When property is left to the beneficiaries of a will, the location of the asset may complicate the process of selling it. This is particularly true when a property is situated in another state from where the executor or beneficiary resides.
In most cases, executor and beneficiaries may be unfamiliar with property laws if they did not grow up in the same state as the property. This may make it difficult to determine how best to handle the sale of the property and ensure that it is done legally and ethically.
In most cases, some form of maintenance works are required before the property can be put on the market for sale to improve not only marketability, but also the returns to beneficiaries.
Some points that you may wish to consider are as follows;
1. Legal representation
Having a legal representative in the same state as the property can prove helpful and save time. They are familiar with the local property laws and regulations, making it easier to handle the sale in an efficient manner.
2. Tax implications
The executor or beneficiary may be liable for Capital Gains Tax (CGT) however, an application for an exemption can be made. A legal representative can advise on the applicable tax laws and how to manage them.
For further information, see the following link on how CGT is applied;
3. Property clearance and maintenance
It may be necessary to clear the property of any personal possessions and items of sentimental value before a sale. This may involve organising removalists, storage facilities, or other services. Maintenance works may also need to be carried out to improve marketability and returns.
Having the right maintenance contacts and local trades knowledge is imperative to ensure any works undertaken at the property are completed with care and to a high standard.
4. Local market
An understanding of the local real estate market is essential in order to achieve the best possible sales price for the property. This can be challenging to manage if you are located in another state to the inherited property. Due to our experience in selling property across Australia, we have built valuable relationships with local agencies in every corner of our country.
Should you find yourself in this situation, help is at hand. From providing an understanding of the property market in the local area, arranging property clearance and clean up, or for a referral to a legal or accounting professional in the subject state, our team is here to provide you with ongoing support and guidance.
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