Inheriting a property quickly raises a very practical question: can you sell it, and if so, when and under what conditions?
Between the administrative settlement of the estate, the management of potential joint ownership between several heirs and the specific tax rules governing capital gains, selling an inherited property follows a different process from a standard property sale.
This article explains the essential preliminary steps, the decision-making rules between heirs and the applicable tax treatment, helping you approach the sale with greater confidence. It also covers the realistic timeframes you should anticipate and the most common pitfalls to avoid.
In summary
- Before putting the property on the market, the estate must be handled by a notary and a property ownership certificate (attestation de propriété immobilière) must be drawn up in the heirs' names.
- A property inherited by several people is held in joint ownership (indivision). Selling it to a third party generally requires the unanimous agreement of all co-owners.
- For capital gains tax purposes, the acquisition value used is the value declared in the estate, not the price originally paid by the deceased.
- Inheritance tax already paid and capital gains tax due upon resale are two separate taxes and do not automatically offset one another.
- One heir can buy out the other heirs' shares (rachat de soulte) instead of selling the property to a third party.
- In certain circumstances, the property can be put on the market before the estate has been fully settled, provided that the necessary formalities are respected.
Settling the Estate Before Selling: The Preliminary Steps
Before even considering publishing a property listing or organising viewings, several inheritance formalities must be completed.
These formalities determine whether the heirs have the legal authority to sign a sale agreement.
Opening the Estate and Identifying the Heirs
The process begins with opening the estate with a notary.
The notary identifies all the heirs, establishes the assets and liabilities of the estate and determines each heir's respective share.
This step is essential whenever real estate forms part of the deceased's estate, as French law requires the involvement of a notary to transfer ownership of real property through inheritance.
The Property Ownership Certificate: Essential for Selling
Once the estate settlement process is sufficiently advanced, the notary draws up a property ownership certificate (attestation de propriété immobilière), sometimes referred to as an attestation immobilière après décès.
This official document confirms the transfer of ownership of the property to the heirs and allows the transfer to be registered with the French land registration service.
In practical terms, without this certificate, the heirs do not have an enforceable title deed allowing them to sign the final notarised deed of sale. It is therefore this document that makes the sale of an inherited property legally possible.
The certificate can be drawn up relatively early in the inheritance process, even before all the tax and administrative aspects of the estate have been fully settled. This explains why, in some cases, the property can be put on the market sooner than might be expected.
Checking for a Will or Previous Gifts
It is also essential to check with the notary whether the deceased left a will or made any gifts during their lifetime.
These arrangements may change how ownership of the property is divided between the heirs or create specific rights, such as usufruct or a specific legacy.
These issues should be clarified before putting the property on the market to avoid disputes later in the process.
If the estate is particularly complex or contentious, there are solutions available to resolve a blocked inheritance and allow the property to be sold despite the difficulties.
Joint Ownership Between Heirs: Understanding the Unanimity Rule
When a property is inherited by several heirs, it is not physically divided between them room by room or according to specific areas of the property. Instead, each heir owns a share of the property as a whole.
This is known as joint ownership between heirs (indivision successorale).
Why Is Unanimous Agreement Required to Sell?
Under the French Civil Code, acts involving the disposal of jointly owned property—including a sale—generally require the agreement of all co-owners.
In other words, if a property is owned in equal shares by three heirs, all three must agree before the deed of sale can be signed, regardless of the size of their respective shares.
This means that a single heir who refuses to sell can potentially block a sale to a third party, which is a frequent source of family disputes.
What Can You Do if the Heirs Disagree?
There are certain exceptions. In particular, co-owners holding at least two-thirds of the joint ownership rights may, under specific circumstances and subject to strict procedural requirements, ask the court for authorization to sell the property.
In practice, however, discussion and mediation between the heirs, with the support of the notary, often remain the quickest solution.
Understanding the options available when co-owners disagree over the sale of a jointly owned property can help resolve the situation without necessarily waiting for unanimous agreement from all parties.
Before starting lengthy legal proceedings, it can also be useful to contact a local Optimhome real estate advisor to obtain an objective valuation of the property and help facilitate discussions between the heirs around a concrete sale proposal.
One Heir Wants to Buy Out the Others: The Buyout Payment
It is not uncommon for one heir to want to keep the property—either because of its sentimental value or because they already live there—rather than see it sold to a third party.
In this situation, there is an alternative: a buyout payment (rachat de soulte).
How Does a Buyout Payment Work?
A rachat de soulte allows the heir who wishes to keep the property to buy the ownership shares held by the other co-heirs.
That heir then becomes the sole owner of the property and pays financial compensation—the soulte—to the other heirs, corresponding to the value of their respective shares.
The transaction is formalised before a notary through a deed of partition and is subject to partition duties calculated on the value of the property.
How Is the Property Valued?
The value used for the buyout must reflect the property's actual market value at the time of the partition rather than an outdated or arbitrary estimate.
For this reason, obtaining an online property valuation or an on-site valuation from a professional is strongly recommended before determining the amount of the buyout.
This helps prevent imbalances between the heirs and reduces the risk of future disputes.
An online property valuation can quickly provide an initial indication of the property's value before refining the figure with a local real estate professional.
Financing the Buyout
Buying out the other heirs' shares often requires financing, generally through a dedicated bank loan corresponding to the value of the shares being purchased.
Banks assess this type of application in much the same way as a standard mortgage, taking into account the repayment capacity of the heir who wishes to take full ownership of the property.
Capital Gains Tax on an Inherited Property
This is often one of the most misunderstood aspects for heirs: how is the capital gain calculated when you sell a property received through inheritance, even though you never purchased it yourself?
The Acquisition Value Used: The Value Declared in the Estate
When calculating the taxable capital gain on the sale of an inherited property, the French tax authorities do not use the price originally paid by the deceased.
Instead, they use the value of the property declared in the inheritance tax return and used to calculate inheritance tax.
This is a fundamental point to understand when selling an inherited property and avoiding unexpected tax liabilities: the higher the value declared in the estate, the lower the taxable capital gain will be.
The capital gain may even be zero if the property is sold relatively quickly after the inheritance and local market prices have not changed significantly.
A Practical Example
Let's take a simplified example.
The deceased purchased an apartment 30 years ago for €60,000. At the time of death, the property is valued and declared in the estate at €220,000.
If the heirs sell the property two years later for €235,000, the taxable capital gain will be calculated on the difference between €235,000 and €220,000, subject to any applicable costs and qualifying expenses.
It will not be calculated on the difference between €235,000 and the €60,000 originally paid by the deceased.
The value declared in the estate therefore serves as the basis for the calculation, which often means that the tax treatment of an inherited property's resale is more favourable than that of a property purchased in the usual way.
Allowances Based on the Length of Ownership
As with any property capital gain, progressive allowances apply according to the length of time the property has been held.
For an inherited property, this period is calculated from the date of death, not from the date on which the deceased originally purchased the property.
A full exemption from income tax is reached after a certain number of years of ownership. Social security contributions are subject to a separate system, with full exemption applying after a longer holding period.
The deceased's principal residence may also qualify for specific exemptions if it is sold quickly by the heirs and certain conditions are met.
It is therefore advisable to check the applicable rules with the notary on a case-by-case basis.
Inheritance Tax Already Paid and Capital Gains Tax: Two Separate Taxes
Many heirs understandably ask the same question: if inheritance tax has already been paid on the value of the property, do you also have to pay capital gains tax when the property is sold?
The answer is yes. These are two separate taxes and they do not automatically offset one another.
Inheritance tax is calculated once, at the time of death, based on the value of the assets transferred. The amount depends on the heir's relationship to the deceased and any applicable allowances.
Capital gains tax, on the other hand, only arises when the property is subsequently sold and applies only to the increase in value between the date of death and the date of sale.
In practical terms, if the property is sold shortly after the death for a price close to the value declared in the estate, the taxable capital gain may be very low or even zero.
However, any inheritance tax due will still have been calculated and paid independently of what subsequently happens to the property.
Practical Timeframes to Consider Before Selling
Selling an inherited property generally takes longer than a standard property sale because of the inheritance formalities involved. Anticipating these timeframes can help avoid unrealistic expectations.
Can You Put the Property on the Market Before the Estate Is Fully Settled?
The good news is that it is often possible to begin marketing the property—publishing a listing, organising viewings and, under certain conditions, even signing a preliminary sale agreement—before all the tax and administrative aspects of the estate have been fully settled.
However, the property ownership certificate must be available before the final deed of sale is signed before the notary, and all joint heirs must agree to the sale.
Many real estate advisors therefore begin assisting families while the estate is still being settled, helping them prepare the sale and save valuable time.
How Long Does the Entire Process Take?
Between opening the estate, obtaining the property ownership certificate, finding a buyer and signing the final deed of sale, the process generally takes several months.
In more complex cases, it can take more than a year, particularly when there are numerous heirs, properties located in different areas or disagreements that need to be resolved.
Starting the marketing process early, alongside the settlement of the estate where possible, can significantly reduce the overall timeframe.
Work with an Optimhome Real Estate Advisor
Selling an inherited property involves a combination of legal, tax and sometimes family considerations, while also requiring a realistic sale price to be established.
An Optimhome real estate advisor can support you at every stage of your property sale, from the initial valuation—which is often required when preparing the inheritance declaration—to finding a buyer and coordinating with the notary for the final signature.
Thanks to their detailed knowledge of the local property market, they can help establish an appropriate market value, whether the property is being sold to a third party or one heir is buying out the shares of the others.
You can browse the property listings offered by Optimhome advisors to get an idea of properties currently available in your area and contact a local professional directly to move forward with greater confidence.
Conclusion
Selling an inherited property follows a specific process that is useful to keep in mind:
- First, complete the essential inheritance formalities, particularly obtaining the property ownership certificate from the notary.
- Remember the unanimity rule when a property is jointly owned by several heirs, and anticipate discussions if disagreements arise.
- Consider a buyout payment (rachat de soulte) if one heir wishes to keep the property rather than sell it to a third party.
- Remember that the capital gain is calculated using the value declared in the estate, not the price originally paid by the deceased.
- Keep in mind that inheritance tax and capital gains tax are two separate taxes and may both apply.
- Anticipate the actual time required for the process and, where possible, begin marketing the property before the estate has been fully settled.
This type of sale can be technically complex, and every family and estate has its own specific circumstances.
Seeking assistance from a notary for the legal aspects and a real estate professional for the sale itself remains the best way to complete the process successfully while avoiding potentially costly mistakes.
FAQ
Do You Have to Wait Until the Estate Is Fully Settled Before Selling the Property?
No. It is often possible to begin marketing the property before the estate has been completely settled, once the property ownership certificate has been drawn up.
However, this certificate, together with the agreement of all heirs holding the property jointly, is required before the final deed of sale can be signed.
Can a Single Heir Block the Sale of a Jointly Owned Property?
Yes. In principle, selling a jointly owned property to a third party requires the unanimous agreement of all co-owners. This means that one heir's refusal can prevent the sale from proceeding.
However, legal mechanisms are available in certain circumstances to resolve such a deadlock, including court proceedings.
How Is the Capital Gain Calculated When I Sell an Inherited Property?
The acquisition value used to calculate the capital gain is the value of the property declared in the estate, not the price originally paid by the deceased.
The taxable capital gain therefore corresponds to the difference between the resale price and the value declared in the estate, subject to any applicable allowances based on the length of ownership.
Do I Have to Pay Both Inheritance Tax and Capital Gains Tax?
Yes. These are two separate taxes and both may apply.
Inheritance tax is calculated once, at the time of death, based on the value of the assets transferred. Capital gains tax only applies to any increase in the property's value between the date of death and its subsequent resale.
What Is a Buyout Payment and When Should You Consider One?
A buyout payment (rachat de soulte) allows one heir to purchase the shares held by the other co-owners and become the sole owner of the property in exchange for financial compensation.
It can be particularly useful when one heir wishes to keep the property rather than see it sold to a third party, for example if they already live there.
What Should You Do if the Heirs Disagree About the Price or the Sale?
It is advisable to begin by obtaining an objective professional valuation to establish a reliable basis for discussion.
The heirs can then discuss the situation with the support of the notary or, where appropriate, a family mediator.
Specific legal solutions may also make it possible to end joint ownership without waiting for unanimous agreement if the situation remains deadlocked.
Does the Situation Change if a Parent Moved into a Nursing Home Before Their Death?
If the deceased had already left their home to move into a nursing home or an EHPAD before their death, certain tax rules relating to the principal residence may differ.
The procedures for selling the home of a parent who has moved into a nursing home can help distinguish this situation from one where the person died while still living at home.
Whether your project involves selling a property shortly after an inheritance or one heir buying out the shares of the others, structuring your property sale project with professional support remains the best way to secure each stage of the process and achieve a successful outcome.
Author :
Fabrice DOBROWOLSKI - Optimhome Network Development Director
Optimhome offers you personalized support for your real estate project. Benefit from all my advice, based on several years of experience, to ensure the success of your project.
