How long does it take to change property ownership?

Transferring the property title into the sole name of the surviving tenant can take 1-2 weeks or longer if the mortgage is registered on the property title. On the other hand, transferring the property title into the name of the executor can take approximately three months.

What questions should I ask before buying a deceased estate?

While the legislation surrounding the selling and buying of deceased estates varies from state to state, you should generally consider the following: Has the probate or the letter of administration been granted? Has the property title either been transferred to the name of the surviving spouse, beneficiary or the executor? Is there a mortgage on the property? If so, has the lender provided consent for the title transfer? Have I surrounded myself with the right professionals to help me through the process?

What is the most common sale method for a deceased estate?

An auction is the fairest and most transparent way to sell a deceased estate.

Which legislation governs deceased estates?

Administration of a deceased estate, including probate and the transfer of the property title, is governed by each state and territory's own succession and probate legislation, not the ATO. The ATO separately governs the tax treatment of any later sale, such as capital gains tax.

Are deceased estates cheaper?

Buying a deceased estate can allow you to buy a cheap property, but very much like buying any home, it depends on the property. The house will likely go to auction and if the house has been kept in good condition there's no reason it wouldn't sell at market value. You may be more likely to find a property which has been neglected that you can pick up more cheaply, but you'll then need to consider the cost of repairs and renovations. There could also be a complicated legal process which may add further costs to buying a deceased estate.

Deceased estate sales: bargain buy or big mistake?

Q: What is a deceased estate?

A deceased estate includes the property and assets of a person who has passed away. Generally, the deceased estate is held in trust until the transfer of the property and assets to the nominated beneficiaries. The deceased estate is administered by an executor appointed in the will or an administrator appointed by court.

When a person passes away their estate is often left as inheritance or sold as a deceased estate.
Buying a deceased estate can offer a good bargain, but there are legal processes to be aware of.
You will need to engage with professionals, like a conveyancer, to ensure a smooth process.

Purchasing a deceased estate can represent good value because the seller is usually keen to dispose of the property. But deceased estate sales can carry extra legal baggage. You need to employ a good conveyancer to help you conduct the necessary research on the property and do all the normal legwork you'd do in making sure the property is worth the price.

What is a deceased estate sale?

When someone dies, the wealth and assets they leave behind is called their estate. This includes their property. In some cases, a beneficiary inherits the deceased's property and lives in it. But sometimes the estate is sold.

Deceased estate sales can take place as public auctions or private sales, just like other properties.

In a deceased estate sale the seller may be a family member who has inherited the property and wishes to sell. Or it may be an executor appointed in the will or an administrator appointed by court (for example, the state trustee). In these cases, much like in normal property sales, the executor uses a real estate agent to conduct the sale.

How to find deceased estate properties for sale

Do your research

Although buying a deceased estate can be a good opportunity to secure a property in a well-established location for a good price, there are important tax and legal implications. You need to speak with professionals such as conveyancers, property tax specialists, buyer's advocates and the nominated executor to fully understand the process and paperwork required. You should also undertake market research to become familiar with property values to ensure that you are getting a reasonable price and to understand the capital growth potential.

Where to find properties for sale

Real estate agencies will commonly advertise deceased estates. You can also find websites which advertise deceased estates more specifically, like Real Estate Deals Australia (REDA).

Depending on where you live, your state trustee or equivalent may list deceased estates for sale.

Our expert says: Understand your tax obligations when you inherit a deceased estate

"If you are inheriting a deceased estate, rather than buying, there are a couple of costs you might need to think about. The good news is that there are no inheritance or estate taxes to pay in Australia. However, you may need to pay a concessional transfer duty rate. In NSW, that's $100.

If you decide you want to sell the property, then you may have tax obligations.

Capital gains tax may apply if you sell an asset that you inherited, but also, it may not! There are a lot of factors that come into play here, such as the date the person died, when you acquired the property and whether you or the deceased was a foreign resident. It's best to speak to a solicitor or conveyancer to work with you on your tax situation."

Rebecca Pike

Editor, Money

How to buy a deceased estate

If you're thinking of purchasing a deceased estate, make sure you take the following steps to ensure that you cover all the legal and administrative groundwork.

Search for deceased estate sales. Check the State Trustee website in the state you're looking to buy to see if they advertise deceased estates. Alternatively, you can look at the Real Estate Deals Australia website.
Get your finances together. Get your finances in order so you can move quickly once all relevant paperwork has been granted. Compare different home loans to find one with competitive interest and attractive features. Always aim for a 20% deposit to avoid paying lenders mortgage insurance (LMI).
Request probate or administration. You should request a copy of the probate (proof that a will is valid) or the letter of administration so that you know you're dealing with the authorised executor of the estate. If letters of administration have been granted, then the sale can proceed as normal. However, if this documentation has not been granted, the sale may be delayed.
Review property ownership. If you're thinking of purchasing a deceased estate, you should review the ownership structure of the property. In NSW and Queensland, a property cannot be sold with a deceased person's name on the title. The property must be transferred to the sole name of the surviving spouse or to the executor before the property can be transferred. Keep in mind that this process can be time-consuming, so try to have this prepared before entering the contract of sale.
Transaction. Once a price has been agreed upon (the deceased property will usually be sold via auction), you will need to pay a deposit. If the probate has been granted, then the sale can proceed as normal. If not, there may be delays to the process.

Pros and cons for buying a deceased estate

Pros

Value. Deceased properties are often sold for a 'bargain' or for market value, so this can represent a good opportunity for both owner-occupiers and investors.
Motivated seller. As the executor of the estate is likely to accept market value for the property, buyers can be confident that the property will be sold relatively quickly, usually by auction.
Renovation potential. As deceased estates are often old properties, they represent an opportunity to buy land in an estimated area that has good renovation potential.

Cons

Property condition. Some deceased estates have been empty for some time and may be in need of significant maintenance or repair.
Complex legal process. You have to take due diligence to ensure that the probate or letter of administration as well as the property ownership structure is in order before proceeding with the sale.

Frequently asked questions before buying a deceased estate

While the legislation surrounding the selling and buying of deceased estates varies from state to state, you should generally consider the following:
Has the probate or the letter of administration been granted?
Has the property title either been transferred to the name of the surviving spouse, beneficiary or the executor?
Is there a mortgage on the property? If so, has the lender provided consent for the title transfer?
Have I surrounded myself with the right professionals to help me through the process?
Buying a deceased estate can allow you to buy a cheap property, but very much like buying any home, it depends on the property. The house will likely go to auction and if the house has been kept in good condition there's no reason it wouldn't sell at market value.
You may be more likely to find a property which has been neglected that you can pick up more cheaply, but you'll then need to consider the cost of repairs and renovations.
There could also be a complicated legal process which may add further costs to buying a deceased estate.

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.

Thank you for your feedback!

Written by

Belinda Punshon

Writer

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Belinda Punshon worked for Finder as a writer on home loans and property and as a corporate communications executive. She has a Masters in Advertising, Public Relations and Journalism from the University of New South Wales and a Bachelors in Business from the University of Technology Sydney. See full bio

Co-written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

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2 Responses

ShahiturkApril 27, 2018

Hi,
Very informative article. I read somewhere that you can directly approach the public trustee in-charge of the property that is being sold instead of a real estate firm or an auction. How valid is this? Can we approach NSW Trustee & Guardian with buyer offers directly for instance?

Thank you

Finder

JeniApril 27, 2018Finder

Hi Shahiturk,

Thank you for the compliment.

The NSW Trustee & Guardian provides independent trustee and financial management services for the people of NSW. Its fees and commissions are set by government. You can learn more about the structure, role, function of the NSW Trustee and Guardian.

I hope this helps.

Cheers,
Jeni

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Deceased estate sales

Many buyers view deceased estate sales as a bargain, but beware of the property ownership and legal implications before signing a contract.