Selling an Inherited Property: Community of Heirs & Taxes

Article L-0067 · 24.09.2026 · 6 min read · Joé Christian Ewrard

What should be clarified first after an inheritance

First, check who has actually become an heir. This may be determined by a will, an inheritance agreement or the statutory rules of succession. What matters is not who has looked after the house until now or who has a key. What matters is the legally established status as an heir.

The estate should then be considered as a whole. Are there any loans, land charges, outstanding bills, rights of residence or other obligations? Does it include any other assets or debts? The potential proceeds from selling the house do not yet indicate how much can ultimately be distributed among the heirs.

You should also secure the property. This includes adequate insurance cover, frost protection, regular ventilation, inspecting the roof and pipes, and emptying the letterbox. These seemingly minor tasks prevent damage and subsequent discussions about who has fulfilled their obligations.

If there are doubts about the value of the estate, a lawyer or notary should be consulted at an early stage. An inheritance can generally only be disclaimed within six weeks. In certain cases involving other countries, the deadline is six months. When the deadline begins depends on when the heir becomes aware of the inheritance and the nature of their status as an heir. This should be assessed legally on a case-by-case basis. The relevant provision is [Section 1944 of the German Civil Code (BGB)](https://www.gesetze-im-internet.de/bgb/__1944.html).

Who decides what happens to the house in a community of heirs

Multiple heirs automatically form a community of heirs. The house is not divided into a physically separate share for each heir. It belongs to the community. An individual co-heir therefore cannot sell the house alone or issue a binding instruction to an estate agent to sell it on behalf of all the heirs.

In principle, all co-heirs must be involved in a private sale. This also applies if one person holds the majority of the shares in the estate. The necessary declarations and powers of attorney will be reviewed at the latest when the notarised purchase agreement is executed.

In practice, sales rarely fail because of the building. Unspoken expectations are more challenging. One heir wants to sell quickly. Another associates the house with the family. A third lives far away and only responds sporadically. A written agreement setting out who the point of contact is, which expenses require approval and the criteria used to decide on offers is helpful.

A co-heir may generally dispose of their share of the estate, but not of the house alone. Selling a share of an estate is legally and economically different from selling the property jointly. Before choosing this route, the implications should be explained by a notary or specialist lawyer.

How a realistic asking price is determined

The most common point of contention is the price. Some heirs want to start as high as possible to avoid selling below value. Others are concerned about ongoing costs and press for a quick conclusion. Both are understandable. However, neither position is a substitute for a transparent valuation.

For an inherited property, the location, plot, condition of the building, modernisation work, energy efficiency, rights recorded in the land register and actual demand should be considered together. A value assessed for tax purposes, an insurance value and the price achievable on the market serve different purposes. They are not automatically the same.

An estate agent should be able to explain which features form the basis of their price estimate. These include suitable comparable listings and, where available, actual market experience from similar sales. A high asking price is not yet a market value. However, a hasty price reduction is not a solution either.

A joint viewing with all heirs is not always possible. In that case, a complete photographic record, a written explanation of the property's condition and a discussion in which all parties receive the same information can help. This takes some of the personal tension out of the discussion.

What alternatives there are to a joint sale

Selling jointly often makes sense, but it is not the only option. One co-heir can take over the house and pay out the others. For this, the property value, inheritance shares, existing encumbrances and financing of the settlement must be clarified. The transfer requires notarial and tax advice.

Letting the property may also be an option. However, this ties the community of heirs together for longer. Decisions about repairs, tenant selection, reserves and future investments remain joint responsibilities. Those who already struggle to reach an agreement today are unlikely to resolve the conflict by letting the property.

If no agreement can be reached, a partition auction may be considered. This is not a normal property sale, but a court procedure to dissolve the community. The outcome is more difficult to control and may be less favourable financially. Before taking this step, the parties involved should seek legal advice and, where appropriate, use mediation.

A concrete basis for decision-making often helps: a reliable valuation, the estimated work required to prepare the property for sale, known ongoing costs and a clear presentation of the alternatives. This prevents feelings from being disputed as supposed facts.

Which documents are required for the sale

First, suitable proof of status as an heir is required. Depending on the case, a certificate of inheritance or an officially opened notarised will or inheritance contract together with the record of opening may suffice. The documents required by the land registry and the certifying notary should be clarified at an early stage.

For the property, an up-to-date extract from the land register, cadastral map, floor plans, details of living space and other areas, construction documents, energy performance certificate and evidence of modernisation work are usually required. For let properties, the tenancy agreement, statements and details of deposits are also needed. For condominiums, documents relating to the owners' association are also relevant.

Rights and actual uses require particular attention. A registered right of residence, right of way or old land charge may affect the sale. The same applies to undocumented extensions, discrepancies in plot boundaries or outbuildings whose approval status is unclear.

A common mistake is to market the house before the status of the heirs, powers of attorney or essential documents are in place. Prospective buyers lose confidence when key questions arise only after the viewing. A short preparation phase with a shared list of documents and clearly assigned responsibilities is preferable.

Which deadlines heirs need to keep in mind

In addition to the deadline for disclaiming the inheritance, there may be a tax reporting obligation. An acquisition subject to inheritance tax must generally be reported to the competent tax office within three months of becoming known. In the case of real estate, exemptions from the reporting obligation do not automatically apply. Whether and how the acquisition must be reported should be clarified with a tax adviser or the tax office. The legal basis is set out in [Section 30 ErbStG](https://www.gesetze-im-internet.de/erbstg_1974/__30.html).

The land register should also be checked. Registration of the heirs may be free of charge if the application to correct the land register is submitted within two years of the inheritance. This does not mean that every sale necessarily requires prior re-registration. The notary will clarify which evidence is sufficient in the specific case. The fee provision is set out in [number 14110 of the Annex to the GNotKG](https://www.gesetze-im-internet.de/gnotkg/anlage_1.html).

Further deadlines may arise from loans, insurance policies, tenancies, official correspondence or a tax return requested by the tax office. All correspondence and contracts should therefore be recorded centrally. A single shared overview is more reliable than several private filing systems.

Which taxes become relevant for an inherited house

Inheritance tax and income tax on a gain from a sale are separate matters. Whether inheritance tax is payable depends, among other things, on the relationship to the deceased, the total value of the inheritance, previous gifts and any applicable reliefs. The sale price alone does not answer this question.

In the event of a subsequent sale, a private disposal transaction may be relevant for tax purposes. In the case of an inheritance, the deceased's original acquisition date generally counts towards the holding period. For property, the ten-year period in particular must be considered. Exceptions may apply if the property was used as the owner's residence. The details are set out in [Section 23 EStG](https://www.gesetze-im-internet.de/estg/__23.html).

Additional matters may be relevant, particularly in communities of heirs. These include buying out a co-heir, a previous gift, business assets or a property abroad. Near the border with Luxemburg, cross-border residences, tax liabilities or estate regulations may also need to be considered.

Have the tax implications reviewed before the purchase agreement is signed or the house is transferred within the family. An estate agent can provide documents and sales data. Tax assessments are the responsibility of a tax adviser, while legal arrangements are the responsibility of a notary or lawyer.

What may be different when selling in the Eifel and around Trier

Properties vary considerably in the Eifelkreis Bitburg-Prüm, in Trier and Trier-Saarburg, in the Vulkaneifel and near the border with Luxemburg. In addition to townhouses and owner-occupied flats, there are former farmhouses, large plots, outbuildings and older houses that have been renovated several times. Comparing properties solely on the basis of living space is often insufficient here.

For older properties, complete building records or clear floor-area calculations are sometimes unavailable. Extensions, barns, access routes and utility rights should be checked before the property is marketed. The distance to places of work, amenities and transport links also affects which group of buyers will actually be interested.

If heirs live outside the region, a local contact should coordinate viewings, documents and appointments with tradespeople. The community of heirs nevertheless retains decision-making authority. Transparent reports to everyone involved prevent geographical distance from leading to mistrust.

As a first step, gather proof of inheritance, land register documents, contracts and details of any known encumbrances. Then appoint a contact person for the community of heirs and arrange for the property's condition and market value to be assessed transparently. Tax matters should be referred to a tax adviser before a binding decision is made, and legal matters to a notary or lawyer. This turns a stressful overall situation into an orderly process.

Frequently Asked Questions

Can a co-heir prevent the sale of an inherited house?

In principle, all required owners must participate in a private sale. If a co-heir permanently refuses to consent, a valuation, acquisition by one of the heirs or mediation should first be considered. A partition auction is possible, but its legal and financial implications should be discussed with a specialist lawyer.

Do we have to be entered in the land register before the sale?

A prior transfer of ownership is not required in every case. Depending on the circumstances, a notarised will together with the record of probate proceedings or a certificate of inheritance may serve as proof. The officiating notary should check at an early stage which specific documents are required.

Who pays ongoing costs and repairs?

Costs relating to the estate are generally paid from the estate; within the community of heirs, the shares of inheritance and the type of expense must be taken into account. Urgent measures to prevent damage must be assessed differently from voluntary modernisation work. Document expenses and decisions and seek legal advice in the event of a dispute.

Should we renovate the house before selling it?

Not every renovation pays off. Cleanliness, safe access, the rectification of minor obvious defects and complete documentation are often worthwhile. Major work should only be agreed jointly after assessing the condition, target group and potential benefits.

Can the sale of an inherited property be tax-free?

This is possible, but there is no one-size-fits-all answer. The deceased's acquisition of the property, the length of ownership and its use as a primary residence may be decisive. Have a tax adviser review the specific case before signing the contract.

What happens if a buyer pulls out shortly before the notary appointment?

Before notarisation, there is generally no valid property purchase agreement. Financing evidence, outstanding questions and the draft contract should therefore be clarified in good time. Neither an estate agent nor a seller can promise absolute certainty.

Topics: selling an inherited property, community of heirs, house sale Eifel, inheritance tax, capital gains tax, land register correction, partition auction, estate agent Bitburg

Responsible for this post: Joé Christian Ewrard — Owner & Broker IHK, PRIOCASA Immobilien & Financial services. Last updated: 24.09.2026. The draft was prepared with the support of artificial intelligence and reviewed and approved before publication (AI Transparency). This post does not replace legal or tax advice; for individual questions, please contact a notary, lawyer, or tax advisor.

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