sees the same numbers.
3. Once the personal representative has Letters (and a court order, if one is needed), we close at a Delaware settlement attorney. Take what you want from the house and leave the rest.

If the house is in good shape and there's no rush, listing may net more. We'll say so. Compare paths with the cash vs. list calculator.

Frequently asked questions

Sources

• 12 Del. C. §2306, small estates (checked Oct 11, 2026)
• House Bill 333 (153rd GA), signed June 10, 2026
• 12 Del. C. §1506, nonresident personal representatives
• 12 Del. C. §1905, inventory and appraisal
• 12 Del. C. §2102, limitations on claims
• 12 Del. C. Chapter 27, sale of a decedent's real estate
• 25 Del. C. §§721–733, partition
• 30 Del. C. §5402, realty transfer tax
• 81 Del. Laws c. 52, estate tax repeal
• 6 Del. C. §2577, seller disclosure exemptions
• 12 U.S.C. §1701j-3 (Garn-St Germain Act)
• 12 CFR §1024.38, successors in interest (CFPB)
• IRS, Gifts & Inheritances FAQ
• IRS Publication 551, Basis of Assets
• IRS Publication 544, Sales and Other Dispositions of Assets
• Kent County Register of Wills
• Sussex County Register of Wills
• New Castle County Register of Wills

General information, not legal, tax, or financial advice. Laws, fees, and schedules change. Confirm with the office named or your attorney.